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 January 3, 1999
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, 3,571,616 shares outstanding at January 28, 1999
Class A Common Stock $.10 par value, 2,562,576 shares outstanding
at January 28, 1999
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS FOR THE
TEN PERIODS ENDED JANUARY 3, 1999
TABLE OF CONTENTS
PAGE
PART I - Financial Information
Consolidated Balance Sheets at January 3, 1999
(unaudited) and March 29, 1998 1
Consolidated Statements of Operations
(unaudited) for the Three and Ten Periods
Ended January 3, 1999 2 - 3
Consolidated Statement of Stockholders' Equity
(unaudited) for the Ten Periods Ended
January 3, 1999 4
Consolidated Statements of Cash Flows
(unaudited) for the Ten Periods Ended
January 3, 1999 5
Notes to the Consolidated Financial
Statements 6 - 8
Management's Discussion and Analysis of the
Financial Condition and Results of
Operations 9 - 11
PART II - Other Information 12
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART I - Financial Information
CONSOLIDATED BALANCE SHEETS
<TABLE>
(In thousands, except per share information)
<CAPTION>
(Unaudited)
January 3, March 29,
1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Current assets:
Cash and equivalents $ 1,918 $ 1,169
Receivables (net of allowance for doubtful accounts of $33
in January 1999 and $0 in March 1998):
Trade 243 202
Other 366 183
- -------------------------------------------------------------------------------------------------------------------
Total Receivables 609 385
Inventories (Note 2) 3,165 3,768
Prepaid expenses (Note 3) 1,337 758
- -------------------------------------------------------------------------------------------------------------------
Total Current Assets 7,029 6,080
Property and equipment, net 36,171 32,998
Deferred income taxes, net 3,451 3,781
Goodwill, net 12,269 12,663
Other assets (Note 4) 2,334 2,635
- -------------------------------------------------------------------------------------------------------------------
$61,254 $58,157
- -------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $10,600 $ 9,323
Current maturities of long-term debt and
obligations under capital leases 2,231 1,939
- -------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 12,831 11,262
Long-term debt 13,247 15,233
Due to affiliates - long term 51 174
Obligations under capital leases 2,877 3,265
Stockholders' Equity:
Preferred stock - $1.00 par value;
authorized - 5,000,000 shares, issued
and outstanding - 700 shares and
1,000 shares, respectively 1 1
Common stock - $.10 par value;
convertible into Class A Common, authorized - 12,000,000 shares, issued
and outstanding - 3,571,616 shares and 3,571,116 shares,
respectively 357 357
Class A common stock - $.10 par value;
authorized - 20,000,000 shares, issued and outstanding
2,562,576 shares and 2,517,463 shares, respectively 256 252
Additional paid-in capital 14,598 14,600
Retained earnings 17,152 13,129
Treasury stock - 9,177 shares at cost (116) (116)
- -------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity 32,248 28,223
- -------------------------------------------------------------------------------------------------------------------
$61,254 $58,157
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-1-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
(In thousands, except per share information)
<CAPTION>
Three Periods Ended
January 3, January 4,
1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $27,723 $23,939
Other income 176 157
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 27,899 24,096
Costs and Expenses
Cost of restaurant food and beverage sales 7,211 6,353
Restaurant expenses 16,122 13,746
General and administrative expenses 1,413 1,384
Interest expense 370 271
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 25,116 21,754
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 2,783 2,342
Income tax provision 1,030 780
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 1,753 $ 1,562
- -------------------------------------------------------------------------------------------------------------------
Earnings Per Share (Note 5)
Basic earnings per common share $ .29 $ .25
Diluted earnings per common share $ .28 $ .24
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-2-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
(In thousands, except per share information)
<CAPTION>
Ten Periods Ended
January 3, January 4,
1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $88,452 $72,383
Other income 612 494
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 89,064 72,877
Costs and Expenses
Cost of restaurant food and beverage sales 23,333 18,850
Restaurant expenses 53,773 43,118
General and administrative expenses 4,535 3,919
Interest expense 1,295 648
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 82,936 66,535
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 6,128 6,342
Income tax provision 2,062 2,000
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 4,066 $ 4,342
- -------------------------------------------------------------------------------------------------------------------
Earnings Per Share (Note 5)
Basic earnings per common share $ .66 $ .70
Diluted earnings per common share $ .64 $ .68
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-3-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
