Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation�s
largest chain of Japanese theme and sushi restaurants, today
reported results for its 12-week fiscal fourth quarter and full
year ended March 29, 2009.
Highlights for the Company's 12-week fiscal fourth quarter
2009 relative to the 12-week fiscal fourth quarter 2008
include:
- Total restaurant sales increased
5.4% to $73.6 million
- Opened 2 Benihana teppanyaki
restaurants in Coral Springs, Florida and Columbus, Ohio
- Restaurant operating profit of
$11.4 million, or 15.6% of restaurant sales, compared to $9.7
million, or 13.9% of restaurant sales
- Diluted earnings per share of
$0.06, which included a $0.12 per diluted share compensation
charge, net of tax, related to the retirement of the Company�s
former Chief Executive Officer, compared to diluted earnings per
share of $0.17. Exclusive of this compensation charge, diluted
earnings per share totaled $0.18.
Highlights for the Company's full year 2009 relative to the
full year 2008 include:
- Total restaurant sales increased
2.9% to $303.9 million
- Opened 4 Benihana teppanyaki
restaurants and 4 RA Sushi restaurants
- Restaurant operating profit of
$42.3 million, or 13.9% of restaurant sales, compared to $47.4
million, or 16.0% of restaurant sales
- Diluted loss per share of $0.40,
which included $0.95 per diluted share, net of tax, related to an
impairment charge on the carrying value of its RA Sushi goodwill,
impairment charges on the carrying value of its property and
equipment at five restaurant locations and a compensation charge
for the retirement of the Company�s former Chief Executive Officer,
compared to diluted earnings per share of $0.75. Exclusive of these
charges, diluted earnings per share totaled $0.55.
Richard C. Stockinger, Chief Executive Officer, said, "Despite
the macro slowdown and its ongoing effect on consumer discretionary
spending, our quarterly performance met expectations. While
Company-wide comparable sales improved only modestly on a
sequential basis, we generated our highest restaurant operating
profit margin of fiscal year 2009, along with a 170 basis point
improvement over the same quarter last year. We have been
effectively managing controllable expenses throughout the
organization.�
Mr. Stockinger continued, �Currently, we are in the midst of
reevaluating the overall Benihana teppanyaki experience. Over the
next several months, we will be implementing initiatives focused on
reaching out to our guests in a more unique and personal way,
elevating the offerings of our food and beverages, and raising the
level of our service standards. These steps will enable us to
maximize market share, build stronger, lasting relationships with
our guests, and enhance our business model. Our greatest
opportunities are rooted in taking care of our guests in the best
manner possible. We look forward to providing details on these
initiatives towards the end of the summer. Overall, we are focused
on enhancing shareholder value as well as the financial strength of
the Company by putting our guests first, and we are confident that
we will be well positioned to capitalize on the eventual economic
recovery.�
Fiscal Fourth Quarter 2009 Results
For fiscal fourth quarter of 2009, total revenues increased 5.3%
to $74.0 million, compared to $70.2 million in fiscal fourth
quarter 2008. Total restaurant sales increased 5.4% to $73.6
million in the fourth fiscal quarter 2009 from $69.8 million in the
fourth fiscal quarter 2008.
On a comparable basis, Company-wide comparable restaurant sales
were (10.4%), including (12.1%) at Benihana teppanyaki, (1.2%) at
RA Sushi, and (12.6%) at Haru. There were a total of 1,131
store-operating weeks in the fourth fiscal quarter of 2009 compared
to 971 store-operating weeks in the fourth fiscal quarter of 2008.
During the period, Benihana teppanyaki represented approximately
68.4% of consolidated restaurant sales, while RA Sushi and Haru
accounted for 21.4% and 10.2% of consolidated restaurant sales,
respectively.
Restaurant operating profit for the fiscal fourth quarter of
2009 was $11.4 million, or 15.6% of restaurant sales, compared to
$9.7 million, or 13.9% of restaurant sales a year-ago.
