Benihana Inc. (ticker: BNHNA, exchange: NASDAQ Global Market (.O))
News Release -
9-Feb-2007
Benihana Inc. Reports Fiscal Third Quarter 2007 Results -Conference Call to Be Held Today at 8:30 AM ET-
MIAMI--(BUSINESS WIRE)--Feb. 9, 2007--Benihana Inc. (NASDAQ: BNHNA
and BNHN), operator of the nation's largest chain of Japanese theme
and sushi restaurants, today reported results for its 12-week fiscal
third quarter ended December 31, 2006.
Highlights for the Company's fiscal third quarter 2007 relative to
the same period a year ago include:
- Diluted earnings per share of $0.28 vs. $0.30
- Total restaurant sales increased 11.8% to $61.9 million
- Company-wide comparable restaurant sales increased 9.3%
- Restaurant operating profit of $10.5 vs. $10.3 million
- Income from operations of $5.2 million vs. $5.4 million
"Across all three concepts, our comparable restaurants exhibited
robust sales and guest count growth, reinforcing our status as the
premier destination for Japanese theme and sushi dining. In addition,
we benefited from strong performances at our newest Benihana
teppanyaki and RA Sushi locations, which not only demonstrates our
ability to successfully open new units, but also showcases the equity
of our brands," said Joel A. Schwartz, President and CEO.
Mr. Schwartz continued, "With regards to our ongoing renovation
program, we now boast five updated restaurants modeled on the "next
Benihana" prototype (Short Hills, Cleveland, Memphis, Indianapolis,
Anaheim), which together have met our operating performance targets
and substantiate the soundness of our renovation strategy. We are
quite pleased with the progress we have made so far in implementing
this program."
Fiscal Third Quarter 2007 Results
For the fiscal third quarter 2007, total revenues increased 11.8%,
to $62.2 million, compared with $55.6 million in the prior year
comparable period. Total restaurant sales grew 11.8% to $61.9 million
from $55.3 million in the comparable quarter of the previous year.
Company-wide comparable restaurant sales were 9.3%, including 8.1% at
Benihana teppanyaki, 11.9% at RA Sushi, and 14.5% at Haru.
Restaurant sales for the quarter included a $4.7 million increase
from the comparable base and $5.4 million from new and acquired
restaurants. Restaurant sales decreased by $2.8 million, net, during
the third fiscal quarter, as a result of temporary closures during the
period. Benihana teppanyaki restaurants in Anaheim, Burlingame, Cherry
Hill, Ft. Lauderdale, Miami Beach, and Torrance locations were
temporarily closed for renovation or maintenance in the current
quarter. Additionally, restaurant sales totaling $0.7 million were
lost from units that were sold.
During the fiscal third quarter 2007, the Company opened a new
Benihana teppanyaki restaurant in Coral Gables, Florida, and two RA
Sushi Bar restaurants, one in Corona, California and the other in
Torrance, California. Compared to the year-ago period, the Company
realized a gain of 47 operating weeks (893 vs. 846) in fiscal third
quarter 2007 compared to the same period last year.
Restaurant operating profit was $10.5 million, or 17.0% of
restaurant sales, compared to $10.3 million, or 18.7% of restaurants
sales a year-ago. The Company was negatively impacted by higher labor,
restaurant supplies, administrative and depreciation costs, largely as
a result of the renovation program. The ongoing renovation program
impacted operating profit by approximately $0.9 million during the
current period due to ongoing expenses incurred during periods of
temporary closure and additional depreciation charges. Additionally,
restaurant operating profit for the four units currently closed for
renovation aggregated approximately $0.9 million during the third
fiscal quarter of last year. Insurance proceeds included in operating
profit relating to a fire in the Miami Beach teppanyaki unit were $0.3
million ($0.02 per diluted share, net of tax) in the fiscal third
quarter 2007.
Total operating expenses were $57.0 million, or 92.2% of
restaurant sales, compared to $50.2 million, or 90.7% of restaurant
sales last year, resulting in income from operations of $5.2 million
and $5.4 million, respectively, for the two periods.
