MIAMI, Aug. 25, 2011 /PRNewswire/ -- Benihana Inc.
(NASDAQ: BNHN; BNHNA), operator of the nation's largest chain of
Japanese theme and sushi restaurants, today reported results for
its 16-week fiscal first quarter 2012, ended July 17, 2011.
(Logo: http://photos.prnewswire.com/prnh/20110513/NY02073LOGO
)
Highlights for the fiscal first quarter 2012 relative to the
year-ago quarter include:
- Company-wide comparable restaurant sales increased by 6.0%, led
by the flagship Benihana teppanyaki concept, which reported 8.6%
comparable restaurant sales growth;
- Total revenues increased 5.7% to $106.5
million from $100.8 million,
driven by restaurant sales growth;
- Net income was $1.9 million, or
$0.10 per basic and diluted common
share, compared to $1.6 million, or
$0.08 per basic and diluted common
share; and
- Strong cash flow from operations allowed for full repayment of
borrowings under line of credit during the quarter.
Richard C. Stockinger, Chairman, President and Chief Executive
Officer of Benihana Inc., said, "We are extremely pleased with
Benihana's continued progress in the first quarter of fiscal 2012.
This is our sixth consecutive quarter of comparable store sales
growth, and unit-level income was up substantially year-over-year.
By continuing to enhance the guest experience and introduce
operational efficiencies, we have improved key metrics: traffic,
sales and profitability. With our strong balance sheet and
experienced management team at the restaurant, regional and
corporate levels, we believe we are in an excellent position to
continue building on these gains."
Mr. Stockinger continued, "Since launching the Benihana
Teppanyaki Renewal Program in fiscal 2010, we have dramatically
improved the guest experience at our namesake restaurants. We have
driven traffic growth and built awareness of the improvements to
food, service and atmosphere at all of our Benihana restaurants
through successful marketing and promotional programs. In only two
years, we have grown The Chef's Table program, which builds brand
loyalty through value-based promotions (including communicating our
monthly Chef's Special offer), from zero to 1.9 million members.
The Chef's Table is also increasing our non-weekend traffic, with
certificates valid only Monday through Thursday. Kabuki Kids, a value-based promotion aimed at
children, now has approximately 200,000 members and is helping to
bring more and more family groups to Benihana.
"Our strategy and focus on increasing the efficiency of our
operations Company-wide has also resulted in improved
profitability," Mr. Stockinger said. "During the first quarter of
fiscal 2012, we implemented a review of the RA Sushi business in
order to enhance the guest experience and identify other
opportunities for operational improvement. We are also continuing
to drive traffic at RA Sushi with 'The Hook Up,' a program through
which guests receive a complimentary $20 gift certificate on their half-birthdays. We
also launched a program at Haru called 'Access,' which provides
members with exclusive monthly offers. Membership in both
'The Hook Up' and 'Access' is growing as we continue to market them
aggressively."
Mr. Stockinger concluded, "Few restaurant companies our size
have the brand recognition and loyalty of Benihana, and we are now
in a great position to begin leveraging those assets. As a result
of our improved operating model and profitability, we have
eliminated all of our outstanding borrowings and increased our
financial flexibility. In response to economic conditions, we chose
to reduce growth-related capital expenditures in fiscal 2011, but
based on our ability to generate cash flow, the available borrowing
capacity under our line of credit, the availability of reasonably
priced real estate, and the attractive prospects for growth in the
full-service Asian and sushi dining categories, we expect to resume
restaurant unit expansion soon. Drawing on an expansive proprietary
demographic study that we completed in fiscal 2011, we are now
looking for potential new locations for our teppanyaki and RA Sushi
concepts. In light of all this, we are extremely excited about our
ability to deliver increased shareholder value over the long
term."
Fiscal First Quarter 2012 Results
For the fiscal first quarter of 2012, total revenues increased
$5.8 million, or 5.7%, to
$106.5 million, compared to
$100.8 million in the fiscal first
quarter of 2011. Total restaurant sales increased 5.7% to
$106.0 million, compared to
$100.2 million in the same period in
fiscal 2011.
Company-wide comparable restaurant sales increased 6.0%,
including increases of 8.6% at Benihana teppanyaki and 2.4% at RA
Sushi and a decrease of 1.9% at Haru. During the quarter, Benihana
teppanyaki represented approximately 67% of consolidated restaurant
sales, while RA Sushi and Haru accounted for 24% and 9% of
consolidated restaurant sales, respectively. There were a total of
1,541 store-operating weeks in the fiscal first quarter of 2012
compared to a total of 1,552 store-operating weeks in the fiscal
first quarter of 2011.