Marketing, general and administrative expenses for the fiscal
fourth quarter of 2009 totaled $9.7 million, or 13.2% of restaurant
sales, compared to $6.8 million, or 9.8% of restaurant sales in the
same period last year. During the fiscal fourth quarter of 2009,
the Company incurred charges totaling $3.2 million ($1.9 million,
net of tax), or a $0.12 impact to diluted earnings per share,
related to the retirement of the Company�s former Chief Executive
Officer.
Inclusive of the aforementioned charges, income from operations
was $1.7 million for the fiscal fourth quarter of 2009, compared to
income from operations of $2.6 million in the prior year
quarter.
Net income for the fiscal fourth quarter of 2009 was $1.2
million, or $0.06 in diluted earnings per share, compared to net
income of $2.9 million, or $0.17 in diluted earnings per share in
the same quarter last year. Net income for the fiscal fourth
quarter of 2009, exclusive of the charges related to the former
CEO�s retirement, was $3.1 million, or $0.18 in diluted earnings
per share.
In the fourth fiscal quarter of 2009, the Company reopened the
Benihana teppanyaki restaurant in Memphis, Tennessee which was
previously destroyed by a fire. In addition, the Company opened
Benihana teppanyaki restaurants in Coral Springs, Florida and
Columbus, Ohio.
Full Year 2009 Results
Total revenues for the 52-week fiscal year 2009 increased 2.9%
to $305.6 million, compared to $296.9 million in the 52-week fiscal
year 2008. Total restaurant sales increased 2.9% to $303.9 million
from $295.2 million.
For fiscal year 2009, Company-wide comparable restaurant sales
decreased (8.0%), including (7.7%) at Benihana teppanyaki, (7.5%)
at RA Sushi, and (10.6%) at Haru. Benihana teppanyaki represented
approximately 68.1% of consolidated restaurant sales, while RA
Sushi and Haru accounted for 20.2% and 11.7% of consolidated
restaurant sales, respectively. There were a total of 4,603
store-operating weeks in fiscal year 2009 compared to 4,115
store-operating weeks in fiscal year 2008.
Net loss for fiscal year 2009 was $5.1 million, or a $0.40
diluted loss per share, compared to net income of $12.8 million, or
$0.75 in diluted earnings per share in fiscal year 2008. Fiscal
year 2009 includes a non-cash impairment charge of $9.6 million,
($5.7 million, net of tax), or $0.37 impact on diluted loss per
share, related to five restaurant locations which remain open, a
non-cash impairment charge of $11.9 million, ($7.0 million, net of
tax), or $0.46 impact on diluted loss per share, related to our RA
Sushi goodwill, along with charges related to the retirement of the
Company�s former Chief Executive Officer of $3.2 million, ($1.9
million, net of tax), or $0.12 impact on diluted loss per share.
Net income for fiscal 2009, exclusive of these charges, was $9.5
million, or $0.55 in diluted earnings per share.
Fiscal Year 2010 Guidance
The Company is providing 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;
- The opening of four new
restaurants, including one Benihana teppanyaki and three RA Sushi
restaurants, all in the first half of the fiscal year. The RA Sushi
in Atlanta, Georgia and the new Benihana teppanyaki in Orlando,
Florida, have already opened;
- Cost of sales are expected to
remain favorable on a percentage basis with the prior fiscal year
through the first quarter of fiscal 2010. However, cost of sales as
a percentage of sales will revert to fiscal 2009 levels with the
rollout of enhanced menu items at Benihana teppyanyaki, 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.
There is currently one additional Benihana teppanyaki restaurant
under development in East Rutherford (Meadowlands), New Jersey.
There is also one additional RA Sushi restaurant under development
in Orlando, Florida. The Company elected to terminate the leases
for the Benihana teppanyaki restaurants that were planned for
Chicago, Illinois and Westwood (Boston), Massachusetts, as well as
the lease for the RA Sushi restaurant that was planned for Westwood
(Boston), Massachusetts.
