Benihana Inc. Reports Third Quarter Operating Results; Gross Profit Increased 9.9%; Restaurant Operating Profit Increased 20.2%.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 operating results for the third fiscal quarter (12 weeks) ended January January: see month. 2, 2005. For the third fiscal quarter, total revenues increased to $50.1 million, compared with $47.0 million in the corresponding year ago period, a gain of 6.6%. 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) increased 9.9%, to $37.9 million, from $34.5 million a year ago, and gained approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , compared to $36.1 million in the preceding 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 20.2% over last year's third quarter to $8.7 million. Restaurant opening costs declined approximately $0.6 million, and marketing, general and administrative expenses, chiefly reflecting 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. costs, increased sharply. Legal expenses related to the 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. litigation in the third quarter amounted to $1.2 million, or approximately $0.08 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. Income from operations for the quarter increased 6.5%, to $3.3 million, from $3.1 million in the corresponding year earlier period, and 19.7%, from $2.8 million, sequentially. Net income amounted to $2.0 million, compared with $1.9 million in the corresponding year ago period, an increase of 5.6%; net income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common shareholders totaled $1.9 million in both periods. With 11.2% more shares outstanding, 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 in fiscal 2005's third quarter amounted to $0.20, compared with $0.21 in the corresponding year ago period. "We were very pleased with the restaurant operating performance in the fiscal third 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:
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percent of restaurant sales improved, reflecting our continuing efforts to reduce costs as well as lower commodity prices. A 2-3% increase in prices at the teppanyaki restaurants effected earlier in the fiscal year benefited results and also had no impact on consumer traffic, which actually increased. With several restaurants expected soon to open or reopen re·o·pen tr. & intr.v. re·o·pened, re·o·pen·ing, re·o·pens 1. To open or be opened again: Officials reopened the airport after the snow was cleared. Schools reopen in September. , as well as those under development, we look forward to continued growth. Unfortunately, results for the quarter were adversely impacted by the costs of defending the litigation brought by Benihana of Tokyo, Inc." 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 for the fiscal third quarter totaled $49.6 million, compared with $46.6 million in the corresponding year ago period, an increase of 6.5%. Of the total increase in sales of $3.0 million from last year's third quarter, comparable restaurant sales increases represented $2.4 million, and sales from restaurants less than one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants old represented $2.3 million, offset by sales in the year-ago period by a restaurant temporarily closed for remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling during the quarter and, to a lesser extent, permanent closures. The remodeled unit reopened last week. Restaurant operating profit (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. ) advanced 20.2%, to approximately $8.7 million, from $7.3 million a year ago, and compared with $7.7 million in the preceding second fiscal quarter. Food and beverage costs declined to 23.6% of restaurant sales compared to 26.0% a year ago, reflecting more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. commodity pricing in addition to menu price increases that were effected at the beginning of the second quarter. Total labor and related costs as a percentage of restaurant sales held steady at 35.5%, compared to 35.7% a year ago and 35.5% sequentially. Third quarter comparable restaurant sales, as previously reported, increased 5.3% for the quarter. Benefiting from higher menu prices, the teppanyaki restaurants posted a 5.3% gain, with guest counts at the comparable units increasing 3.1% and all geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. locations positive. RA Sushi continued to have double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. gains, up 11.2% for the quarter. Haru's comps increased 1.7%. Year to Date Results For the ten periods ended January 2, 2005 total revenues increased 7.4%, to $163.6 million, from $152.3 million in the corresponding year ago period. Gross profit increased to $121.7 million from $112.2 million a year ago, and gross margin improved to 75.0%, from 74.2% a year ago. Net income amounted to $5.6 million, compared with $6.3 million in the corresponding year ago period. Net income attributable to common shareholders totaled $5.3 million for the three fiscal quarters and $6.3 million in the corresponding year ago period. Diluted earnings per share amounted to $0.56 per share, compared with $0.70 a year ago on 10% more shares and equivalents outstanding. Litigation costs for the three quarters amounted to $0.12 per diluted share, net of tax. Outlook A teppanyaki restaurant 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, was reopened one week into the third fiscal quarter after undergoing extensive remodeling, and another in Manhasset, NY, closed in the second quarter, reopened last week. New teppanyaki restaurants are currently under development 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. and 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. RA Sushi has under development new units 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, 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. Haru's new unit in the 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]. area 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. is expected to come on stream in early February February: see month. , followed a few weeks later by the new Haru 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. , PA, the chain's first outside New York City. The Company is anticipating comparable sales gains in the current fourth quarter (12 weeks) of 2.5% to 3.5%. Restaurant operating costs operating costs npl → gastos mpl operacionales are expected to remain generally in line with the third quarter and marketing, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. are expected to be similar to the third quarter except that legal expenses are expected to be sharply curtailed. Management expects that net income will range between $0.24 and $0.26 per diluted share. The trial portion of the litigation instituted against the Company and its Board of Directors by Benihana of Tokyo, Inc. was completed on November November: see month. 15, 2004 and a decision is expected in the first quarter of the Company's next fiscal year. While the Company expects a favorable outcome, there can be no assurance that the outcome of the litigation will not have a materially adverse effect upon the Company's results of operations and financial position. About Benihana Benihana, now in its 40th year and one of the nation's largest chains of Asian restaurants, currently operates 69 restaurants nationwide, including 55 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. , February 1, 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 February 15, 2005. For replay, dial 877-519-4471 and use PIN number 5625255.
