Benihana Inc. Reports Record First Fiscal Quarter Net Income.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, today announced net income for the first fiscal quarter (16 weeks) ended July July: see month. 17, 2005 of $4.5 million, or $0.44 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 with $1.9 million, or $0.20 per diluted share, in the corresponding year-ago period. Total revenues increased by 13%, to $74.1 million, compared with $65.4 million, a year ago. The increase in net earnings reflects strong company-wide comparable sales and lower commodity prices, particularly for beef and shrimp. Sales benefited from an average of 2.5% to 3% menu price increase instituted in the second fiscal quarter last year at the teppanyaki restaurants, which account for approximately 78.5% of total revenues. The teppanyaki restaurants experienced an 8.5% increase in comparable sales with a 4.7% increase in comparable restaurant guest count, while RA Sushi comparable sales increased by 25.0%, on a 22.2% increase in comparable restaurant traffic. Haru comparable sales rose 0.5% while comparable guest count for Haru restaurants decreased 3.2%. Total guest count at the teppanyaki restaurants increased by 6.4% to 2.4 million customers, Haru's total guest count increased by 15.7% to 183,000, and RA Sushi's total guest count increased by 41.0% to 350,000. 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. ("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 by 42.9%, to $13.4 million, with ROP margins advancing to 18.2%, compared with 14.4% in the corresponding year-ago first fiscal quarter, a 380 basis point improvement. Gross profit increased by 16.8%, to $55.7 million, representing a 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. on restaurant 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 of 75.6%, compared to 73.4% in the corresponding year-ago first fiscal quarter. 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. expressed as a percentage of restaurant sales declined to 57.4%, from 59.0% a year ago, as productivity (measured as a percentage of customers per labor hour) increased at both the teppanyaki and RA Sushi chains. "We are obviously pleased with the results for the first fiscal quarter," 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:
(character) underscore - _, ASCII 95. the strength of our Company's brands and the popularity of our four restaurant concepts. We anticipate fiscal 2006 will be a strong, highly satisfactory year of growth." In the first fiscal quarter, the Company opened its newest Haru location in the Old Town area of 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. , marking the chain's first restaurant outside of 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. . Under development, and expected to be opened this fiscal year, are new 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. , the first to incorporate a new prototype design. New RA Sushi units in Palm Beach Gardens, Florida Palm Beach Gardens is a city in Palm Beach County in the U.S. state of Florida. The city is in the center of a rapidly-developing area north of West Palm Beach in the northern part of the county and the South Florida metropolitan area. ; Huntington Beach, California Huntington Beach is a seaside city in Orange County in southern California. As of the 2000 census, the city population was 189,594. It is bordered by the Pacific Ocean on the west, by Seal Beach on the north, by Costa Mesa on the south, by Westminster on the northeast, and by ; Glenview, Illinois There are at least two locations in Illinois called Glenview:
Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. ; 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 and Tustin, California Tustin is a city in Orange County, California, United States. As of the 2006 census, the city had a total population of 70,871. The city is located next to the county seat, Santa Ana, and does not include the Tustin Foothills. , near Newport Beach, California Newport Harbor redirects here. For the MTV reality series, see . Newport Beach, incorporated in 1906, is a city in Orange County, California, 10 miles south of downtown Santa Ana. are also under development. Fiscal 2006 Second Quarter Outlook Comparable sales in the fiscal 2006 second quarter, which are anticipated to increase 4% to 5% compared to the corresponding year-ago quarter, will be affected by the menu price increases made in the second quarter of fiscal 2005. Total sales are expected to increase by a similar percentage with eight to eleven store weeks lost to remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling projects during the quarter. The Short Hills, New Jersey Benihana restaurant will begin a remodeling project during the second fiscal 2006 quarter incorporating most of the design elements of our new prototype and is expected to remain closed until late in the fiscal year. Per diluted share, net income is currently estimated to be $0.20 to $0.22 per share after considering the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). that the issuance of the 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". and the impact that the recent increase in the stock price have had on common shares and equivalents outstanding. About Benihana Benihana, now in its 41st year and operator of the nation's largest chain of Japanese and sushi theme restaurants, currently operates 72 restaurants nationwide, including 56 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 seven restaurants - two Benihana teppanyaki restaurants and five RA Sushi restaurants. In addition, a total of 21 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 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. 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. 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 Monday, August 22, 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 September 5, 2005. For replay, dial 877-519-4471 and use PIN number 6354072.