Franchise fees and royalties were $0.6
million during the first fiscal quarter of 2012 and were
relatively consistent between years.
Cost of food and beverage sales for the fiscal first quarter of
2012 increased year-over-year $1.7
million or 0.3% when expressed as a percentage of restaurant
sales. The dollar increase primarily reflects higher restaurant
sales during the fiscal first quarter while the increase as a
percentage of restaurant sales reflects an increase in the cost of
commodities in excess of modest price increases at each
concept.
Restaurant operating expenses increased $2.5 million, but decreased 1.1% as a percentage
of total restaurant sales due to improved labor efficiencies,
primarily related to overtime management.
Total income from restaurant segment operations increased
$1.6 million, or 16.9%, over the
prior year, led by a $1.9 million, or
31.8%, increase for the Benihana concept. The RA Sushi
concept saw a $0.1 million, or 3.6%,
improvement in operating income, while the Haru concept saw a
$0.3 million decrease in operating
income, due primarily to a loss of leverage on the 1.9% comparable
sales decline coupled with the previously noted commodity cost
increases.
General and administrative costs increased $1.8 million or 1.2% when expressed as a
percentage of total revenues in the fiscal first quarter of 2012
compared to the same prior-year period. The increase consisted
primarily of a $1.5 million increase
in incremental stock-based compensation year-over-year, related to
restricted share awards granted to certain executives pursuant to
their employment agreements. The fiscal first quarter of 2012
included approximately $1.1 million
of non-recurring expenses related to costs associated with the
upcoming special stockholders' meeting and the Board's assessment
of strategic alternatives. The comparable prior-year quarter
included approximately $1.3 million
of non-recurring expenses related to certain management transition
initiatives and the Board's exploration of strategic
alternatives.
Income from operations decreased $0.2
million, or 6.6%, for the fiscal first quarter of 2012
compared to the same period in the prior fiscal year. Interest
expense was $0.2 million lower in the
current-year quarter due to reduced average borrowing levels, and
the effective tax rate was 11.6% as compared to 24.6% in the
prior-year period due to the favorable impact of an increased level
of tax credits (e.g., FICA tip credit) in the current year.
Net income for the fiscal first quarter of 2012 was $1.9 million, or $0.10 per basic and diluted share, compared to
net income of $1.6 million, or
$0.08 per basic and diluted share, in
the same quarter of fiscal 2011, and reflected a 5.9% increase in
the diluted share count in the current year.
Capital expenditures were $1.6
million in the first quarter of fiscal 2012 as compared to
$1.3 million in the comparable
prior-year quarter. We expect full-year capital expenditures
to be approximately $16 million as we
complete certain unit remodels.
About Benihana
Headquartered in Miami,
Benihana Inc. (NASDAQ GS: BNHN, BNHNA) is the nation's leading
operator of Japanese theme and sushi restaurants with 96
restaurants nationwide, including 63 Benihana restaurants, eight
Haru sushi restaurants and 25 RA Sushi restaurants. In addition, 18
franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. To learn more about Benihana Inc.
and its three restaurant concepts, please view the corporate video
at www.benihana.com/about/video.
Safe Harbor Statement
Except for the historical matters contained herein, statements
in this press release are forward-looking and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that forward-looking
statements involve risks and uncertainties that may affect the
business and prospects of Benihana, including, without limitation:
risks related to Benihana's business strategy, including the
Renewal Program and marketing programs; risks related to Benihana's
ability to operate successfully in the current challenging economic
environment; risks related to Benihana's efforts to strengthen its
Benihana Teppanyaki concept and build its RA Sushi and Haru brands;
and other risks and uncertainties that may cause results to differ
materially from those set forth in the forward-looking statements.
Past performance may not be indicative of future results. Although
Benihana believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
there can be no assurance that its expectations will be realized.
In addition to the risks and uncertainties set forth above,
investors should consider the risks and uncertainties discussed in
Benihana's filings with the Securities and Exchange Commission,
including, without limitation, the risks and uncertainties
discussed under the heading "Risk Factors" in such filings.
Benihana does not undertake any obligation to publicly update any
forward-looking statement to reflect events or circumstances after
the date on which any such statement is made or to reflect the
occurrence of unanticipated events.