The above discussion contains certain non-GAAP financial
measures as defined under SEC rules, such as net (loss) income and
diluted (loss) earnings per share, adjusted in each case to exclude
certain items disclosed above. The Company believes that each of
the foregoing non-GAAP financial measures improves the transparency
of the Company�s disclosure, provides a meaningful presentation of
the Company�s results from its ongoing operations excluding the
impact of items not related to the Company�s ongoing operations,
and improves the period-to-period comparability of the Company�s
results from its ongoing operations.
Conference Call Today
The Company will hold a conference call to discuss its fiscal
fourth quarter and full year 2009 results today at 5:00 PM ET.
The conference call can be accessed live over the phone by
dialing 1-888-228-5193, or for international callers,
1-913-981-5526. A replay will be available one hour after the call
through July 6, 2009 and can be accessed by dialing 1-888-203-1112,
or for international callers, 1-719-457-0820; the conference ID is
2672841. 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 97
restaurants nationwide, including 65 Benihana teppanyaki
restaurants, nine Haru sushi restaurants, and 23 RA Sushi Bar
restaurants. Under development at present are four restaurants --
one Benihana teppanyaki restaurants and three RA Sushi restaurants.
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) Three Periods Ended 29-Mar-09 �
30-Mar-08 �
$ Change �
% Change �
Revenues Restaurant sales $ 73,578 $ 69,796 $ 3,782 5.4 %
Franchise fees and royalties 375 � � � 432 � � � (57 ) � -13.2 %
Total revenues 73,953 � � � 70,228 � � � 3,725 � � 5.3 % �
Costs
and Expenses Cost of food and beverage sales 17,122 16,686 436
2.6 % Restaurant operating expenses 45,011 43,406 1,605 3.7 %
Restaurant opening costs 427 752 (325 ) -43.2 % Marketing, general
and administrative expenses 9,717 � � � 6,818 � � � 2,899 � � 42.5
% Total operating expenses 72,277 � � � 67,662 � � � 4,615 � � 6.8
% � Income from operations 1,676 2,566 (890 ) -34.7 % Interest
(expense) income, net (337 ) � � 12 � � � (349 ) � -2908.3 % �
Income before income taxes 1,339 2,578 (1,239 ) -48.1 % Income tax
expense (benefit) 175 � � � (329 ) � � 504 � � -153.2 % �
Net
income 1,164 2,907 (1,743 ) -60.0 % Less: accretion of
preferred stock issuance costs and preferred stock dividends 251 �
� � 250 � � � 1 � � 0.4 % �
Net income attributable to common
stockholders $ 913 � � $ 2,657 � � $ (1,744 ) � -65.6 % �
Earnings Per Share Basic earnings per common share $ 0.06 �
� $ 0.17 � � $ (0.11 ) � -64.7 % Diluted earnings per common share
$ 0.06 � � $ 0.17 � � $ (0.11 ) � -64.7 % �
Weighted Average
Shares Outstanding Basic 15,297 � � � 15,258 � � � 39 � � 0.3 %
Diluted 15,297 � � � 17,252 � � � (1,955 ) � -11.3 %
Benihana
Inc. and Subsidiaries � � � Condensed Consolidated Statements