Benihana Inc.
Consolidated Statements of Operations
(Unaudited)
Three Periods Ended
(amounts in thousands except per share
data and shares and equivalents
outstanding)
Jan. 2, Jan. 4,
2005 2004 $Change % Change
---------------------------------------
Restaurant sales $ 49,626 $ 46,607 $ 3,019 6.5%
Franchise fees & royalties 425 365 60 16.4%
---------------------------------------
50,051 46,972 3,079 6.6%
Cost of food & beverage sales 11,695 12,096 (401) -3.3%
---------------------------------------
Gross profit 37,931 34,511 3,420 9.9%
---------------------------------------
Restaurant operating expenses:
Labor and related costs 17,604 16,629 975 5.9%
Restaurant supplies 999 931 68 7.3%
Credit card discounts 908 801 107 13.4%
Utilities 1,140 1,003 137 13.7%
Occupancy costs 2,943 2,785 158 5.7%
Depreciation and amortization 2,204 1,943 261 13.4%
Other restaurant operating
expenses 3,392 3,145 247 7.9%
---------------------------------------
Total restaurant operating
expenses 29,190 27,237 1,953 7.2%
---------------------------------------
Restaurant operating profit 8,741 7,274 1,467 20.2%
Restaurant opening costs 114 720 (606) -84.2%
Marketing, general and
administrative expenses 5,718 3,789 1,929 50.9%
---------------------------------------
Income from operations 3,334 3,130 204 6.5%
Interest expense, net 56 91 (35) -38.5%
---------------------------------------
Income before income taxes and
minority interest 3,278 3,039 239 7.9%
Income tax provision 1,130 988 142 14.4%
---------------------------------------
Income before minority interest 2,148 2,051 97 4.7%
Minority interest 131 141 (10) -7.1%
---------------------------------------
Net income 2,017 1,910 107 5.6%
---------------------------------------
Less: accretion of issuance
costs and preferred stock
dividends 132 - 132
Net income attributable to
common stockholders $ 1,885 $ 1,910 $ (25) -1.3%
=======================================
Basic earnings per share $ 0.21 $ 0.21 $ - 0.0%
=======================================
Diluted earnings per share $ 0.20 $ 0.21 $ (0.01) -4.8%
=======================================
Shares and equivalents
outstanding 10,188,000 9,166,000
Three Periods Ended
Jan. 2, Jan. 4,
2005 2004 $Change % Change
---------------------------------------
Sales by concept:
Benihana $ 40,297 $ 38,797 $ 1,500 3.9%
Haru 4,974 4,893 81 1.7%
RA Sushi 3,984 2,581 1,403 54.4%
Sushi Doraku 371 336 35 10.4%
-----------------------------
Total restaurant sales $ 49,626 $ 46,607 $ 3,019 6.5%
=============================
Comparable sales by concept:
Benihana $ 39,063 $ 37,106 $ 1,957 5.3%
Haru 4,974 4,893 81 1.7%
RA Sushi 2,871 2,581 290 11.2%
Sushi Doraku 371 336 35 10.4%
-----------------------------
Total restaurant comparable
sales $ 47,279 $ 44,916 $ 2,363 5.3%
=============================
Ten Periods Ended
(amounts in thousands except per
share data and shares and
equivalents outstanding)
Jan. 2, Jan. 4,
2005 2004 $Change % Change
---------------------------------------
Restaurant sales $ 162,361 $ 151,074 $ 11,287 7.5%
Franchise fees & royalties 1,191 1,235 (44) -3.6%
---------------------------------------
163,552 152,309 11,243 7.4%
Cost of food & beverage sales 40,626 38,899 1,727 4.4%
---------------------------------------
Gross profit 121,735 112,175 9,560 8.5%
---------------------------------------
Restaurant operating expenses:
Labor and related costs 57,747 54,323 3,424 6.3%
Restaurant supplies 3,168 2,961 207 7.0%
Credit card discounts 2,916 2,615 301 11.5%
Utilities 3,978 3,683 295 8.0%
