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 12, 1997
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, 3,557,366 shares outstanding at November 12, 1997
Class A common stock $.10 par value, 2,517,133 shares outstanding at
November 12, 1997
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS FOR THE
SEVEN PERIODS ENDED OCTOBER 12, 1997
TABLE OF CONTENTS
PAGE
PART I - Financial Information
Consolidated Balance Sheets at October 12, 1997
(unaudited) and March 30, 1997 1
Consolidated Statements of Operations
(unaudited) for the Three and Seven Periods
Ended October 12, 1997 and October 13, 1996 2 - 3
Consolidated Statement of Stockholders' Equity
(unaudited) for the Seven Periods Ended
October 12, 1997 4
Consolidated Statements of Cash Flows
(unaudited) for the Seven Periods Ended
October 12, 1997 and October 13, 1996 5
Notes to the Consolidated Financial
Statements 6 - 7
Management's Discussion and Analysis of the
Financial Condition and Results of
Operations 8 - 11
PART II - Other Information 12
Exhibit 11 13
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART I - Financial Information
<TABLE>
CONSOLIDATED BALANCE SHEETS
All dollar amounts in thousands, except per share amounts
<CAPTION>
(Unaudited)
October 12, March 30,
1997 1997
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Current assets:
Cash and equivalents $ 7,213 $ 7,043
Receivables (net of allowance for doubtful amount of
$0 in October 1997 and $27 in March 1997)
Trade 279 218
Other 58 324
- -------------------------------------------------------------------------------------------------------------------
Total Receivables 337 542
Inventories (Note 2) 2,955 3,148
Prepaid expenses (Note 3) 992 837
- -------------------------------------------------------------------------------------------------------------------
Total Current Assets 11,497 11,570
Property and equipment, net 26,268 25,416
Deferred income taxes, net 1,355 1,487
Other assets (Note 4) 2,399 2,089
- -------------------------------------------------------------------------------------------------------------------
$41,519 $40,562
- -------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 6,565 $ 7,018
Current maturities of long-term debt and
obligations under capital leases 1,422 1,436
- -------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 7,987 8,454
Long-term debt 4,785 5,271
Due to affiliates - long term 233 312
Obligations under capital leases 3,526 3,771
Stockholders' Equity:
Preferred stock - $1.00 par value;
authorized - 5,000,000 shares, issued
and outstanding - 1,500 shares and
2,000 shares, respectively 2 2
Common stock - $.10 par value;
convertible into Class A Common, authorized -
12,000,000 shares, issued and outstanding -
3,557,366 shares and 3,557,366 shares,
respectively 356 356
Class A common stock - $.10 par value;
authorized - 20,000,000 shares, issued
and outstanding - 2,517,133 shares and
2,516,300 shares, respectively 252 252
Additional paid-in capital 14,984 14,978
Retained earnings 9,510 7,282
Treasury stock - 9,177 shares at cost (116) (116)
- -------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity 24,988 22,754
- -------------------------------------------------------------------------------------------------------------------
$41,519 $40,562
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-1-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Three Periods Ended
October 12, October 13,
1997 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $21,044 $19,019
Other income 148 157
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 21,192 19,176
Costs and Expenses
Cost of restaurant food and beverage sales 5,467 4,833
Restaurant expenses 12,844 11,839
General and administrative expenses 1,152 1,052
Interest expense 160 216
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 19,623 17,940
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 1,569 1,236
Income tax provision 429 395
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 1,140 $ 841
- -------------------------------------------------------------------------------------------------------------------
Net Income Per Common Share (Note 5)
Primary and fully diluted earnings per common share $ .18 $ .13
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-2-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Seven Periods Ended
October 12, October 13,
1997 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $48,444 $44,423
Other income 337 358
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 48,781 44,781
Costs and Expenses
Cost of restaurant food and beverage sales 12,497 11,352
Restaurant expenses 29,372 27,383
General and administrative expenses 2,535 2,378
Interest expense 377 516
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 44,781 41,629
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 4,000 3,152
Income tax provision 1,220 1,008
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 2,780 $ 2,144
- -------------------------------------------------------------------------------------------------------------------
Net Income Per Common Share (Note 5)
Primary and fully diluted earnings per common share $ .44 $ .34
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-3-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
All dollar amounts in thousands
<CAPTION>
Class A Additional
Preferred Common Common Paid-in Retained Treasury
Stock Stock Stock Capital Earnings Stock
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance, March 30, 1997 $2 $356 $252 $14,978 $7,282 ($116)
Net income 2,780
Preferred stock redeemed (500)
Dividend on preferred stock (52)
Exercise of stock options 6