Net income was $3.3 million in both periods, although on a fully
diluted share basis, the Company reported $0.28 in diluted earnings
per share in the fiscal third quarter of 2007 compared to $0.30 in
diluted earnings per share in the fiscal third quarter of 2006. The
current year's fiscal period had approximately 5.0% more average
shares and equivalent shares outstanding than the previous similar
period.
Financial Guidance
For the 13-week fiscal fourth quarter 2007, the Company expects
diluted earnings per share of between $0.29 and $0.31 on approximately
5% more shares and equivalents outstanding than the prior year's
fourth quarter. Factored into the guidance for the fourth fiscal
quarter are estimates for ongoing expenses, forgone operating profits
and accelerated depreciation that equate to approximately $0.10 to
0.12 per diluted share. During the quarter, the Company anticipates
reopening one renovated restaurant in March 2007. The other three
restaurants currently closed for renovations are slated to open early
during the Company's fiscal first quarter 2008. The Company estimates
that it will lose approximately 48 to 52 gross restaurant operating
weeks during the fiscal fourth quarter of 2007 because of the ongoing
renovation program. Overall, the Company anticipates that it will have
a net gain of 120 to 125 operating weeks compared to the year-ago
period due to a 13-week fiscal fourth quarter 2007 and the addition of
new restaurants.
Conference Call Today
The Company will host a conference call to discuss its fiscal
third quarter 2007 earnings results on Friday, February 9, 2007 at
8:30 AM ET. The conference call will be hosted by Joel A. Schwartz,
President and Chief Executive Officer; Jose I. Ortega, Vice President
of Finance and Chief Financial Officer; Juan C. Garcia, Senior Vice
President and Chief Operating Administrative Officer, and Michael R.
Burris, Vice President of Investor Relations.
The conference call can be accessed live over the phone by dialing
1-877-704-5384, or for international callers, 1-913-312-1297. A replay
will be available one hour after the call through February 16, 2007
and can be accessed by dialing 1-888-203-1112, or for international
callers, 1-719-457-0820; the conference ID is 4067637. The call will
also be webcast live from the Company's website at www.benihana.com
under the investor relations section.
About Benihana
Benihana Inc. (NASDAQ: BNHNA; BNHN) operates 79 restaurants
nationwide, including 59 Benihana teppanyaki restaurants, seven Haru
sushi restaurants, and thirteen RA Sushi Bar restaurants. Under
development at present are twelve restaurants - four Benihana
teppanyaki restaurants, two Haru restaurants, and six RA Sushi
restaurants. In addition, 17 franchised Benihana teppanyaki
restaurants are operating in the U.S., Latin America and the
Caribbean.
Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
(in thousands except per share data)
Three Periods Ended
-------------------
$ %
31-Dec-06 1-Jan-06 Change Change
-------------------------------------
Revenues
Restaurant sales $61,867 $55,345 $6,522 11.8%
Franchise fees and royalties 335 299 36 12.0%
-------------------------------------
Total revenues 62,202 55,644 6,558 11.8%
-------------------------------------
Costs and Expenses
Cost of food and beverage sales 15,153 13,476 1,677 12.4%
Restaurant operating expenses 36,195 31,542 4,653 14.8%
Restaurant opening costs 363 200 163 81.5%
Marketing, general and
administrative expenses 5,322 4,978 344 6.9%
-------------------------------------
Total operating expenses 57,033 50,196 6,837 13.6%
-------------------------------------
Income from operations 5,169 5,448 (279) -5.1%
Interest (income) expense, net (33) (68) 35 -51.5%
-------------------------------------
Income before income taxes and
minority interest 5,202 5,516 (314) -5.7%
Income tax provision 1,923 2,107 (184) -8.7%
-------------------------------------
Income before minority interest 3,279 3,409 (130) -3.8%
Minority interest - 109 (109) -100.0%
-------------------------------------
Net income 3,279 3,300 (21) -0.6%
Less: accretion of issuance
costs and preferred stock
dividends 272 251 21 8.4%
-------------------------------------