Benihana Inc. and
Subsidiaries
Sales by Concept
(In thousands)
|
|
|
Four Periods
Ended
|
|
|
|
|
July
17,
|
|
July
18,
|
|
Percentage
|
|
|
2011
|
|
2010
|
|
Change
|
|
Comparable restaurant sales by
concept:
|
|
|
|
|
|
|
Teppanyaki
|
$
70,711
|
|
$
65,119
|
|
8.6%
|
|
RA Sushi
|
25,309
|
|
24,727
|
|
2.4%
|
|
Haru
|
9,943
|
|
10,139
|
|
-1.9%
|
|
Total comparable restaurant
sales
|
$
105,963
|
|
$
99,985
|
|
6.0%
|
|
|
|
|
|
|
|
Benihana Inc. and
Subsidiaries
Condensed Consolidated
Statements of Earnings
(Unaudited)
(In thousands)
|
|
|
Four Periods
Ended
|
|
|
July
17,
|
|
|
July
18,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Restaurant
sales
|
$
105,963
|
99.5%
|
|
$
100,227
|
99.5%
|
|
Franchise fees and
royalties
|
581
|
0.5%
|
|
542
|
0.5%
|
|
Total revenues
|
106,544
|
100.0%
|
|
100,769
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant Expenses:
|
|
|
|
|
|
|
Cost of food and beverage
sales
|
26,296
|
24.7%
|
|
24,595
|
24.4%
|
|
Restaurant operating
expenses
|
66,718
|
62.6%
|
|
64,238
|
63.7%
|
|
Restaurant opening
costs
|
-
|
0.0%
|
|
8
|
0.0%
|
|
General and administrative
expenses
|
11,166
|
10.5%
|
|
9,397
|
9.3%
|
|
Total operating
expenses
|
104,180
|
97.8%
|
|
98,238
|
97.5%
|
|
|
|
|
|
|
|
|
Income (Loss) from
operations
|
2,364
|
2.2%
|
|
2,531
|
2.5%
|
|
Interest expense,
net
|
160
|
0.2%
|
|
397
|
0.4%
|
|
|
|
|
|
|
|
|
Income (Loss) before income
taxes
|
2,204
|
2.1%
|
|
2,134
|
2.1%
|
|
Income tax expense
(benefit)
|
255
|
0.2%
|
|
525
|
0.5%
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
1,949
|
1.8%
|
|
1,609
|
1.6%
|
|
Less: Accretion of
preferred stock issuance costs and
|
|
|
|
|
|
|
preferred stock
dividends
|
289
|
|
|
333
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common stockholders
|
$
1,660
|
|
|
$
1,276
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Share
|
|
|
|
|
|
|
Basic earnings (loss) per
common share
|
$
0.10
|
|
|
$
0.08
|
|
|
Diluted earnings (loss)
per common share
|
$
0.10
|
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding
|
|
|
|
|
|
|
Basic
|
16,323
|
|
|
15,441
|
|
|
Diluted
|
16,374
|
|
|
15,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benihana Inc. and
Subsidiaries
Condensed Balance Sheet
Data
(Unaudited)
(In thousands)
|
|
|
July
17,
|
March
27,
|
|
|
2011
|
2011
|
|
Assets
|
|
|
|
Current Assets:
|
|
|
|
Cash and cash
equivalents
|
$
4,000
|
$
4,038
|
|
Other current
assets
|
12,925
|
11,133
|
|
Total current assets
|
16,925
|
15,171
|
|
|
|
|
|
Property and
equipment, net
|
178,641
|
182,992
|
|
Goodwill
|
6,896
|
6,896
|
|
Deferred income tax asset, net
and other long term assets
|
15,856
|
15,823
|
|
Total assets
|
$
218,318
|
$
220,882
|
|
|
|
|
|
Liabilities, Convertible
Preferred Stock and Stockholders’ Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Other current
liabilities
|
33,256
|
33,467
|
|
Total current
liabilities
|
33,256
|
33,467
|
|
|
|
|
|
Borrowings under line of
credit
|
-
|
5689
|
|
Long term liabilities
|
15,359
|
15,293
|
|
Total liabilities
|
48,615
|
54,449
|
|
|
|
|
|
Convertible preferred
stock
|
12,321
|
19,710
|
|
|
|
|
|
Stockholders’
Equity
|
|
|
|
Total stockholders’
equity
|
157,382
|
146,723
|
|
Total liabilities, convertible
preferred stock and stockholders' equity
|
$
218,318
|
$
220,882
|
|
|
|
|
Contact
Jeremy Fielding/James David
Kekst and Company
(212) 521-4800
SOURCE Benihana Inc.