SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarter Ended October 13, 1996
or,
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File No. 0-12644
Benihana Inc.
(Exact name of registrant as specified in its charter)
Delaware 65-0538630
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8685 Northwest 53rd Terrace, Miami, Florida 33166
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (305) 593-0770
None
Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate by number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common stock $.10 par value, 3,527,066 shares outstanding at November 4,1996
Class A common stock $.10 par value, 2,516,300 shares outstanding
at November 4, 1996
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART I - Financial Information
<TABLE>
CONSOLIDATED BALANCE SHEETS (See Note 2)
All dollar amounts in thousands, except per share amounts
<CAPTION>
(Unaudited)
October 13, March 31,
1996 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Current assets
Cash and equivalents $ 6,353 $ 4,722
Receivables (net of allowance for doubtful amounts of
$62 in October 1996 and $57 in March 1996, respectively)
Trade 253 155
Affiliates 44 91
Other 26 6
- -------------------------------------------------------------------------------------------------------------------
Total Receivables 323 252
Inventories (Note 3) 2,536 1,833
Prepaid expenses (Note 4) 770 920
- -------------------------------------------------------------------------------------------------------------------
Total Current Assets 9,982 7,727
Property and equipment, net 24,446 24,915
Due from affiliates, long term 211 232
Deferred income taxes 1,577 1,577
Other assets (Note 5) 1,982 1,806
- -------------------------------------------------------------------------------------------------------------------
$ 38,198 $36,257
- -------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 6,670 $ 6,539
Current maturities of long-term debt and
obligations under capital leases 1,463 1,488
- -------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 8,133 8,027
Long-term debt 5,618 6,104
Due to affiliates - long term 376 439
Obligations under capital leases 4,092 4,361
Stockholders' Equity
Preferred stock - $1.00 par value;
authorized - 5,000,000 shares, issued
and outstanding - 2,000 shares 2 2
Common stock - $.10 par value;
convertible, authorized - 12,000,000
shares, issued and outstanding -
3,527,066 shares and 3,516,066 shares,
respectively 353 352
Class A common stock - $.10 par value;
authorized - 20,000,000 shares, issued
and outstanding - 2,516,300 shares and
2,316,300 shares, respectively 252 232
Additional paid-in capital 14,839 14,285
Retained earnings 4,533 2,455
- -------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity 19,979 17,326
- -------------------------------------------------------------------------------------------------------------------
$ 38,198 $36,257
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-1-
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS (See Note 2)
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Three Periods Ended
October 13, October 8,
1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $19,019 $17,601
Other income 157 98
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 19,176 17,699
Costs and Expenses
Cost of restaurant food and beverage sales 4,833 4,661
Restaurant expenses 11,839 10,869
General and administrative expenses 1,052 999
Interest expense 216 283
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 17,940 16,812
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 1,236 887
Income tax provision 395 198
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 841 $ 689
- -------------------------------------------------------------------------------------------------------------------
Pro Forma Net Income Per Common Share (Note 6)
Primary and fully diluted earnings per common share $ 0.13 $ 0.11
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-2-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS (See Note 2)
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Seven Periods Ended
October 13, October 8,
1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $44,423 $41,105
Other income 358 265
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 44,781 41,370
Costs and Expenses
Cost of restaurant food and beverage sales 11,352 11,107
Restaurant expenses 27,383 25,014
General and administrative expenses 2,378 2,181
Interest expense 516 679
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 41,629 38,981
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 3,152 2,389
Income tax provision 1,008 589
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 2,144 $ 1,800
- -------------------------------------------------------------------------------------------------------------------
Pro Forma Net Income Per Common Share (Note 6)
Primary and fully diluted earnings per common share $ .34 $ .29
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-3-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (See Note 2)
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Class A Additional
Preferred Common Common Paid-in Retained
Stock Stock Stock Capital Earnings
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, March 31, 1996 $2 $352 $232 $14,285 $2,455
Net income 2,144
Dividend on preferred stock (66)
Exercise of stock options and
warrants 1 20 554
- -------------------------------------------------------------------------------------------------------------------
