Aug. 31, 2009 (Business Wire) -- Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today reported results for its 16-week fiscal first quarter ended July 19, 2009.
Fiscal First Quarter 2010 Results
Richard C. Stockinger, Chief Executive Officer, said, "We are operating our business in perhaps the most difficult environment we have seen in decades, and the economic downturn continues to take its toll on our industry.”
“As previously announced, we have formulated a comprehensive strategy to rebuild sales momentum through the Benihana Renewal Program and are confident that over time, we can improve guest perceptions of Benihana Teppanyaki as it relates to five key attributes of the dining experience: image, value, quality, consistency, and lack of Japan. We are improving the quality of the food and beverages, raising the level of our service standards, and creating more awareness and closer relationships with our guests so that they will celebrate their special occasions as well as their more routine ‘dining-out’ experiences with us. With the successful implementation of these initiatives, we are confident that we will pull through and emerge with a much stronger Benihana brand.”
“We are pleased with the recent performance of RA Sushi, which has turned in positive comparable sales during the quarter, and was also able to expand its restaurant operating margins.”
For fiscal first quarter of 2010, total revenues increased 1.6% to $96.0 million, compared to $94.5 million in fiscal first quarter 2009. Total restaurant sales increased 1.6% to $95.5 million in the fiscal first quarter 2010 from $93.9 million in the fiscal first quarter 2009.
For the fiscal first quarter 2010, Company-wide comparable restaurant sales were (10.1%), comprised of (13.1%) at Benihana Teppanyaki, 3.5% at RA Sushi, and (14.8%) at Haru. During the period, Benihana Teppanyaki represented approximately 66.2% of consolidated restaurant sales, while RA Sushi and Haru accounted for 23.2% and 10.6% of consolidated restaurant sales, respectively. There were a total of 1,532 store-operating weeks in the fiscal first quarter 2010 compared to 1,348 store-operating weeks in the fiscal first quarter 2009.
Restaurant operating profit for the fiscal first quarter of 2010 was $12.2 million, or 12.8% of restaurant sales, compared to $12.4 million, or 13.2% of restaurant sales a year-ago.
Marketing, general and administrative expenses for the fiscal first quarter of 2010 totaled $9.8 million, or 10.3% of restaurant sales, compared to $8.8 million, or 9.3% of restaurant sales in the same period last year.
Income from operations was $2.0 million for the fiscal first quarter of 2010, compared to income from operations of $3.4 million in the prior year quarter.
Net income for the fiscal first quarter of 2010 was $1.1 million, or $0.05 in diluted earnings per share, compared to net income of $2.2 million, or $0.12 in diluted earnings per share in the same quarter last year.
In the fiscal first quarter of 2010, the Company opened two RA Sushi restaurants in Atlanta, Georgia and Houston, Texas, and one Benihana Teppanyaki restaurant in Orlando, Florida.
The Company has completed its development plans for the fiscal year with the opening of a RA Sushi restaurant in Leawood, Kansas during the fiscal second quarter.
After the close of business yesterday, Sunday, August 30th, the Company closed its Benihana teppanyaki restaurant located in the Georgetown area of Washington, D.C.
Fiscal Year 2010 Guidance
The Company is reiterating the following guidance for fiscal year 2010:
- Total restaurant sales of $305 million to $310 million. Total restaurant operating weeks are estimated to be between 5,000 and 5,075;
- Four new restaurants, including one Benihana Teppanyaki and three RA Sushi restaurants, which have all opened;
- Cost of sales, as a percentage of sales, will hold steady to fiscal year 2009 average levels with the rollout of enhanced menu items at Benihana teppanyaki, beginning in the second fiscal quarter;
- Capital expenditures of approximately $15 million;
- Reduction in outstanding debt by approximately $6 million, resulting in an outstanding balance of approximately $27.5 million;
- Diluted earnings per share of $0.40 to $0.45. Diluted common shares outstanding are estimated to be approximately 18.7 million shares.
Conference Call Today
The Company will hold a conference call to discuss its fiscal first quarter 2010 results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing 1-888-218-8172, or for international callers, 1-913-312-0640. A replay will be available one hour after the call through September 7, 2009 and can be accessed by dialing 1-888-203-1112, or for international callers, 1-719-457-0820; the conference ID is 3410807. The call will also be webcast live from the investor relations portion of the Company's website at www.benihana.com.