Occupancy costs 9,653 8,720 933 10.7%
Depreciation and amortization 7,118 6,171 947 15.3%
Other restaurant operating
expenses 11,319 10,551 768 7.3%
---------------------------------------
Total restaurant operating
expenses 95,899 89,024 6,875 7.7%
---------------------------------------
Restaurant operating profit 25,836 23,151 2,685 11.6%
Restaurant opening costs 667 1,552 (885) -57.0%
Marketing, general and
administrative expenses 16,997 12,500 4,497 36.0%
---------------------------------------
Income from operations 9,363 10,334 (971) -9.4%
Interest expense, net 242 324 (82) -25.3%
---------------------------------------
Income before income taxes and
minority interest 9,121 10,010 (889) -8.9%
Income tax provision 3,038 3,207 (169) -5.3%
---------------------------------------
Income before minority interest 6,083 6,803 (720) -10.6%
Minority interest 493 479 14 2.9%
---------------------------------------
Net income 5,590 6,324 (734) -11.6%
---------------------------------------
Less: accretion of issuance costs
and preferred stock dividends 290 - 290
Net income attributable to common
stockholders $ 5,300 $ 6,324 $ (1,024) -16.2%
=======================================
Basic earnings per share $ 0.59 $ 0.72 $ (0.14) -19.4%
=======================================
Diluted earnings per share $ 0.56 $ 0.70 $ (0.15) -21.4%
=======================================
Shares and equivalents
outstanding 9,979,000 9,098,000
Ten Periods Ended
Jan. 2, Jan. 4,
2005 2004 $Change % Change
Sales by concept:
Benihana $ 131,392 $ 125,521 $ 5,871 4.7%
Haru 17,299 16,616 683 4.1%
RA Sushi 12,518 7,860 4,658 59.3%
Sushi Doraku 1,152 1,077 75 7.0%
-----------------------------
Total restaurant sales $ 162,361 $ 151,074 $ 11,287 7.5%
=============================
Comparable sales by concept:
Benihana $ 124,887 $ 119,908 $ 4,979 4.2%
Haru 17,299 16,616 683 4.1%
RA Sushi 8,743 7,860 883 11.2%
Sushi Doraku 1,152 1,077 75 7.0%
-----------------------------
Total restaurant comparable
sales $ 152,081 $ 145,461 $ 6,620 4.6%
=============================
Three Periods Ended
Jan. 2, Jan. 4,
2005 2004
---------------------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 23.57% 25.95%
---------------------------------
Gross profit 76.43% 74.05%
---------------------------------
Restaurant operating expenses:
Labor and related costs 35.47% 35.68%
Restaurant supplies 2.01% 2.00%
Credit card discounts 1.83% 1.72%
Utilities 2.30% 2.15%
Occupancy costs 5.93% 5.98%
Depreciation and amortization 4.44% 4.17%
Other restaurant operating expenses 6.84% 6.75%
---------------------------------
Total restaurant operating expenses 58.82% 58.44%
---------------------------------
Restaurant operating profit 17.60% 15.61%
=================================
Ten Periods Ended
Jan. 2, Jan. 4,
2005 2004
---------------------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 25.02% 25.75%
---------------------------------
Gross profit 74.98% 74.25%
---------------------------------
Restaurant operating expenses:
Labor and related costs 35.57% 35.96%
Restaurant supplies 1.95% 1.96%
Credit card discounts 1.80% 1.73%
Utilities 2.45% 2.44%
Occupancy costs 5.95% 5.77%
Depreciation and amortization 4.38% 4.08%
Other restaurant operating expenses 6.97% 6.98%
---------------------------------
Total restaurant operating expenses 59.07% 58.93%
---------------------------------
Restaurant operating profit 15.92% 15.32%
=================================
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