Benihana Inc. and Subsidiaries
Condensed Consolidated
Statements of Earnings
(Unaudited)
(in thousands except per share data)
Four Periods
Ended
-----------------
July 17, July 18,
2005 2004 $Change % Change
-------- -------- -------- ---------
Revenues
Restaurant sales $73,617 $64,934 $8,683 13.4%
Franchise fees and royalties 448 457 (9) (2.0)
-------- -------- -------- ---------
Total revenues 74,065 65,391 8,674 13.3
-------- -------- -------- ---------
Costs and Expenses
Cost of food and beverage sales 17,956 17,279 677 3.9
Restaurant operating expenses 42,271 38,283 3,988 10.4
Restaurant opening costs 289 254 35 13.8
Marketing, general and
administrative expenses 6,256 6,331 (75) (1.2)
-------- -------- -------- ---------
Total operating expenses 66,772 62,147 4,625 7.4
-------- -------- -------- ---------
Earnings from operations 7,293 3,244 4,049 124.8
Interest expense, net 117 114 3 2.6
-------- -------- -------- ---------
Earnings before income taxes and
minority interest 7,176 3,130 4,046 129.3
Income tax provision 2,500 1,006 1,494 148.5
-------- -------- -------- ---------
Earnings before minority
interest 4,676 2,124 2,552 120.2
Minority interest 178 212 (34) (16.0)
-------- -------- -------- ---------
Net income 4,498 1,912 2,586 135.3
Less: accretion of issuance
costs and preferred stock
dividends 177 26 151 580.8
-------- -------- -------- ---------
Net income attributable to
common stockholders $4,321 $1,886 $2,435 129.1%
======== ======== ======== =========
Earnings Per Share
Basic earnings per share $0.47 $0.21 $0.26 123.8%
======== ======== ======== =========
Diluted earnings per share $0.44 $0.20 $0.24 120.0%
======== ======== ======== =========
Weighted Average Shares
Outstanding
Basic 9,224 9,133 91 1.0%
======== ======== ======== =========
Diluted 10,319 9,775 544 5.6%
======== ======== ======== =========
Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)
(in thousands)
Four Periods
Ended
-----------------
July 17, July 18,
2005 2004 $Change % Change
-------- -------- -------- ---------
Total restaurant sales by
concept:
Benihana $57,789 $52,481 $5,308 10.1%
Haru 8,234 7,100 1,134 16.0
RA Sushi 7,037 4,901 2,136 43.6
Sushi Doraku 557 452 105 23.2
-------- -------- -------- ---------
Total restaurant sales $73,617 $64,934 $8,683 13.4%
======== ======== ======== =========
Comparable restaurant sales by
concept:
Benihana $55,444 $51,089 $4,355 8.5%
Haru 7,132 7,100 32 0.5
RA Sushi 6,126 4,901 1,225 25.0
Sushi Doraku 557 452 105 23.2
-------- -------- -------- ---------
Total comparable restaurant
sales $69,259 $63,542 $5,717 9.0%
======== ======== ======== =========
Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)
(in thousands)
Four Periods
Ended
-----------------
July 17, July 18,
2005 2004 $Change % Change
-------- -------- -------- ---------
Restaurant sales $73,617 $64,934 $8,683 13.4%
Cost of food & beverage sales 17,956 17,279 677 3.9
-------- -------- -------- ---------
Gross profit 55,661 47,655 8,006 16.8
-------- -------- -------- ---------
Restaurant operating expenses:
Labor and related costs 25,294 23,150 2,144 9.3
Restaurant supplies 1,448 1,249 199 15.9
Credit card discounts 1,336 1,153 183 15.9
Utilities 1,772 1,558 214 13.7
Occupancy costs 4,384 3,850 534 13.9
Depreciation and amortization 3,148 2,782 366 13.2
Other restaurant operating
expenses 4,889 4,541 348 7.7
-------- -------- -------- ---------
Total restaurant operating
expenses 42,271 38,283 3,988 10.4
-------- -------- -------- ---------
Restaurant operating profit $13,390 $9,372 $4,018 42.9%
======== ======== ======== =========
Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)
Four Periods Ended
-------------------------------
July 17, 2005 July 18, 2004
--------------- ---------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 24.39 26.61
--------------- ---------------
Gross profit margin 75.61 73.39
--------------- ---------------
Restaurant operating expenses:
Labor and related costs 34.36 35.65
Restaurant supplies 1.97 1.92
Credit card discounts 1.81 1.78
Utilities 2.41 2.40
Occupancy costs 5.96 5.93
Depreciation and amortization 4.28 4.28
Other restaurant operating expenses 6.63 7.00
--------------- ---------------
Total restaurant operating expenses 57.42 58.96
--------------- ---------------
Restaurant operating profit margin 18.19% 14.43%
=============== ===============
Benihana Inc. and Subsidiaries
Balance Sheet Data
(Unaudited)
(in thousands)
July 17, 2005 March 27, 2005
-------------- --------------
Assets
Cash and cash equivalents $6,095 $3,278
Other current assets 9,795 9,625
-------------- --------------
Total current assets 15,890 12,903
Property and equipment, net 109,926 108,132
Goodwill 28,131 28,131
Other assets 5,130 5,088
-------------- --------------
$159,077 $154,254
============== ==============
Liabilities and Stockholders' Equity
Current maturity of bank debt $3,333 $3,333
Current maturity of capital leases 2 26
Other current liabilities 23,716 23,082
-------------- --------------
Total current liabilities 27,051 26,441
Long-term debt--bank 5,000 6,667
Other liabilities 7,086 6,635
-------------- --------------
Total liabilities 39,137 39,743
Minority interest 2,177 1,999
Convertible preferred stock 9,328 9,305
Total stockholders' equity 108,435 103,207
-------------- --------------
$159,077 $154,254
============== ==============
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