About Benihana
Benihana Inc. (Nasdaq: BNHNA) (Nasdaq: BNHN) operates 98 restaurants nationwide, including 64 Benihana Teppanyaki restaurants, nine Haru sushi restaurants, and 25 RA Sushi Bar restaurants. Under development at present is one Benihana Teppanyaki restaurant. In addition, 22 franchised Benihana Teppanyaki restaurants are operating in the U.S., Latin America and the Caribbean.
To learn more about the Company and its three Japanese theme and sushi restaurant concepts, please view the corporate video at www.benihana.com/about/video.
| Benihana Inc. and Subsidiaries |
| Condensed Consolidated Statements of Earnings |
| (Unaudited) |
| |
| (in thousands except per share data) |
| | | Four Periods Ended | | | | |
| | | 19-Jul-09 | | 20-Jul-08 | | $ Change | | % Change |
| | | | | | | | | |
| Revenues | | | | | | | | |
| Restaurant sales | | $ | 95,465 | | | $ | 93,925 | | | $ | 1,540 | | | 1.6 | % |
| Franchise fees and royalties | | | 507 | | | | 535 | | | | (28 | ) | | -5.2 | % |
| Total revenues | | | 95,972 | | | | 94,460 | | | | 1,512 | | | 1.6 | % |
| | | | | | | | | |
| Costs and Expenses | | | | | | | | |
| Cost of food and beverage sales | | | 22,358 | | | | 22,600 | | | | (242 | ) | | -1.1 | % |
| Restaurant operating expenses | | | 60,910 | | | | 58,920 | | | | 1,990 | | | 3.4 | % |
| Restaurant opening costs | | | 903 | | | | 735 | | | | 168 | | | 22.9 | % |
| Marketing, general and administrative expenses | | | 9,821 | | | | 8,776 | | | | 1,045 | | | 11.9 | % |
| Total operating expenses | | | 93,992 | | | | 91,031 | | | | 2,961 | | | 3.3 | % |
| | | | | | | | | |
| Income from operations | | | 1,980 | | | | 3,429 | | | | (1,449 | ) | | -42.3 | % |
| Interest expense, net | | | (397 | ) | | | (56 | ) | | | (341 | ) | | 608.9 | % |
| | | | | | | | | |
| Income before income taxes | | | 1,583 | | | | 3,373 | | | | (1,790 | ) | | -53.1 | % |
| Income tax provision | | | 491 | | | | 1,181 | | | | (690 | ) | | -58.4 | % |
| | | | | | | | | |
| Net income | | | 1,092 | | | | 2,192 | | | | (1,100 | ) | | -50.2 | % |
| Less: accretion of issuance costs and preferred stock dividends | | | 333 | | | | 334 | | | | (1 | ) | | -0.3 | % |
| | | | | | | | | |
| Net income attributable to common stockholders | | $ | 759 | | | $ | 1,858 | | | $ | (1,099 | ) | | -59.1 | % |
| | | | | | | | | |
| Earnings Per Share | | | | | | | | |
| Basic earnings per common share | | $ | 0.05 | | | $ | 0.12 | | | $ | (0.07 | ) | | 58.3 | % |
| Diluted earnings per common share | | $ | 0.05 | | | $ | 0.12 | | | $ | (0.07 | ) | | 58.3 | % |
| | | | | | | | | |
| Weighted Average Shares Outstanding | | | | | | | | |
| Basic | | | 15,352 | | | | 15,279 | | | | 73 | | | 0.5 | % |
| Diluted | | | 15,374 | | | | 18,595 | | | | (3,221 | ) | | -17.3 | % |
| Benihana Inc. and Subsidiaries |
| Sales by Concept |
| (Unaudited) |
| |
| (in thousands) |
| | | Four Periods Ended | | | | |
| | | 19-Jul-09 | | 20-Jul-08 | | $ Change | | % Change |
| | | | | | | | | |
| Total restaurant sales by concept: | | | | | | | | |
| Benihana | | $ | 63,224 | | $ | 64,233 | | $ | (1,009 | ) | | -1.6 | % |
| RA Sushi | | | 22,107 | | | 17,803 | | | 4,304 | | | 24.2 | % |
| Haru | | | 10,134 | | | 11,889 | | | (1,755 | ) | | -14.8 | % |
| Total restaurant sales | | $ | 95,465 | | $ | 93,925 | | $ | 1,540 | | | 1.6 | % |
| | | | | | | | | |
| Comparable restaurant sales by concept: | | | | | | | | |