Balance, October 13, 1996 $2 $353 $252 $14,839 $4,533
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-4-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (See Note 2)
(UNAUDITED)
All dollar amounts in thousands
<CAPTION>
Seven Periods Ended
October 13, October 8,
1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities
Net income $ 2,144 $ 1,800
Adjustments to reconcile net income to net
Cash provided by operating activities:
Depreciation and amortization 1,413 1,148
Deferred taxes 420
Change in operating assets and liabilities that provided or (used) cash:
Accounts receivable (71) 32
Inventories (703) (228)
Prepaid expenses 150 135
Other assets 19 (1)
Accounts payable and accrued expenses 131 (1,620)
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 3,083 1,686
- -------------------------------------------------------------------------------------------------------------------
Investing activities
Expenditures for property and equipment (864) (1,228)
Investment in Limited Partnership (253)
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) investing activities (1,117) (1,228)
- -------------------------------------------------------------------------------------------------------------------
Financing Activities
Repayment of long-term debt and obligations
under capital leases (844) (1,834)
Proceeds from issuance of long-term debt 319
Net cash distributed to BOT (110)
Dividend paid (66) (48)
Proceeds from issuance of common stock 575 37
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) financing activities (335) (1,636)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 1,631 (1,178)
Cash and cash equivalents, beginning of year 4,722 1,854
- -------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 6,353 $ 676
- -------------------------------------------------------------------------------------------------------------------
Supplemental Cash Flow Information
Cash paid during the seven periods:
Interest $ 445 $ 467
Income taxes 646 113
See notes to consolidated financial statements.
</TABLE>
-5-
BENIHANA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEVEN PERIODS ENDED OCTOBER 13, 1996 AND OCTOBER 8, 1995
(UNAUDITED)
1. GENERAL
The accompanying consolidated financial statements are unaudited and reflect
all adjustments (consisting only of normal recurring adjustments at October
13, 1996) which are, in the opinion of management, necessary for a fair
presentation of financial position and results of operations. The results of
operations for the seven periods (twenty-eight weeks) ended October 13, 1996
are not necessarily indicative of the results to be expected for the full
year. Certain information and footnotes normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The Company's fiscal year
consists of 13 four-week accounting periods.
2. BASIS OF PRESENTATION AND ACQUISITION
The Company's financial statements and the discussion and data presented
below reflect a reorganization pursuant to which the Company acquired
seventeen restaurants, four license agreements and the U.S. trademarks of
Benihana of Tokyo, Inc. and became the successor to Benihana National Corp.
through the merger of BNC and a wholly owned subsidiary of the Company
through a share-for-share exchange of common equity. Accordingly, the
Company's financial statements for the period ended July 16, 1995 have been
restated retroactively to include the historical accounts of BNC and the BOT
Restaurants without adjustment. The reorganization has been accounted for in
a manner similar to a pooling of interests since the parties to the
transaction were under common control. In connection with the acquisition,
the Company paid $3,000,000 in cash and issued 76,905 shares of Common
Stock, 2,000 shares of $1.00 par value Class A Convertible Preferred Stock,
and a 7 1/2% promissory note in the amount of $650,000.
3. INVENTORIES
<TABLE>
Inventories consist of (in thousands):
<CAPTION>
October 13, March 31,
1996 1996
---------- ---------
<S> <C> <C>
Food and beverage $ 967 $ 565
Supplies 1,569 1,268
------ -------
$2,536 $1,833
====== ======
</TABLE>
-6-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
4. PREPAID EXPENSES
Prepaid expenses consist of (in thousands):
<CAPTION>
October 13, March 31,
1996 1996
---------- ---------
<S> <C> <C>
Prepaid insurance $ 240 $ 589
Prepaid Rent 182 7
Prepaid advertising 3 35
Other 345 289
-------- -------
$ 770 $ 920
======== =======
</TABLE>
<TABLE>
5. OTHER ASSETS
Other assets consist of (in thousands):
<CAPTION>
October 13, March 31,
1996 1996
----------- ---------
<S> <C> <C>
Lease acquisition costs $ 518 $ 551
Cash surrender value of officer's
Life insurance 270 270
Investment in Limited Partnership 253
Premium on liquor licenses 651 651
Security deposits 174 175
Preopening expenses 15 47
Other 101 112
-------- -------
$ 1,982 $ 1,806
======== =======
</TABLE>
6. PRO FORMA NET INCOME PER COMMON SHARE
The pro forma primary net income per common share was computed by using
the weighted average number of shares and dilutive common stock
equivalents (6,074,660 shares in October 1996 and 5,982,727 shares in
October 1995) of Common Stock and Class A Common Stock outstanding as
of October 13, 1996. In addition to the weighted average number of
shares and dilutive common stock equivalents, the calculation of fully
diluted earnings per share include 300,000 shares issuable upon
conversion of the Preferred Stock. Fully diluted earnings per share
assumes that the Preferred Stock was converted into Class A Common
Stock as of the beginning of the fiscal year.
