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8-K - FORM 8-K - Ruths Hospitality Group, Inc.ruth20141215_8k.htm
EX-99 - EXHIBIT 99.1 - Ruths Hospitality Group, Inc.ex99-1.htm

Exhibit 99.2

 

 

Reconciliation of Non-GAAP Measure

 

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our investor presentation materials, we make reference to non-GAAP adjusted earnings before interest, taxes depreciation and amortization (EBITDA) and non-GAAP pro forma net income. These non-GAAP measurements have been included as supplemental information. We believe that these measurements represent a useful internal measure of performance. Accordingly, where we provide non-GAAP measures like adjusted EBITDA and pro forma net income, 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 non-GAAP measures like adjusted EBITDA and pro forma net income 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 non-GAAP measures as presented may not be directly comparable to a similarly titled measures presented by other companies. Adjusted EBITDA and pro forma net income are presented as supplemental information and not as an alternative to any GAAP measurements.

 

 

Reconciliation of Non-GAAP Financial Measures - Unaudited

(amounts in thousands)

 

   

Fiscal Year

 
                                                   

Year to Date

 
   

2008

   

2009

   

2010

   

2011

   

2012

   

2013

   

Q3 2014

 

GAAP net income (loss)

  $ (53,883 )   $ 2,419     $ 15,957     $ 19,549     $ 16,379     $ 22,489     $ 8,470  

Depreciation and amortization expenses

    16,213       16,220       15,311       14,859       14,556       13,060       9,813  

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

    -       -       -       -       -       1,984       -  

Loss on impairment and asset disposals, net

    72,185       9,936       483       3,478       4,955       3,262       15,295  

Restructuring expense (benefit)

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

Gain on the settlements

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

Interest expense

    10,334       7,756       4,244       2,892       3,172       1,640       881  

Income tax expense (benefit)

    (27,005 )     140       4,827       1,663       6,687       9,102       2,376  

Loss (income) on discontinued operations, net of tax

    11,169       (255 )     1,241       (396 )     19       1,306       326  

Non-GAAP adjusted EBITDA

  $ 37,939     $ 36,256     $ 40,380     $ 41,543     $ 45,085     $ 50,687     $ 37,161  

 

 

   

13 Weeks Ended

 
   

September 28,

   

September 29,

 
   

2014

   

2013

 

GAAP net income (loss)

  $ (7,298 )   $ 2,887  

Net of tax impact of excluding loss on impairments

    9,253       -  

Net of tax impact of excluding gain on settlements

    -       (1,298 )

Net of tax impact of excluding loss from discontinued operations

    100       123  

Non-GAAP net income

  $ 2,055     $ 1,712  
                 

Non-GAAP diluted earnings per share

  $ 0.06     $ 0.05  
                 

Shares:

               

Weighted average number of common shares outstanding - basic

    34,925,592       34,956,353  

Dilutive shares

    379,814       839,155  

Weighted-average number of common shares outstanding - diluted

    35,305,406       35,795,508