- -------------------------------------------------------------------------------------------------------------------
Balance, October 12, 1997 $2 $356 $252 $14,984 $9,510 ($116)
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-4-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
All dollar amounts in thousands
<CAPTION>
Seven Periods Ended
October 12, October 13,
1997 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities
Net income $2,780 $2,144
Adjustments to reconcile net income to net
Cash provided by operating activities:
Depreciation and amortization 1,403 1,413
Change in operating assets and liabilities
that provided or (used) cash:
Accounts receivable 204 (71)
Inventories 193 (703)
Prepaid expenses (154) 150
Other assets (405) 19
Accounts payable and accrued expenses (453) 131
Deferred taxes 132
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 3,700 3,083
- -------------------------------------------------------------------------------------------------------------------
Investing activities
Expenditures for property and equipment (2,160) (864)
Investment in limited partnership (253)
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) investing activities (2,160) (1,117)
- -------------------------------------------------------------------------------------------------------------------
Financing Activities
Repayment of long-term debt and obligations
under capital leases (824) (844)
Dividend paid on preferred stock (52 (66)
Preferred stock redeemed (500)
Proceeds from issuance of common stock 575
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) financing activities (1,370) (335)
- -------------------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 170 1,631
Cash and cash equivalents, beginning of year 7,043 4,722
- -------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $7,213 $6,353
- -------------------------------------------------------------------------------------------------------------------
Supplemental Cash Flow Information
Cash paid during the seven periods:
Interest $ 375 $ 445
Income taxes 1,614 646
See notes to consolidated financial statements.
</TABLE>
-5-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEVEN PERIODS ENDED OCTOBER 12, 1997 AND OCTOBER 13, 1996
(UNAUDITED)
1. GENERAL
The accompanying consolidated financial statements are unaudited and reflect
all adjustments (consisting only of normal recurring adjustments at October
12, 1997) 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 12, 1997
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. INVENTORIES
<TABLE>
Inventories consist of (in thousands):
<CAPTION>
October 12, March 30,
1997 1997
----------- ---------
<S> <C> <C>
Food and beverage $1,168 $1,243
Supplies 1,787 1,905
------ ------
$2,955 $3,148
====== ======
</TABLE>
3. PREPAID EXPENSES
<TABLE>
Prepaid expenses consist of (in thousands):
<CAPTION>
October 12, March 30,
1997 1997
----------- ---------
<S> <C> <C>
Prepaid insurance $ 227 $ 547
Construction advances 423 222
Other 342 68
------ ------
$ 992 $ 837
====== ======
</TABLE>
-6-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
4. OTHER ASSETS
<TABLE>
Other assets consist of (in thousands):
<CAPTION>
October 12, March 30,
1997 1997
----------- ---------
<S> <C> <C>
Lease acquisition costs $ 457 $ 490
Cash surrender value of officer's
life insurance 305 305
Premium on liquor licenses 651 651
Long-term note receivable 174 196
Security deposits 159 162
Preopening expenses 149 46
Other 504 239
------ ------
$2,399 $2,089
====== ======
</TABLE>
5. NET INCOME PER COMMON SHARE
The primary net income per common share was computed by using the
weighted average number of shares and dilutive common stock equivalents
(6,133,251 shares for the seven periods ended in October 1997 and
6,074,660 shares for the seven periods ended in October 1996) of Common
Stock and Class A Common Stock outstanding as of October 12, 1997. In
addition to the weighted average number of shares and dilutive common
stock equivalents, the calculation of fully diluted earnings per share
includes 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 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. 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 achieved revenue, net income and earnings per share growth when
compared to the comparable periods of the prior year. Restaurant revenue
increased 10.6%, net income increased 35.6% and earnings per share increased
38.5% for the three periods and restaurant revenue increased 9.1%, net income
increased 29.7% and earnings per share increased 29.4% for the seven periods,
when compared to the comparable periods in the prior year. The Company continues
to enjoy sustained increases in patronage. The aforementioned increase in
patronage has led to the increase in revenues, net income and per share
earnings.
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 12, October 13, October 12, October 13,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net restaurant sales $21,044 $19,019 $48,444 $44,423
Other income 148 157 337 358
------- ------- ------- -------
Total Revenues $21,192 $19,176 $48,781 $44,781
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Three Periods Ended Seven Periods Ended
October 12, October13, October 12, October 13,
1997 1996 1997 1996
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Amount of change in total revenues
from previous year $ 2,016 $ 1,477 $ 4,000 $ 3,411
Percentage of change from the
previous year 10.5% 8.3% 8.9% 8.2%
</TABLE>
Three and Seven Periods Ended October 12, 1997 compared to October 13, 1996 --
Restaurant revenues continued to increase in the three and seven periods ended
October 12, 1997 as compared to the equivalent periods ended October 13, 1996.