-7-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
The Company's financial statements and the discussion and data presented below
reflect a reorganization completed in May 1995 pursuant to which the Company
acquired seventeen restaurants, four license agreements and the U.S. trademarks
of Benihana of Tokyo, Inc. and became the successor to Benihana National Corp.
through the merger of BNC and a wholly owned subsidiary of the Company through a
share-for-share exchange of common equity.
The Company's revenues consist of sales of food and beverages sold in each of
the owned restaurants and licensing fees received from licensees. Cost of
restaurant food and beverage sold represents the direct cost of the ingredients
for the prepared food and beverages sold. Restaurant expenses consist of direct
and indirect labor, occupancy costs, advertising and other costs that are
directly attributed to each restaurant location.
Restaurant revenues and expenses are dependent upon a number of factors
including the number of restaurants in operation and restaurant patronage.
Revenues are also dependent on the average check amount and expenses are
additionally dependent upon the costs of food and beverages sold, average wage
rates, marketing costs and the costs of interest and administering restaurant
operations.
The Company's revenues and net income surpassed the comparable periods in the
previous year. Restaurant revenue increased by 8.3% and net income increased by
22.1% for the three periods and restaurant revenue increased 8.2% and net income
increased 19.1% for the seven periods ended October 13, 1996. Revenues continue
to increase as a result of sustained increases in patronage and the resulting
revenue improvements are reflected in increased net income and per share
earnings. In the previous year's three and seven periods, the Company provided
for federal income taxes net of benefits derived from net operating loss
carryforwards. These net operating loss carryforwards were exhausted in the
previous year and accordingly the Company is providing for federal income taxes
at full statutory rates less income tax credits for FICA taxes paid on reported
employee tip income.
REVENUES
The amounts of sales and the changes in amount and percentage change in amount
of sales from the previous fiscal year are shown in the following tables.
-8-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
<CAPTION>
Three Periods Ended Seven Periods Ended
October 13, October 8, October 13, October 8,
1996 1995 1996 1995
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Net restaurant sales $19,019 $17,601 $44,423 $41,105
Other income 157 98 358 265
------- ------- ------- -------
$19,176 $17,699 $44,781 $41,370
======= ======= ======= =======
Three Periods Ended Seven Periods Ended
October 13, October 8, October 13, October 8,
1996 1995 1996 1995
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Amount of change in total revenues
from previous year $1,418 $1,238 $3,318 $3,050
Percentage change for the
previous year 8.1% 7.6% 8.1% 8.0%
</TABLE>
Three and Seven Periods Ended October 13, 1996 compared to October 8, 1995 --
Restaurant revenues continued to increase in the three and seven periods ended
October 13, 1996 as compared to the equivalent periods ended October 8, 1995.
The Company's trend of increases in comparable per unit sales continued during
the three and seven periods. Patronage continues to increase resulting from
favorable consumer response to the Company's advertising programs, from physical
improvements made to several restaurant properties, including the opening of
sushi bars at several of the Company's restaurants.
COSTS AND EXPENSES
Costs of restaurant sales, which are generally variable with sales, directly
increased with changes in revenues for the three and seven periods. The
following table reflects the proportion that the various elements of costs and
expenses bore to sales and the changes in amounts and percentage changes in
amounts from the previous year's three and seven periods.