of Earnings (Unaudited) �
(in thousands except per share
data) Thirteen Periods Ended 29-Mar-09 �
30-Mar-08 �
$ Change �
% Change �
Revenues Restaurant sales $ 303,868 $ 295,190 $ 8,678 2.9 %
Franchise fees and royalties � 1,739 � � 1,756 � � (17 ) � -1.0 %
Total revenues � 305,607 � � 296,946 � � 8,661 � � 2.9 % �
Costs
and Expenses Cost of food and beverage sales 72,646 69,727
2,919 4.2 % Restaurant operating expenses 188,922 178,099 10,823
6.1 % Restaurant opening costs 2,165 3,440 (1,275 ) -37.1 %
Marketing, general and administrative expenses 30,289 28,092 2,197
7.8 % Impairment charges � 21,505 � � - � � 21,505 � � 100.0 %
Total operating expenses � 315,527 � � 279,358 � � 36,169 � � 12.9
% � (Loss) income from operations (9,920 ) 17,588 (27,508 ) -156.4
% Interest (expense) income, net � (848 ) � 270 � � (1,118 ) �
-414.1 % � (Loss) income before income taxes (10,768 ) 17,858
(28,626 ) -160.3 % Income tax (benefit) provision � (5,703 ) �
5,065 � � (10,768 ) � -212.6 % �
Net (loss) income (5,065 )
12,793 (17,858 ) -139.6 % Less: accretion of preferred stock
issuance costs and preferred stock dividends � 1,087 � � 1,084 � �
3 � � 0.3 % �
Net (loss) income attributable to common
stockholders $ (6,152 ) � $ 11,709 � $ (17,861 ) � -152.5 % �
(Loss) Earnings Per Share Basic (loss) earnings per common
share � ($0.40 ) � $0.77 � � ($1.17 ) � -151.9 % Diluted (loss)
earnings per common share � ($0.40 ) � $0.75 � � ($1.15 ) � -153.3
% �
Weighted Average Shares Outstanding Basic � 15,289 � �
15,173 � � 116 � � 0.8 % Diluted � 15,289 � � 17,169 � � (1,880 ) �
-10.9 %
Benihana Inc. and Subsidiaries � � � Sales by
Concept (Unaudited) �
(in thousands) Three Periods
Ended 29-Mar-09 �
30-Mar-08 �
$
Change �
% Change �
Total restaurant sales by
concept: Benihana $ 50,330 $ 49,565 $ 765 1.5 % Haru 7,472
8,553 (1,081 ) -12.6 % RA Sushi � 15,776 � � 11,678 � � 4,098 � �
35.1 % Total restaurant sales $ 73,578 � $ 69,796 � $ 3,782 � � 5.4
% � �
Comparable restaurant sales by concept: Benihana $
43,367 $ 49,363 $ (5,996 ) -12.1 % Haru 7,471 8,552 (1,081 ) -12.6
% RA Sushi � 11,540 � � 11,678 � � (138 ) � -1.2 % Total comparable
restaurant sales $ 62,378 � $ 69,593 � $ (7,215 ) � -10.4 %
Benihana Inc. and Subsidiaries � � � Sales by Concept
(Unaudited) �
(in thousands) Thirteen Periods Ended
29-Mar-09 �
30-Mar-08 �
$ Change �
%
Change �
Total restaurant sales by concept: Benihana $
206,970 $ 215,716 $ (8,746 ) -4.1 % Haru 35,628 34,509 1,119 3.2 %
RA Sushi � 61,270 � � 44,965 � � 16,305 � � 36.3 % Total restaurant
sales $ 303,868 � $ 295,190 � $ 8,678 � � 2.9 % � �
Comparable
restaurant sales by concept: Benihana $ 189,165 $ 204,969 $
(15,804 ) -7.7 % Haru 30,853 34,509 (3,656 ) -10.6 % RA Sushi �
41,500 � � 44,886 � � (3,386 ) � -7.5 % Total comparable restaurant
sales $ 261,518 � $ 284,364 � $ (22,846 ) � -8.0 %
Benihana Inc.