The Company's trend of increases in comparable per unit sales continued during
the three periods increasing 8.4% in the current three periods as compared to
7.3% in the previous three periods and increasing 7.9% in the current seven
periods as compared to 7.2% in the previous seven periods. Patronage continues
to increase resulting from the opening of two new restaurants, 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 four of the Company's restaurants. The Company serves sushi at all
of its restaurants and currently operates a sushi bar at 26 of its 40
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 12, October 13, October 12, October 13,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
COST AS A PERCENTAGE OF
RESTAURANT SALES:
Cost of restaurant food and
beverage sales 26.0% 25.4% 25.8% 25.6%
Restaurant expenses 61.0% 62.2% 60.6% 61.6%
General and administrative expenses 5.5% 5.5% 5.2% 5.4%
AMOUNT OF CHANGE FROM
PREVIOUS YEAR (IN THOUSANDS):
Cost of restaurant food and
beverage sales $634 $172 $1,145 $245
Restaurant expenses $1,005 $970 $1,989 $2,369
General and administrative expenses $100 $ 53 $157 $197
PERCENTAGE CHANGE FROM
PREVIOUS YEAR:
Cost of restaurant food and
beverage sales 13.1% 3.7% 10.1% 2.2%
Restaurant expenses 8.5% 8.9% 7.3% 9.5%
General and administrative expenses 9.5% 5.3% 6.6% 9.0%
</TABLE>
Three and Seven Periods Ended October 12, 1997 compared to October 13, 1996 --
The cost of food and beverage sales increased in total dollar amount for the
three and seven periods and increased when expressed as a percentage of sales.
The increase is a result of higher seafood costs in the current three and seven
periods. Restaurant expenses increased in total dollar amount but decreased when
expressed as a percentage of sales for the three and seven periods as compared
to the previous comparable periods. The increase in dollar amount resulted from
those costs such as credit card discounts and percentage rent expense which are
directly related to the increase in sales.
General and administrative costs increased nominally in total dollar amount for
the three and seven periods. As a result of the generally fixed nature of
general and administrative costs, such expenses when expressed as a percentage
of sales remained constant for the three periods and decreased for the seven
periods as compared to the previous comparable periods.
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. Additionally, interest income increased as a result of
interest earned.
The effective federal income tax rate increased to 28% for fiscal 1998 as
compared to 27% in fiscal 1997. The income tax provision for both the current
year and prior year reflect a net federal tax credit for FICA taxes on reported
tip income.
-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.
The Company expects that it will continue to make expenditures to improve the
appearance and efficiency of its restaurants and also expand capacity at its
existing restaurants. The Company has signed leases for a sushi restaurant in
Ft. Lauderdale, Florida and for a traditional Benihana restaurant in Ontario,
California, both opening spring of 1998.
On July 22, 1997, the Company entered into an Agreement and Plan of Merger ("the
Agreement") under which the Company will acquire Rudy's Restaurant Group, Inc.
("Rudy's"). Rudy's owns and operates nine teppanyaki-style Japanese restaurants
in Florida, Ohio, Michigan, Minnesota, Pennsylvania and Washington D.C. under
the names Samurai and Kyoto. The acquisition price will be approximately $5 per
share for each outstanding common share of Rudy's which, together with severance
and non-competition payments to Rudy's personnel to be paid in connection with
the acquisition, results in a total purchase price of approximately $20 million.
Pursuant to the Agreement, the Company has agreed to grant a five-year option to
purchase 200,000 shares of the company's Class A Common Stock at an exercise
price of $8.00 per share to the chief executive officer of Rudy's. The Company
received a commitment from its current lender, First Union National Bank, for a
$12,000,000 term loan facility and a $15,000,000 revolving credit facility, to
refinance its existing senior debt, to consummate the acquisition of Rudy's and
to provide funds for working capital and capital expenditures. The closing of
the acquisition is expected to take place during the third quarter ending
January 4, 1998.
The terms of the proposed term loan facility call for the first eight quarterly
principal payments to be $250,000, the next eight quarterly principal payments
to be $500,000 and the last eight quarterly payments to be $750,000. The
revolving credit facility will have a maturity of six years from the date of the
loan. Both facilities will bear interest at a rate per annum of LIBOR plus an
applicable margin based on the Company's ratio of earnings before interest,
taxes, depreciation and amortization to funded debt. All loans and reimbursement
obligations under the revolving and term loan facilities shall be secured by a
perfected first priority lien on all tangible and intangible assets of the
Company. The facilities will contain restrictions on additional indebtedness and
capital expenditures, among other restrictive covenants, comparable to those
currently in place with the existing credit facility.
-11-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART II - Other Information
Item 4. Results of Vote of Security Holders.
(a) The registrant held its annual meeting of stockholders on
July 31, 1997.