-9-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
<CAPTION>
Three Periods Ended Seven Periods Ended
October 13, October 8, October 13, October 8,
1996 1995 1996 1995
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
COST AS A PERCENTAGE OF
RESTAURANT SALES:
Cost of restaurant food and
beverage sales 25.4% 26.5% 25.6% 27.0%
Restaurant expenses 62.2% 61.8% 61.6% 60.9%
General and administrative expenses 5.5% 5.7% 5.4% 5.3%
AMOUNT OF CHANGE FROM
PREVIOUS YEAR (IN THOUSANDS):
Cost of restaurant food and
beverage sales $172 ($73) $245 $107
Restaurant expenses $970 $734 $2,369 $1,618
General and administrative expenses $53 $34 $197 $61
PERCENTAGE CHANGE FROM
PREVIOUS YEAR:
Cost of restaurant food and
beverage sales 3.7% (1.5%) 2.2% 1.0%
Restaurant expenses 8.9% 7.2% 9.5% 6.9%
General and administrative expenses 5.3% 3.5% 9.0% 2.7%
</TABLE>
Three and Seven Periods Ended October 13, 1996 Compared to Three and Seven
Periods Ended October 8, 1995 -- The cost of food and beverage sales increased
slightly in total dollar amount for the three and seven periods, but decreased
when expressed as a percentage of sales for both the three and seven periods.
Favorable long-term purchasing contracts have been made for certain seafood
items covering most of the Company's restaurants. Additionally, the Company
obtained more favorable pricing from several vendors for other food products and
services at several of the 17 restaurants that were purchased from BOT.
Restaurant expenses increased in absolute amount and expressed as a percentage
of sales for the three and seven periods. The increase was due to an increase in
labor costs attributable to the additional personnel required for the extended
hours of operations in some locations. Additionally, advertising and promotion
expense increased during the current year's three and seven periods.
General and administrative costs increased in total amount for the three and
seven periods, but decreased in the three periods and increased slightly in the
seven periods when expressed as a percentage of sales. The increase is
attributable to an estimate recorded in the current year for bonus awards as
outlined in the Benihana Incentive Compensation Plan adopted by the Company in
fiscal 1996.
Interest costs decreased in the three and seven periods of the current year as
compared to the three and seven periods of the prior year. The decrease is
attributable to the decrease in total principal balances outstanding over that
of the prior year.
The effective income tax rate increased from 26% in the prior year to 32% in the
current year due to the utilization of net operating loss carryforwards in the
prior year.
-10-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company does not require significant amounts of inventory or receivables.
Therefore, the Company, as is typical with many restaurant companies, does not
have to provide financing for such amounts and operates with a minimum amount of
working capital. During the seven periods, the Company improved its working
capital position to $1,849,000 from a working capital deficiency of $300,000 at
March 31, 1996.
The Company has no material commitments for future capital improvements, but the
Company expects that it will continue to make expenditures to improve the
appearance and efficiency of its restaurants. The Company has signed leases for
two Benihana Grill locations in Dallas, Texas and Sugarland (Houston), Texas
opening in early fiscal 1997. The Company believes that it has sufficient cash
resources from operating cash flows to provide for anticipated capital
improvements as well as for construction and opening costs without additional
borrowings.
-11-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11 Calculation of Earnings Per Share
Exhbit 27 Financial Data Schedule
(b) None
-12-
<PAGE>
EXHIBIT 11
<TABLE>
BENIHANA INC.