and Subsidiaries � � � � Restaurant Operating Profit
(Unaudited) �
(in thousands) Three Periods Ended
29-Mar-09 �
30-Mar-08 �
$ Change �
%
Change � Restaurant sales $ 73,578 $ 69,796 $ 3,782 5.4 % Cost
of food & beverage sales � 17,122 � � 16,686 � � 436 � � 2.6 %
Gross profit � 56,456 � � 53,110 � � 3,346 � � 6.3 % � Restaurant
operating expenses: Labor and related costs 23,934 24,195 (261 )
-1.1 % Restaurant supplies 1,796 1,674 122 7.3 % Credit card
discounts 1,359 1,311 48 3.7 % Utilities 2,175 2,008 167 8.3 %
Occupancy costs 5,068 4,236 832 19.6 % Depreciation and
amortization 4,382 4,118 264 6.4 % Other restaurant operating
expenses � 6,297 � � 5,864 � � 433 � � 7.4 % Total restaurant
operating expenses � 45,011 � � 43,406 � � 1,605 � � 3.7 % �
Restaurant operating profit $ 11,445 � $ 9,704 � $ 1,741 � � 17.9 %
Benihana Inc. and Subsidiaries � � � � Restaurant Operating
Profit (Unaudited) �
(in thousands) Thirteen Periods
Ended 29-Mar-09 �
30-Mar-08 �
$
Change �
% Change � Restaurant sales $ 303,868 $
295,190 $ 8,678 2.9 % Cost of food & beverage sales � 72,646 �
� 69,727 � � 2,919 � � 4.2 % Gross profit � 231,222 � � 225,463 � �
5,759 � � 2.6 % � Restaurant operating expenses: Labor and related
costs 104,174 100,655 3,519 3.5 % Restaurant supplies 7,339 6,841
498 7.3 % Credit card discounts 5,787 5,592 195 3.5 % Utilities
9,293 7,926 1,367 17.2 % Occupancy costs 19,727 17,620 2,107 12.0 %
Depreciation and amortization 18,121 16,595 1,526 9.2 % Other
restaurant operating expenses � 24,481 � � 22,870 � � 1,611 � � 7.0
% Total restaurant operating expenses � 188,922 � � 178,099 � �
10,823 � � 6.1 % � Restaurant operating profit $ 42,300 � $ 47,364
� $ (5,064 ) � -10.7 %
Benihana Inc. and Subsidiaries � �
Restaurant Operating Margins (Unaudited) �
Three Periods
Ended 29-Mar-09 �
30-Mar-08 � Restaurant sales
100.00 % 100.00 % Cost of food and beverage sales 23.27 % � 23.91 %
Gross profit margin 76.73 % � 76.09 % � Restaurant operating
expenses: Labor and related costs 32.53 % 34.67 % Restaurant
supplies 2.44 % 2.40 % Credit card discounts 1.85 % 1.88 %
Utilities 2.96 % 2.88 % Occupancy costs 6.89 % 6.07 % Depreciation
and amortization 5.96 % 5.90 % Other restaurant operating expenses
8.56 % � 8.40 % Total restaurant operating expenses 61.17 % � 62.19
% � Restaurant operating profit margin 15.55 % � 13.90 % � Benihana
Inc. and Subsidiaries Restaurant Operating Margins (Unaudited) �
Thirteen Periods Ended 29-Mar-09 �
30-Mar-08 �
Restaurant sales 100.00 % 100.00 % Cost of food and beverage sales
23.91 % � 23.62 % Gross profit margin 76.09 % � 76.38 % �
Restaurant operating expenses: Labor and related costs 34.28 %
34.10 % Restaurant supplies 2.42 % 2.32 % Credit card discounts
1.90 % 1.89 % Utilities 3.06 % 2.69 % Occupancy costs 6.49 % 5.97 %
Depreciation and amortization 5.96 % 5.62 % Other restaurant
operating expenses 8.06 % � 7.75 % Total restaurant operating
expenses 62.17 % � 60.33 % � Restaurant operating profit margin
13.92 % � 16.05 %
Benihana Inc. and Subsidiaries � � Balance
Sheet Data (Unaudited) �
(in thousands) 29-Mar-09 �
30-Mar-08 �
Assets Cash and cash equivalents $ 3,891
$ 1,718 Other current assets � 13,621 � � 17,897 Total current
assets 17,512 19,615 � Property and equipment, net 203,299 184,176
Goodwill 18,020 29,900 Other assets � 18,296 � � 7,963 � $ 257,127
� $ 241,654 �
Liabilities and Stockholders� Equity Other
current liabilities $ 36,566 � $ 35,102 Total current liabilities
36,566 35,102 � Long-term debt�bank 33,351 17,422 Other liabilities
� 15,237 � � 12,065 Total liabilities 85,154 64,589 � Convertible
preferred stock 19,536 19,449 Total stockholders� equity � 152,437
� � 157,616 � $ 257,127 � $ 241,654
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