(In thousands, except per share information)
<CAPTION>
Class A Additional Total
Preferred Common Common Paid-in Retained Treasury Stockholders'
Stock Stock Stock Capital Earnings Stock Equity
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, March 29, 1998 $1 $357 $252 $14,600 $13,129 ($116) $28,223
Net income 4,066 4,066
Dividend on preferred stock (43) (43)
300 shares of preferred stock
converted into 45,113
shares of Class A
Common Stock 4 (4)
Exercise of stock options 2 2
- ----------------------------------------------------------------------------------------------------------------------------------
Balance, January 3, 1999 $1 $357 $256 $14,598 $17,152 ($116) $32,248
==================================================================================================================================
See notes to consolidated financial statements
</TABLE>
-4-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
(In thousands)
<CAPTION>
Ten Periods Ended
January 3, January 4,
1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities:
Net income $4,066 $4,342
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,042 2,144
Deferred income taxes 330 132
Change in operating assets and liabilities that provided (used) cash:
Accounts receivable (224) 277
Inventories 603 148
Prepaid expenses (580) (54)
Other assets 38 (369)
Accounts payable and accrued expenses 1,277 (2,720)
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 8,552 9,340
- -------------------------------------------------------------------------------------------------------------------
Investing activities:
Acquisition of Rudy's Restaurant Group, Inc.,
net of cash acquired (18,777)
Expenditures for property and equipment (5,556) (3,523)
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) investing activities (5,556) (22,300)
- -------------------------------------------------------------------------------------------------------------------
Financing Activities:
Borrowings of long-term debt 18,000
Proceeds from issuance of common stock 2 59
Repayment of long-term debt and obligations
under capital leases (2,206) (7,653)
Dividend paid on preferred stock (43) (74)
Preferred stock redeemed (500)
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (2,247) 9,832
- -------------------------------------------------------------------------------------------------------------------
Net (decrease)increase in cash and cash equivalents 749 (3,128)
Cash and cash equivalents, beginning of year 1,169 7,043
- -------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $1,918 $3,915
===================================================================================================================
Supplemental Cash Flow Information:
Cash paid during the ten periods:
Interest $1,095 $ 505
Income taxes 1,763 2,245
Non-Cash Investing and Financing Activities:
Fair market value of warrant issued $ 563
Non-competition agreement 684
During the current fiscal year, 300 shares of Preferred Stock
were converted into 45,113 shares of Class A Common Stock
See notes to consolidated financial statements.
</TABLE>
-5-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TEN PERIODS ENDED JANUARY 3, 1999 AND JANUARY 4, 1998
(UNAUDITED)
1. GENERAL
The accompanying consolidated financial statements are unaudited and reflect
all adjustments (consisting only of normal recurring adjustments at January
3, 1999) 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 ten periods (forty weeks) ended January 3, 1999 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.
During the quarter, the Company changed its method of accounting on certain
direct costs associated with opening new restaurants to conform with
Financial Accounting Standards Board's Statement of Position 98-5,
"Reporting of the Costs of Start-Up Activities," that require such costs to
be expensed as incurred. The effect of the change was not material to the
Company's results of operations.
2. INVENTORIES
<TABLE>
Inventories consist of (in thousands):
<CAPTION>
January 3, March 29,
1999 1998
---------- ---------
<S> <C> <C>
Food and beverage $1,239 $1,574
Supplies 1,926 2,194
------ ------
$3,165 $3,768
====== ======
</TABLE>
3. PREPAID EXPENSES
<TABLE>
Prepaid expenses consist of (in thousands):
<CAPTION>
January 3, March 29,
1999 1998
---------- --------
<S> <C> <C>
Prepaid insurance $ 438 $ 445
Prepaid rent 366 10
Prepaid income taxes 437
Other 96 303
------- -------
$1,337 $ 758
====== =======
</TABLE>
-6-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
4. OTHER ASSETS
<TABLE>
Other assets consist of (in thousands):
<CAPTION>
January 3, March 29,
1999 1998
--------- --------
<S> <C> <C>
Lease acquisition costs $ 382 $ 429
Cash surrender value of key man
life insurance 306 306
Premium on liquor licenses 923 923
Long-term note receivable 127 158
Deferred financing charges 337 386
Security deposits 175 172
Preopening expenses 84
Other 84 177
------ ------
$2,334 $2,635
====== ======
</TABLE>
5. EARNINGS PER SHARE
Basic earnings per common share is computed by dividing net income
available to common shareholders by the weighted average number of common
shares outstanding during each period. The diluted earnings per common
share computation includes dilutive common share equivalents issued under
the Company's various stock option plans and dilutive convertible preferred
stock.
