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8-K - FORM 8-K - Ruths Hospitality Group, Inc.ruth20140304_8k.htm
EX-99 - EXHIBIT 99.1 - Ruths Hospitality Group, Inc.ex99-1.htm

 

Exhibit 99.2

 

Non-GAAP Measures

 

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our investor presentation materials, we make reference to the following measures: non-GAAP adjusted earnings before interest, taxes depreciation and amortization (EBITDA), non-GAAP net income (loss) applicable to preferred and common shareholders, non-GAAP diluted earnings per common share and non-GAAP net margin. These non-GAAP measurements have been included as supplemental information. We believe that these measurements represent a useful internal measure of performance. Accordingly, where these non-GAAP measures are provided, it is done so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in assessing our underlying performance. However, because these measures are not determined in accordance with accounting principles generally accepted in the United States, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, the aforementioned measures as presented may not be directly comparable to a similarly titled measures presented by other companies. These non-GAAP measures are presented as supplemental information and not as alternatives to any GAAP measurements.

 

Reconciliation of Non-GAAP Financial Measures - Unaudited

(amounts in thousands, except share data)

 

   

Fiscal Year

 
   

2013

   

2012

   

2011

   

2010

   

2009

   

2008

 

GAAP net income (loss)

  $ 22,489     $ 16,379     $ 19,549     $ 15,957     $ 2,419     $ (53,883 )

Depreciation and amortization expenses

    13,060       14,556       14,859       15,360       16,278       16,213  

Impact of excluding a cumulative adjustment from a change in accounting estimate related to gift card breakage revenue

    1,984       -       -       -       -       -  

Loss on impairment and asset disposals, net

    3,262       4,955       3,478       826       9,928       72,185  

Restructuring expense (benefit)

    -       -       (502 )     (1,683 )     40       8,926  

Gain on settlements

    (2,156 )     (683 )     -       -       -       -  

Interest expense

    1,640       3,172       2,892       4,244       7,754       10,334  

Income tax expense (benefit)

    9,102       6,659       1,597       4,769       (1,427 )     (27,005 )

Loss (income) on discontinued operations, net of tax

    1,306       51       (458 )     853       1,132       11,169  

Non-GAAP adjusted EBITDA

  $ 50,687     $ 45,089     $ 41,415     $ 40,326     $ 36,124     $ 37,939  
                                                 
                                                 
           

52 Weeks Ended

   

53 Weeks Ended

                         
           

December 29,

   

December 30,

                         
           

2013

   

2012

                         

GAAP net income (loss) applicable to preferred and common shareholders

          $ 22,489     $ (19,984 )                        

Net of tax impact of excluding loss on impairments

            1,990       2,973                          

Net of tax impact of excluding a cumulative adjustment from a change in accounting estimate related to gift card breakage revenue

            1,211       -                          

Net of tax impact of excluding gain on settlements

            (1,315 )     (410 )                        

Net of tax impact of excluding debt issuance costs written-off

            -       544                          

Impact of excluding certain income tax items

            (784 )     274                          

Net of tax impact of excluding loss (income) on discontinued operations

            1,306       19                          

Impact of excluding excess of redemption value over carrying value of preferred shares redeemed

            -       35,776                          

Non-GAAP net income applicable to preferred and common shareholders

          $ 24,897     $ 19,192                          
                                                 

Non-GAAP diluted earnings per share

          $ 0.70     $ 0.55                          
                                                 

Non-GAAP net margin - see Note 1

            6.1 %     4.8 %                        
                                                 

Shares:

                                               

Weighted average number of common shares outstanding - basic

            34,761,160       34,313,636                          

Dilutive shares

            1,023,270       854,791                          

Weighted-average number of common shares outstanding - diluted

            35,784,430       35,168,427                          
                                                 

Total revenues used for non-GAAP net margin

          $ 406,649     $ 396,055                          

 

 

Note 1: Non-GAAP net income applicable to preferred and common shareholders divided by total revenues.