(b) The following directors were elected at the meeting:
John E. Abdo and Norman Becker
Other directors whose term of office continue after the
meeting are set forth below:
Rocky H. Aoki, Joel A. Schwartz, Robert S. Greenberg,
Taka Yoshimoto, Darwin C. Dornbush
(c) At the annual meeting, holders of the registrant's Class A
Common Stock voted to elect one Class II director for a term
of three years and the holders of the registrant's Common
Stock voted to elect one Class II director for a term of three
years. In addition, holders of the registrant's Common Stock
and Class A Common Stock, voting together as a single class,
voted for the ratification of Deloitte & Touche LLP to serve
as the registrant's independent certified public accounants
for the fiscal year ending March 29, 1998.
At the meeting, the following votes for and against, as well
as the number of abstentions and broker non-votes were
recorded for each matter as set forth below:
<TABLE>
<CAPTION>
WITHHOLD
MATTER FOR AGAINST ABSTAIN AUTHORITY NON-VOTES
------ --- ------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
Election of Directors:
Class II
John E. Abdo 2,308,235 6,766
Norman Becker 3,471,863 13,042
Ratification of
Independent Public
Accountants 5,782,073 11,716 6,117
</TABLE>
Item5. On July 22, 1997, the Company entered into an Agreement and
Plan of Merger with Rudy's Restaurant Group, Inc., an
owner/operator of nine teppanyaki-style restaurants. (See Part I,
Managements' Discussion and Analysis of Financial Condition and
Results of Operations for a description of the Agreement).
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11 Calculation of Earnings Per Share.
Exhibit 27 Financial Data Schedule.
(b) None.
-12-
<PAGE>
EXHIBIT 11
<TABLE>
BENIHANA INC.
CALCULATION OF PRIMARY EARNINGS PER SHARE
<CAPTION>
Seven Periods Ended
October 12, October 13,
1997 1996
----------- -----------
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 6,073,891 5,998,133
DILUTIVE EFFECT OF STOCK OPTIONS
OUTSTANDING USED IN CALCULATION
OF EARNINGS PER SHARE 59,360 76,257
---------- ----------
6,113,251 6,074,660
========== ==========
NET INCOME $2,780,282 $2,143,679
EFFECT OF DIVIDENDS ON PREFERRED
STOCK (53,055) (64,615)
---------- ----------
NET INCOME $2,727,227 $2,079,064
========== ==========
EARNINGS PER SHARE $.44 $.34
==== ====
CALCULATION OF FULLY DILUTED EARNINGS PER SHARE
<CAPTION>
Seven Periods Ended
October 12, October 13,
1997 1996
----------- -----------
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 6,073,891 5,998,133
CONVERTIBLE PREFERRED STOCK 255,230 300,000
DILUTIVE EFFECT OF STOCK OPTIONS
OUTSTANDING USED IN CALCULATION
OF EARNINGS PER SHARE 59,360 76,257
---------- ----------
6,388,481 6,374,660
========== ==========
NET INCOME $2,780,282 $2,143,679
========== ==========
EARNINGS PER SHARE $.44 $.34
==== ====
</TABLE>
-13-
<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 12, 1997 /s/ Joel A. Schwartz
-------------------- --------------------
Joel A. Schwartz
President
/s/ Michael R. Burris
---------------------
Michael R. Burris
Chief Financial Officer
-14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the October
12, 1997 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-29-1998 MAR-29-1998
<PERIOD-START> JUL-21-1997 MAR-31-1997
<PERIOD-END> OCT-12-1997 OCT-12-1997
<EXCHANGE-RATE> 1 1
<CASH> 7,213 7,213
<SECURITIES> 0 0
<RECEIVABLES> 337 337
<ALLOWANCES> 0 0
<INVENTORY> 2,955 2,955
<CURRENT-ASSETS> 11,497 11,497
<PP&E> 26,268 26,268
<DEPRECIATION> 29,606 29,606
<TOTAL-ASSETS> 41,519 41,519
<CURRENT-LIABILITIES> 7,987 7,987
<BONDS> 8,544 8,544
0 0
2 2
<COMMON> 608 608
<OTHER-SE> 24,378 24,378
<TOTAL-LIABILITY-AND-EQUITY> 41,519 41,519
<SALES> 21,044 48,444
<TOTAL-REVENUES> 21,192 48,781
<CGS> 5,467 12,497
<TOTAL-COSTS> 12,844 29,372
<OTHER-EXPENSES> 1,152 2,535
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 160 377
<INCOME-PRETAX> 1,569 4,000
<INCOME-TAX> 429 1,220
<INCOME-CONTINUING> 1,140 2,780
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,140 2,780
<EPS-PRIMARY> .18 .44
<EPS-DILUTED> .18 .44
</TABLE>