Net income attributable to
common stockholders $3,007 $3,049 ($42) -1.4%
=====================================
Earnings Per Share
Basic earnings per common share $0.30 $0.33 ($0.03) -9.1%
=====================================
Diluted earnings per common
share $0.28 $0.30 ($0.02) -6.7%
=====================================
Weighted Average Shares
Outstanding
Basic 9,926 9,365 561 6.0%
=====================================
Diluted 11,555 11,005 550 5.0%
=====================================
Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
(in thousands except per share data)
Ten Periods Ended
-------------------
$ %
31-Dec-06 1-Jan-06 Change Change
-------------------------------------
Revenues
Restaurant sales $199,846 $183,236 $16,610 9.1%
Franchise fees and royalties 1,178 1,095 83 7.6%
-------------------------------------
Total revenues 201,024 184,331 16,693 9.1%
-------------------------------------
Costs and Expenses
Cost of food and beverage sales 48,618 44,322 4,296 9.7%
Restaurant operating expenses 117,796 105,623 12,173 11.5%
Restaurant opening costs 1,074 679 395 58.2%
Marketing, general and
administrative expenses 17,628 16,256 1,372 8.4%
-------------------------------------
Total operating expenses 185,116 166,880 18,236 10.9%
-------------------------------------
Income from operations 15,908 17,451 (1,543) -8.8%
Interest (income) expense, net (285) 28 (313) -1117.9%
-------------------------------------
Income before income taxes and
minority interest 16,193 17,423 (1,230) -7.1%
Income tax provision 5,770 6,367 (597) -9.4%
-------------------------------------
Income before minority interest 10,423 11,056 (633) -5.7%
Minority interest - 413 (413) -100.0%
-------------------------------------
Net income 10,423 10,643 (220) -2.1%
Less: accretion of issuance
costs and preferred stock
dividends 834 1,180 (346) -29.3%
-------------------------------------
Net income attributable to
common stockholders $9,589 $9,463 $126 1.3%
=====================================
Earnings Per Share
Basic earnings per common share $0.97 $1.02 ($0.05) -4.9%
=====================================
Diluted earnings per common
share $0.91 $1.01 ($0.10) -9.9%
=====================================
Weighted Average Shares
Outstanding
Basic 9,876 9,295 581 6.3%
=====================================
Diluted 11,494 10,548 946 9.0%
=====================================
Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)
(in thousands)
Three Periods Ended
-------------------
$ %
31-Dec-06 1-Jan-06 Change Change
--------------------------------------
Total restaurant sales by
concept:
Benihana $46,061 $43,222 $2,839 6.6%
Haru 7,178 6,270 908 14.5%
RA Sushi 8,628 5,396 3,232 59.9%
Sushi Doraku - 457 (457) -100.0%
--------------------------------------
Total restaurant sales $61,867 $55,345 $6,522 11.8%
======================================
Comparable restaurant sales by
concept:
Benihana $41,984 $38,833 $3,151 8.1%
Haru 7,178 6,270 908 14.5%
RA Sushi 6,040 5,396 644 11.9%
Sushi Doraku - - - 0.0%
--------------------------------------
Total comparable restaurant
sales $55,202 $50,499 $4,703 9.3%
======================================
Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)
(in thousands)
Ten Periods Ended
-------------------
$ %
31-Dec-06 1-Jan-06 Change Change
--------------------------------------
Total restaurant sales by
concept:
Benihana $147,756 $142,926 $4,830 3.4%
Haru 23,778 21,001 2,777 13.2%
RA Sushi 28,127 17,837 10,290 57.7%
Sushi Doraku 185 1,472 (1,287) -87.4%
--------------------------------------
Total restaurant sales $199,846 $183,236 $16,610 9.1%
======================================
Comparable restaurant sales by
concept:
Benihana $140,536 $129,757 $10,779 8.3%
Haru 23,450 21,001 2,449 11.7%
RA Sushi 20,486 17,837 2,649 14.9%
Sushi Doraku 185 175 10 5.7%
--------------------------------------
Total comparable restaurant
sales $184,657 $168,770 $15,887 9.4%
======================================
Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)
(in thousands)
Three Periods Ended
-------------------
$ %
31-Dec-06 1-Jan-06 Change Change
------------------------------------
Restaurant sales $61,867 $55,345 $6,522 11.8%
