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8-K - FORM 8-K - Ruths Hospitality Group, Inc.ruth20150126_8k.htm
EX-99 - EXHIBIT 99.2 - Ruths Hospitality Group, Inc.ex99-2.htm
EX-99 - EXHIBIT 99.3 - Ruths Hospitality Group, Inc.ex99-3.htm

 Exhibit 99.1

 

 

 

PRELIMINARY AND UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND NON-GAAP FINANCIAL MEASURES

 

 

The preliminary and unaudited quarterly condensed consolidated statements of income (loss) and the non-GAAP financial measures have been prepared as a supplement to the pro forma financial statements to illustrate the quarterly impact of the reclassification of the Mitchell’s Restaurants’ operating results to discontinued operations for fiscal years 2014 and 2013. The fiscal year 2013 operating results of three additional locations closed in fiscal year 2014 have also been reclassified to the discontinued operations line of the quarterly condensed consolidated statements of income. Therefore, the quarterly condensed consolidated statements of income do not agree to the pro forma financial statements presented in Exhibit 99.3 for fiscal year 2013.

 

 
 

 

 

RUTH'S HOSPITALITY GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Loss) - Preliminary and Unaudited

(Amounts in thousands, except share and per share data)

 

   

Quarter Ended

           

Quarter Ended

         
   

March 31,

   

June 30,

   

September 29,

   

December 29,

   

Fiscal Year

   

March 30,

   

June 29,

   

September 28,

   

Year to Date

 
   

2013

   

2013

   

2013

   

2013

   

2013

   

2014

   

2014

   

2014

   

Q3 2014

 

Revenues:

                                                                       

Restaurant sales

  $ 81,325     $ 73,744     $ 64,432     $ 84,699     $ 304,200     $ 85,070     $ 77,989     $ 69,283     $ 232,342  

Franchise income

    3,663       3,647       3,498       4,203       15,011       4,036       3,807       3,517       11,360  

Other operating income

    891       2,802       721       (1,271 )     3,143       1,248       1,210       995       3,453  

Total revenues

    85,879       80,193       68,651       87,631       322,354       90,354       83,006       73,795       247,155  
                                                                         

Costs and expenses:

                                                                       

Food and beverage costs

    25,104       22,097       19,867       26,318       93,386       26,667       24,828       22,165       73,661  

Restaurant operating expenses

    37,083       35,624       34,668       38,289       145,664       38,843       37,741       37,238       113,821  

Marketing and advertising

    1,579       3,087       1,362       3,312       9,340       1,746       1,923       1,990       5,658  

General and administrative costs

    6,635       6,695       6,642       7,836       27,808       6,225       5,847       5,352       17,424  

Depreciation and amortization expenses

    2,689       2,539       2,452       2,550       10,230       2,510       2,714       2,693       7,918  

Pre-opening costs

    1       142       316       232       691       409       119       395       924  

Gain on settlements, net

    -       -       (1,719 )     -       (1,719 )     -       -       -       -  

Total costs and expenses

    73,091       70,184       63,588       78,537       285,400       76,400       73,172       69,833       219,406  
                                                                         

Operating income

    12,788       10,009       5,063       9,094       36,954       13,954       9,834       3,962       27,749  
                                                                         

Other income (expense):

                                                                       

Interest expense

    (516 )     (415 )     (414 )     (295 )     (1,640 )     (287 )     (298 )     (297 )     (881 )

Other

    25       (1 )     (101 )     (1 )     (77 )     9       12       5       25  
                                                                         

Income from continuing operations before income tax expense

    12,297       9,593       4,548       8,798       35,237       13,676       9,548       3,670       26,893  

Income tax expense

    3,881       2,452       1,623       2,787       10,744       4,686       2,880       1,472       9,038  
                                                                         

Income from continuing operations

    8,416       7,141       2,925       6,011       24,493       8,990       6,668       2,198       17,855  

Discontinued operations:

                                                                       

Income (loss) from discontinued operations, net of income taxes

    (755 )     626       (38 )     (1,836 )     (2,004 )     (125 )     236       (9,496 )     (9,385 )

Net income (loss)

  $ 7,661     $ 7,767     $ 2,887     $ 4,175     $ 22,489     $ 8,865     $ 6,904     $ (7,298 )   $ 8,470  
                                                                         

Basic earnings (loss) per common share:

