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8-K - FORM 8-K - Ruths Hospitality Group, Inc.ruth20160516_8k.htm
EX-99.1 - EXHIBIT 99.1 - Ruths Hospitality Group, Inc.ex99-1.htm

Exhibit 99.2

 

Reconciliation of Non-GAAP Financial Measures

 

 

We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). Within our investor presentation materials, we make reference to adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), a non-GAAP financial measure. We believe that this measurement represents a useful internal measure of performance. Accordingly, where we provide a non-GAAP measure like Adjusted EBITDA, 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 Adjusted EBITDA is not determined in accordance with GAAP, it is susceptible to varying calculations and not all companies calculate the measure in the same manner. As a result, Adjusted EBITDA as presented may not be directly comparable to a similarly titled measure presented by other companies. Adjusted EBITDA is 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

 
                                                                 
    2008 (1)     2009 (1)     2010     2011     2012     2013     2014     2015  

Net income (loss)

  $ (53,883 )   $ 2,419     $ 15,957     $ 19,549     $ 16,379     $ 22,489     $ 16,455     $ 30,004  

Interest expense

    10,334       7,756       4,244       2,892       3,171       1,640       1,159       790  

Income tax expense (benefit)

    (26,844 )     99       5,026       2,963       7,855       10,744       11,830       14,168  

Depreciation and amortization expenses

    12,757       13,217       12,182       11,516       11,050       10,229       10,917       12,520  

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

    -       -       -       -       -       1,306       -       -  

Loss on impairment and asset disposals, net

    24,355       9,640       483       436       3,262       -       -       -  

Restructuring expense (benefit)

    5,195       56       (1,457 )     -       -       -       -       -  

Gain on settlements, net

    -       -       -       -       (683 )     (1,719 )     -       -  

Loss (income) on discontinued operations, net of tax

    60,546       (615 )     (160 )     (171 )     (187 )     2,004       10,255       162  

Adjusted EBITDA

  $ 32,460     $ 32,572     $ 36,275     $ 37,185     $ 40,847     $ 46,693     $ 50,616     $ 57,644  

 

(1) The net income (loss) for fiscal years 2008 and 2009 were last reported on Form 10-K for the fiscal years 2012 and 2013, respectively. The operating results of eighteen Mitchell's Fish Market and three Cameron's/Mitchell's Steakhouse restaurants sold in January 2015 and three Ruth's Chris Steak House restaurants closed in 2014 have been reclassified to discontinued operations. These reclassifications had no effect on previously reported net income.