The following data shows the amounts (in thousands) used in computing
earnings per share and the effect on income and the weighted average number
of shares of dilutive potential common stock.
<TABLE>
<CAPTION>
Ten Periods Ended
January 3, January 4,
1999 1998
---------- ---------
<S> <C> <C>
Income from operations $4,066 $4,342
Less preferred dividends (43) (74)
------ ------
Income for computation of basic
earnings per common share 4,023 4,268
Convertible preferred stock 43 74
------ ------
Income for computation of diluted
earnings per common share $4,066 $4,342
====== ======
Ten Periods Ended
January 3, January 4,
1999 1998
---------- ---------
<S> <C> <C>
Weighted average number of common
shares used in basic EPS 6,094 6,077
Effect of dilutive securities:
Stock options 151 69
Convertible preferred stock 143 246
------ ------
Weighted number of common shares
and dilutive potential common stock
used in diluted EPS 6,388 6,392
====== =====
</TABLE>
-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 franchise fees received from franchisees. 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 commodity costs, average wage rates, marketing costs
and the costs of interest and administering restaurant operations.
The Company's revenues, net income and diluted earnings per share increased in
the current three periods when compared to the equivalent three periods in the
prior year. The improved three period results reflect sales growth in
traditional restaurants and an increasing contribution from the Samurai and
Kyoto restaurants acquired December 1, 1997 with the purchase of Rudy's
Restaurant Group, Inc. (Rudy's).
For the current ten periods, revenues increased while net income and diluted
earnings per share decreased when compared to the previous comparable period.
The increase in revenues was due in part to the purchase last year of nine
Samurai and Kyoto restaurant units acquired with the purchase of Rudy's. Net
income and diluted earnings per share for the ten periods have been impacted by
the operating results of the nine restaurants acquired from Rudy's and the
amortization of goodwill and interest on acquisition indebtedness. The Company
has made physical improvements and instituted marketing programs to conform
those nine units acquired from Rudy's to traditional Benihana appearance and
quality of service standards. The results of these changes had a negative impact
on earnings in the earlier part of the current year but have produced improved
results in the recent three periods.
-8-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
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.
<TABLE>
<CAPTION>
Three Periods Ended Ten Periods Ended
January 3, January 4, January 3, January 4,
1999 1998 1999 1998
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Net restaurant sales $27,723 $23,939 $88,452 $72,383
Other income 176 157 612 494
------- ------- ------- -------
$27,899 $24,096 $89,064 $72,877
======= ======= ======= =======
Three Periods Ended Ten Periods Ended
January 3, January 4, January 3, January 4,
1999 1998 1999 1998
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Amount of change in total
revenues from previous year $ 3,803 $ 4,270 $16,187 $ 8,270
Percentage of change from the
previous year 15.8% 21.5% 22.2% 12.8%
</TABLE>
Three and Ten Periods Ended January 3, 1999 compared to January 4, 1998 --
Restaurant revenues continued to increase in the three and ten periods ended
January 3, 1999 as compared to the equivalent periods ended January 4, 1998. The
increase in revenues attributable to the nine restaurants through the
acquisition of Rudy's represented $1,483,000 of the increase for the three
periods and $9,705,000 for the ten periods and an increase in customer counts
and menu prices in restaurant units opened longer than a year represented
$2,018,000 of the increase for the three periods and $5,202,000 for the ten
periods. Also, contributing to the increase is the opening in June 1998 of Sushi
Doraku by Benihana, a kaiten sushi restaurant operating in Ft. Lauderdale,
Florida and a traditional restaurant opened in December 1998 operating in
Ontario, California. Same store sales increased 9.4% and 7.5% when compared to
the prior year's three and ten periods, respectively.