| Benihana | | $ | 55,919 | | $ | 64,317 | | $ | (8,398 | ) | | -13.1 | % |
| RA Sushi | | | 18,431 | | | 17,803 | | | 628 | | | 3.5 | % |
| Haru | | | 10,134 | | | 11,889 | | | (1,755 | ) | | -14.8 | % |
| Total comparable restaurant sales | | $ | 84,484 | | $ | 94,009 | | $ | (9,525 | ) | | -10.1 | % |
| Benihana Inc. and Subsidiaries |
| Restaurant Operating Profit |
| (Unaudited) |
| |
| (in thousands) |
| | | Four Periods Ended | | | | |
| | | 19-Jul-09 | | 20-Jul-08 | | $ Change | | % Change |
| | | | | | | | | |
| Restaurant sales | | $ | 95,465 | | $ | 93,925 | | $ | 1,540 | | | 1.6 | % |
| Cost of food & beverage sales | | | 22,358 | | | 22,600 | | | (242 | ) | | -1.1 | % |
| Gross profit | | | 73,107 | | | 71,325 | | | 1,782 | | | 2.5 | % |
| | | | | | | | | |
| Restaurant operating expenses: | | | | | | | | |
| Labor and related costs | | | 33,316 | | | 33,606 | | | (290 | ) | | -0.9 | % |
| Restaurant supplies | | | 2,512 | | | 2,295 | | | 217 | | | 9.5 | % |
| Credit card discounts | | | 1,813 | | | 1,795 | | | 18 | | | 1.0 | % |
| Utilities | | | 2,773 | | | 2,727 | | | 46 | | | 1.7 | % |
| Occupancy costs | | | 6,468 | | | 5,811 | | | 657 | | | 11.3 | % |
| Depreciation and amortization | | | 5,663 | | | 5,581 | | | 82 | | | 1.5 | % |
| Other restaurant operating expenses | | | 8,365 | | | 7,105 | | | 1,260 | | | 17.7 | % |
| Total restaurant operating expenses | | | 60,910 | | | 58,920 | | | 1,990 | | | 3.4 | % |
| | | | | | | | | |
| Restaurant operating profit | | $ | 12,197 | | $ | 12,405 | | $ | (208 | ) | | -1.7 | % |
| Benihana Inc. and Subsidiaries |
| Restaurant Operating Margins |
| (Unaudited) |
| |
| | | Four Periods Ended |
| | | 19-Jul-09 | | 20-Jul-08 |
| | | | | |
| Restaurant sales | | 100.00% | | 100.00% |
| Cost of food and beverage sales | | 23.42% | | 24.06% |
| Gross profit margin | | 76.58% | | 75.94% |
| | | | | |
| Restaurant operating expenses: | | | | |
| Labor and related costs | | 34.90% | | 35.78% |
| Restaurant supplies | | 2.63% | | 2.44% |
| Credit card discounts | | 1.90% | | 1.91% |
| Utilities | | 2.90% | | 2.90% |
| Occupancy costs | | 6.78% | | 6.19% |
| Depreciation and amortization | | 5.93% | | 5.94% |
| Other restaurant operating expenses | | 8.76% | | 7.56% |
| Total restaurant operating expenses | | 63.80% | | 62.73% |
| | | | | |
| Restaurant operating profit margin | | 12.78% | | 13.21% |
| Benihana Inc. and Subsidiaries |
| Balance Sheet Data |
| (Unaudited) |
| |
| (in thousands) |
| | | 19-Jul-09 | | 29-Mar-09 |
| | | | | |
| Assets | | | | |
| Cash and cash equivalents | | $ | 2,253 | | $ | 3,891 |
| Other current assets | | | 13,677 | | | 13,621 |
| Total current assets | | | 15,930 | | | 17,512 |
| | | | | |
| Property and equipment, net | | | 202,916 | | | 203,299 |
| Goodwill | | | 18,020 | | | 18,020 |
| Other assets | | | 18,031 | | | 18,296 |
| | | | | |
| | | $ | 254,897 | | $ | 257,127 |
| | | | | |
| Liabilities and Stockholders’ Equity | | | | |
| Other current liabilities | | $ | 35,373 | | $ | 36,566 |
| Total current liabilities | | | 35,373 | | | 36,566 |
| | | | | |
| Long-term debt—bank | | | 30,855 | | | 33,351 |
| Other liabilities | | | 15,264 | | | 15,237 |
| Total liabilities | | | 81,492 | | | 85,154 |
| | | | | |
| Convertible preferred stock | | | 19,562 | | | 19,536 |
| Total stockholders’ equity | | | 153,843 | | | 152,437 |
| | | | | |
| | | $ | 254,897 | | $ | 257,127 |