Cost of food & beverage sales 15,153 13,476 1,677 12.4%
------------------------------------
Gross profit 46,714 41,869 4,845 11.6%
------------------------------------
Restaurant operating expenses:
Labor and related costs 20,962 18,472 2,490 13.5%
Restaurant supplies 1,487 1,143 344 30.1%
Credit card discounts 1,143 1,038 105 10.1%
Utilities 1,489 1,330 159 12.0%
Occupancy costs 3,870 3,295 575 17.5%
Depreciation and amortization 3,135 2,449 686 28.0%
Other restaurant operating
expenses 4,109 3,815 294 7.7%
------------------------------------
Total restaurant operating
expenses 36,195 31,542 4,653 14.8%
------------------------------------
Restaurant operating profit $10,519 $10,327 $192 1.9%
====================================
Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)
(in thousands)
Ten Periods Ended
-------------------
$ %
31-Dec-06 1-Jan-06 Change Change
-------------------------------------
Restaurant sales $199,846 $183,236 $16,610 9.1%
Cost of food & beverage sales 48,618 44,322 4,296 9.7%
-------------------------------------
Gross profit 151,228 138,914 12,314 8.9%
-------------------------------------
Restaurant operating expenses:
Labor and related costs 67,517 62,083 5,434 8.8%
Restaurant supplies 4,570 3,720 850 22.8%
Credit card discounts 3,700 3,365 335 10.0%
Utilities 5,177 4,633 544 11.7%
Occupancy costs 12,091 11,006 1,085 9.9%
Depreciation and amortization 10,299 8,036 2,263 28.2%
Other restaurant operating
expenses 14,442 12,780 1,662 13.0%
-------------------------------------
Total restaurant operating
expenses 117,796 105,623 12,173 11.5%
-------------------------------------
Restaurant operating profit $33,432 $33,291 $141 0.4%
=====================================
Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)
Three Periods Ended
-------------------
31-Dec-06 1-Jan-06
-------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 24.49% 24.35%
-------------------
Gross profit margin 75.51% 75.65%
-------------------
Restaurant operating expenses:
Labor and related costs 33.88% 33.38%
Restaurant supplies 2.40% 2.07%
Credit card discounts 1.85% 1.88%
Utilities 2.41% 2.40%
Occupancy costs 6.26% 5.95%
Depreciation and amortization 5.07% 4.42%
Other restaurant operating expenses 6.64% 6.89%
-------------------
Total restaurant operating expenses 58.51% 56.99%
-------------------
Restaurant operating profit margin 17.00% 18.66%
===================
Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)
Ten Periods Ended
-------------------
31-Dec-06 1-Jan-06
-------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 24.33% 24.19%
-------------------
Gross profit margin 75.67% 75.81%
-------------------
Restaurant operating expenses:
Labor and related costs 33.78% 33.88%
Restaurant supplies 2.29% 2.03%
Credit card discounts 1.85% 1.84%
Utilities 2.59% 2.53%
Occupancy costs 6.05% 6.01%
Depreciation and amortization 5.15% 4.39%
Other restaurant operating expenses 7.23% 6.96%
-------------------
Total restaurant operating expenses 58.94% 57.64%
-------------------
Restaurant operating profit margin 16.73% 18.17%
===================
Benihana Inc. and Subsidiaries
Balance Sheet Data
(Unaudited)
(in thousands)
31-Dec-06 26-Mar-06
-------------------
Assets
Cash and cash equivalents $15,437 $19,138
Other current assets 11,149 12,921
-------------------
Total current assets 26,586 32,059
Property and equipment, net 138,654 123,578
Goodwill 29,900 29,900
Other assets 6,500 5,979
-------------------
$201,640 $191,516
===================
Liabilities and Stockholders' Equity
Current maturity of bank debt $3,333 $4,166
Other current liabilities 33,067 32,583
-------------------
Total current liabilities 36,400 36,749
Long-term debt--bank - 2,500
Other liabilities 7,643 7,732
-------------------
Total liabilities 44,043 46,981
Convertible preferred stock 19,340 19,273
Total stockholders' equity 138,257 125,262
-------------------
$201,640 $191,516
===================
CONTACT: Benihana Inc.
Joel A. Schwartz or Michael R. Burris, 305-593-0770
or
Integrated Corporate Relations:
Tom Ryan or Raphael Gross, 203-682-8200
SOURCE: Benihana Inc.
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Benihana Inc.