COSTS AND EXPENSES
Costs of restaurant sales, which are generally variable with sales, directly
increased with changes in revenues for the three and ten 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 ten periods.
-9-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Periods Ended Ten Periods Ended
January 3, January 4, January 3, January 4,
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
COST AS A PERCENTAGE OF
RESTAURANT SALES:
Cost of restaurant food and
beverage sales 26.0% 26.5% 26.4% 26.0%
Restaurant expenses 58.2% 57.4% 60.8% 59.6%
General and administrative
expenses 5.1% 5.8% 5.1% 5.4%
AMOUNT OF CHANGE FROM
PREVIOUS YEAR (IN THOUSANDS):
Cost of restaurant food and
beverage sales $ 858 $1,275 $ 4,482 $2,420
Restaurant expenses $2,376 $2,053 $10,655 $4,042
General and administrative expenses $ 29 $ 600 $ 617 $ 757
PERCENTAGE CHANGE FROM
PREVIOUS YEAR:
Cost of restaurant food and
beverage sales 13.5% 25.1% 23.8% 14.7%
Restaurant expenses 17.3% 17.6% 24.7% 10.3%
General and administrative expenses .2% 76.5% 15.7% 23.9%
</TABLE>
Three and Ten Periods Ended January 3, 1999 compared to January 4, 1998 -- The
cost of food and beverage sales increased in dollar amount in the current three
and ten periods and decreased in the current three periods and increased in the
current ten periods when expressed as a percentage of sales compared to
equivalent periods in the prior year. The nine restaurants acquired from Rudy's
represented $388,000 of the increase for the three periods and $2,583,000 of the
increase for the ten periods. Increased restaurant traffic including Rudy's
represented $873,000 of the increase for the three periods and $4,236,000 of the
increase for the ten periods. Commodity costs increases, principally seafood
costs, which had increased in the earlier part of the current year decreased
during the current three periods when compared to the previous comparable
period.
Restaurant expenses increased in dollar amount and when expressed as a
percentage of sales in the current three and ten periods. The increase in dollar
amount is mostly attributable to the nine restaurants acquired from Rudy's. Also
contributing to the increase were increased occupancy costs and other operating
costs directly related to the increase in sales.
General and administrative costs increased in total dollar amount and decreased
when expressed as a percentage of sales for both the current three and ten
periods. The increase is principally due to the amortization of goodwill of
$118,000 and $395,000 in the current three and ten periods, respectively,
associated with the acquisition of Rudy's. The decrease when expressed as a
percentage of sales is due to the aforementioned increased in sales.
Interest costs increased in the current three and ten periods when compared to
the comparable period of the prior year. The increase is attributable to
additional interest expense associated with increased borrowings used for the
acquisition of Rudy's.
-10-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The Company's effective income tax rate increased in the ten periods to 33.6%
from 31.6 % in the prior year's ten periods. The increase resulted from the use
of state net operating loss carryforwards exhausted in the prior year.
LIQUIDITY AND CAPITAL RESOURCES
The Company does not require significant amounts of inventory or receivables,
and, as is typical of many restaurant companies, the Company does not have to
provide financing for such assets and operates with a minimum amount or deficit
of working capital.
The Company requires capital principally for the construction and development of
new restaurants, acquisitions of other restaurant businesses, and the
refurbishment of existing restaurant units. On December 1, 1997, the Company
completed the acquisition of Rudy's for approximately $20,000,000 of cash. In
addition, a warrant for 200,000 shares of the Company's Class A Stock was issued
at an exercise price of $8.00 per share. The acquisition was financed, in part,
with the proceeds of a new credit agreement (the "Credit Agreement") consisting
of a $12,000,000 term loan and a $15,000,000 revolving line of credit. Interest
under the Credit Agreement accrues at the Company's option at either prime rate
plus a margin up to 1.0% or at LIBOR plus a margin of 1.0% to 2.25%. The
applicable interest rate margin varies with the Company's leverage ratio
(defined as EBITDA divided by funded indebtedness). Principal of the term loan
is payable at a rate of $1,000,000 annually through March 2000, $2,000,000
annually through March 2002, and $3,000,000 annually through March 2004. The
revolving line of credit is payable in 2004. The proceeds under the Credit
Agreement were also used to retire outstanding borrowings under a previous loan
agreement in the approximate amount of $5,700,000. The Credit Agreement
restricts the Company from making dividend payments and purchases of the
Company's common equity and limits capital expenditures to $8,600,000 for fiscal
1999 and $8,000,000 annually thereafter plus amounts in excess of certain
operating cash flow targets and amounts of cash provided from offerings of
common equity, if any. The Company is restricted by the Credit Agreement as to
the aggregate amount of its redeemable preferred stock that it can redeem to an
amount not to exceed $1,000,000 in fiscal year ending 1999 only. The Credit
Agreement also requires the Company to achieve certain ratios of operating cash
flow to debt and other financial benchmarks.