                                                                       

Continuing operations

  $ 0.24     $ 0.20     $ 0.08     $ 0.17     $ 0.71     $ 0.25     $ 0.19     $ 0.06     $ 0.51  

Discontinued operations

    (0.02 )   $ 0.02       (0.00 )     (0.05 )     (0.06 )     (0.00 )     0.01       (0.27 )     (0.27 )

Basic earnings (loss) per share

  $ 0.22     $ 0.22     $ 0.08     $ 0.12     $ 0.65     $ 0.25     $ 0.20     $ (0.21 )   $ 0.24  
                                                                         

Diluted earnings (loss) per common share:

                                                                       

Continuing operations

  $ 0.24     $ 0.20     $ 0.08     $ 0.17     $ 0.69     $ 0.25     $ 0.18     $ 0.06     $ 0.51  

Discontinued operations

    (0.02 )     0.02       (0.00 )     (0.05 )     (0.06 )     (0.00 )   $ 0.01       (0.27 )   $ (0.27 )

Diluted earnings (loss) per share

  $ 0.22     $ 0.22     $ 0.08     $ 0.12     $ 0.63     $ 0.25     $ 0.19     $ (0.21 )   $ 0.24  
                                                                         

Shares used in computing earnings (loss) per common share:

                                                                       

Basic

    34,456,380       34,660,149       34,956,353       34,978,903       34,761,160       35,094,652       35,122,131       34,925,592       35,047,458  

Diluted

    35,505,778       35,681,077       35,795,508       35,858,859       35,784,430       35,822,458       35,587,975       34,925,592       35,567,738  

Dividends declared per common share

  $ -     $ 0.04     $ 0.04     $ 0.04     $ 0.12     $ 0.05     $ 0.05     $ 0.05     $ 0.15  

 

 
 

 

 

NON-GAAP FINANCIAL MEASURES

 

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our press releases announcing quarterly earnings, we have made reference to non-GAAP net income and non-GAAP diluted earnings per common share. These non-GAAP measurements were calculated by excluding certain non-recurring items and losses from discontinued operations. These non-GAAP measurements have been included as supplemental information. We believe that this measure represents 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 on a quarter-over-quarter basis. 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 similarly titled measures presented by other companies. These non-GAAP financial measure are presented as supplemental information and not as an alternative to any GAAP measurements.

 

 

Reconciliation of Non-GAAP Financial Measure - Unaudited

(Amounts in thousands, except share data)

 

   

Quarter Ended

           

Quarter Ended

         
   

March 31,

   

June 30,

   

September 29,

   

December 29,

   

Fiscal Year

   

March 30,

   

June 29,

   

September 28,

   

Year to Date

 
   

2013

   

2013

   

2013

   

2013

   

2013

   

2014

   

2014

   

2014

   

Q3 2014

 
                                                                         

GAAP net income

  $ 7,661     $ 7,767     $ 2,887     $ 4,175     $ 22,489     $ 8,865     $ 6,904       (7,298 )   $ 8,470  

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

    -       -       -       1,306       1,306       -       -       -       -  

Net of tax impact of excluding gain on settlements

    -       -       (1,049 )     -       (1,049 )     -       -       -       -  

Impact of excluding certain income tax items

    -       (616 )     -       -       (784 )     -       -       -       -  

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

    755       (626 )     38       1,836       2,004       125       (236 )     9,496       9,385  

Non-GAAP net income

  $ 8,416     $ 6,525     $ 1,876     $ 7,317     $ 23,966     $ 8,990     $ 6,668     $ 2,198     $ 17,855  
                                                                         

Non-GAAP diluted earnings per share

  $ 0.24     $ 0.18     $ 0.05     $ 0.20     $ 0.67     $ 0.25     $ 0.19     $ 0.06     $ 0.50  
                                                                         

Shares:

                                                                       

Weighted average number of common shares outstanding - basic

    34,456,380       34,660,149       34,956,353       34,978,903       34,761,160       35,094,652       35,122,131       34,925,592       35,047,458  

Dilutive shares

    1,049,398       1,020,928       839,155       879,956       1,023,270       727,806       465,844       379,814       520,280  

Weighted-average number of common shares outstanding - diluted

    35,505,778       35,681,077       35,795,508       35,858,859       35,784,430       35,822,458       35,587,975       35,305,406       35,567,738