CALCULATION OF PRIMARY EARNINGS PER SHARE
<CAPTION>
Seven Periods Ended
October 13, October 8,
1996 1995
----------- ----------
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 5,998,133 5,815,545
DILUTIVE EFFECT OF WARRANTS
OUTSTANDING 101,793
DILUTIVE EFFECT OF STOCK OPTIONS
OUTSTANDING USED IN CALCULATION
OF EARNINGS PER SHARE 76,257 65,389
---------- ----------
6,074,660 5,982,727
========== ==========
NET INCOME $2,143,679 $1,800,326
EFFECT OF DIVIDENDS ON PREFERRED
STOCK ISSUED IN CONNECTION WITH
THE REORGANIZATION (64,615) (64,615)
PROFORMA INTEREST ON DEBT INCURRED
TO FINANCE ACQUISITION OF BOT
RESTAURANTS (36,250)
PROFORMA INTEREST ON DEBT ISSUED
TO BOT TO FINANCE ACQUISITION OF
BOT RESTAURANTS (6,806)
INCOME TAX EFFECT ON PROFORMA
AMOUNTS OF INTEREST ON
ACQUISITION DEBT INDEBTEDNESS 17,222
---------- ----------
PROFORMA NET INCOME $2,079,660 $1,709,878
========== ==========
EARNINGS PER SHARE $.34 $.29
==== ====
</TABLE>
-13-
<PAGE>
EXHIBIT 11
<TABLE>
BENIHANA INC.
CALCULATION OF FULLY DILUTED EARNINGS PER SHARE
<CAPTION>
Seven Periods Ended
October 13, October 8,
1996 1995
----------- ----------
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 5,998,133 5,815,545
CONVERTIBLE PREFERRED STOCK 300,000
DILUTIVE EFFECT OF WARRANTS
OUTSTANDING 101,793
DILUTIVE EFFECT OF STOCK OPTIONS
OUTSTANDING USED IN CALCULATION
OF EARNINGS PER SHARE 76,257 65,389
---------- ----------
6,374,660 5,982,727
========== ==========
NET INCOME $2,143,679 $1,800,326
EFFECT OF DIVIDENDS ON PREFERRED
STOCK ISSUED IN CONNECTION WITH
THE REORGANIZATION (64,615)
PROFORMA INTEREST ON DEBT INCURRED
TO FINANCE ACQUISITION OF BOT
RESTAURANTS (36,250)
PROFORMA INTEREST ON DEBT ISSUED
TO BOT TO FINANCE ACQUISITION OF
BOT RESTAURANTS (6,806)
INCOME TAX EFFECT ON PROFORMA
AMOUNTS OF INTEREST ON
ACQUISITION DEBT INDEBTEDNESS 17,222
---------- ----------
PROFORMA NET INCOME $2,143,679 $1,709,878
========== ==========
EARNINGS PER SHARE $.34 $.29
==== ====
</TABLE>
-14-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Benihana Inc.
(Registrant)
Date November 4, 1996 /s/ Joel A. Schwartz
-------------------- --------------------
Joel A. Schwartz
President
/s/ Michael R. Burris
---------------------
Michael R. Burris
Chief Financial Officer
-15-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
October 13, 1996 Financial Statements and is qualified in its entirety by
reference to such Financial Statements.
</LEGEND>
<CIK> 0000935226
<NAME> BENIHANA INC.
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> MAR-31-1996 MAR-31-1996
<PERIOD-START> JUL-22-1996 APR-01-1996
<PERIOD-END> OCT-13-1996 OCT-13-1996
<EXCHANGE-RATE> 1 1
<CASH> 6,353 6,353
<SECURITIES> 0 0
<RECEIVABLES> 323 323
<ALLOWANCES> 62 62
<INVENTORY> 2,536 2,536
<CURRENT-ASSETS> 9,982 9,982
<PP&E> 24,446 24,446
<DEPRECIATION> 27,479 27,479
<TOTAL-ASSETS> 38,198 38,198
<CURRENT-LIABILITIES> 8,133 8,133
<BONDS> 10,086 10,086
0 0
2 2
<COMMON> 605 605
<OTHER-SE> 19,372 19,372
<TOTAL-LIABILITY-AND-EQUITY> 19,979 19,979
<SALES> 19,019 44,423
<TOTAL-REVENUES> 19,176 44,781
<CGS> 4,833 11,352
<TOTAL-COSTS> 11,839 27,383
<OTHER-EXPENSES> 1,052 2,378
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 216 516
<INCOME-PRETAX> 1,236 3,152
<INCOME-TAX> 395 1,008
<INCOME-CONTINUING> 841 2,144
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 841 2,144
<EPS-PRIMARY> .13 .34
<EPS-DILUTED> .13 .34
</TABLE>