As of January 3, 1999, the Company had available $12,500,000 under the revolving
line of credit facility. Management believes that the amount available under the
revolving facility together with internally generated funds from operations
provide sufficient cash resources for anticipated capital improvements as well
as construction of new restaurants.
The Company has entered into a lease for a new restaurant to be operated under
the Company's new sushi concept, Sushi Doraku by Benihana in Chicago, Illinois.
Due to delays in obtaining a building permit, this new restaurant is now
projected to open during the summer of 1999.
-11-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
YEAR 2000
The well publicized "Year 2000" issue relates to computer programs that were
written using only two digits rather than four digits to define the applicable
year in date sensitive programs in calculating and processing computerized data.
The Company has completed an assessment of the Year 2000 issue and will have to
upgrade portions of its hardware and software so that its systems will function
correctly. The Company has also made inquiries of its material suppliers as to
year 2000 compliance and does not believe it will be materially impacted.
Management believes that the costs and the operational impact associated with
the Year 2000 compliance will not be material to the Company's financial
condition.
Forward Looking Information
Statements in this report concerning the Company's business outlook or future
economic performance, anticipated profitability, revenues, expenses or other
financial items, together with other statments that are not historical facts,
are "forward-looking statements" as that term is defined under Federal
Securities Laws. "Foward-looking statements" are subject to risks, uncertainties
and other factors which could cause actual results to differ materially from
those stated in such statements. Such risks, uncertainties and factors include,
but are not limited to, changes in customers' tastes and preferences, acceptance
of the Company's concepts in new locations, industry cyclicality, fluctuations
in customer demand, the seasonal nature of the business, fluctuations on
commodities costs, the ability to complete construction of new units in a timely
manner, obtaining governmental permits on a resonably timely basis, and general
economic conditions, as well as other risks detailed in the Company's filings
with the Securities and Exchange Commission.
-12-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART II - Other Information
Item 5. None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K - None
-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 January 28, 1999 /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 January
3, 1999 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 9-MOS
<FISCAL-YEAR-END> MAR-28-1999 MAR-28-1999
<PERIOD-START> OCT-12-1998 MAR-30-1998
<PERIOD-END> JAN-03-1999 JAN-03-1999
<EXCHANGE-RATE> 1 1
<CASH> 1918 1918
<SECURITIES> 0 0
<RECEIVABLES> 609 609
<ALLOWANCES> 0 0
<INVENTORY> 3,165 3,165
<CURRENT-ASSETS> 7,029 7,029
<PP&E> 36,171 36,171
<DEPRECIATION> 32,812 32,812
<TOTAL-ASSETS> 61,254 61,254
<CURRENT-LIABILITIES> 12,831 12,831
<BONDS> 16,175 16,175
0 0
1 1
<COMMON> 613 613
<OTHER-SE> 31,634 31,634
<TOTAL-LIABILITY-AND-EQUITY> 60,254 60,254
<SALES> 27,723 88,452
<TOTAL-REVENUES> 27,899 89,064
<CGS> 7,211 23,333
<TOTAL-COSTS> 16,122 53,773
<OTHER-EXPENSES> 1,413 4,535
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 370 1,295
<INCOME-PRETAX> 2,783 6,128
<INCOME-TAX> 1,030 2,062
<INCOME-CONTINUING> 1,753 4,066
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,753 4,066
<EPS-PRIMARY> .29 .66
<EPS-DILUTED> .28 .64
</TABLE>
