Ruby Tuesday, Inc. Reports Fifth Consecutive Year Of Earnings Per Share Growth Of 20% Or Better
MARYVILLE, Tenn., July 9 /PRNewswire/ -- Ruby Tuesday, Inc., (NYSE: RI) one of America's leading companies in the fast-growing casual dining segment of the restaurant industry, today reported results for its fourth quarter and year ended June 5, 2001. For the quarter, net income increased 21% and earnings per share increased 18% to $0.26 from $0.22 a year ago. For the year, net income increased 27% and earnings per share increased 26% to $0.91 from $0.72 in fiscal 2000 (fiscal 2000 amounts for both the fourth quarter and the year exclude the 15 cents per share impact recorded in the fourth quarter of fiscal 2000 in conjunction with the then planned sale of the American Cafe and Tia's Tex-Mex restaurants; this sale was completed in the second quarter of fiscal 2001). This marks the fifth consecutive year of earnings per share growth at or in excess of 20%. Fiscal 2001 earnings per share growth was largely attributable to same-store sales growth of 3.7% and 3.4% for the year and quarter, respectively, at Company-owned Ruby Tuesday(R) restaurants. Average unit volumes at Company-owned Ruby Tuesday restaurants continued outpacing same-store sales growth, rising 4.2% for the quarter and for the year. The Company's Board of Directors declared a semi-annual cash dividend of $.0225 per share, payable on August 6, 2001 to shareholders of record at the close of business on July 23, 2001.
Sandy Beall, the Company's Chairman and CEO, commented, "This marks our fifth consecutive year of consistent, predictable results. Much of our success revolves around recruiting, developing and retaining great talent. I am happy to say that our team turnover, at less than 110%, is at a record low. This is a tremendous accomplishment and one we are very proud of because in our business, everything starts with our teams. Our teams have been one of our core focus areas for several years now, and our investments in our teams continue to generate huge dividends."
"In addition to our never relenting focus on our teams, our focus on operational excellence has led to tremendous financial success, even during uncertain economic times", continued Beall. "This marks our second consecutive year of same-store sales growth in the three to four percent range, which we believe is remarkable considering that our growth strategy does not include a hefty media budget. Our earnings per share growth has been consistent, our margins continue expanding, our return on equity is among the highest in the industry, and we have a strong balance sheet. We are excited about our accomplishments and equally as excited with our direction, as we are positioned to take full advantage of the continuing growth potential of the casual dining segment, and in particular the bar and grill segment."
Outlook for Fiscal 2002
Based on current business trends, the Company's earnings per share growth goal for fiscal 2002 is approximately 20%, and the Company is comfortable with the current analyst consensus of earnings per share of $1.09 for fiscal 2002. The Company's goal for same-store sales growth for fiscal year 2002 is approximately 2.0%-3.0% and the Company anticipates that first quarter same- store sales will be in the 2.5% range as same-store sales are up 2.5%-3.0% thus far in fiscal 2002. Accordingly, the Company believes that first quarter 2002 earnings per share will be in the $0.24 to $0.25 range. Current plans call for the addition of 45-50 Company-owned units and 30-35 franchised units during fiscal 2002. In addition, the Company plans to refranchise 20 units to three new franchise partners and one to an existing partner during the second quarter of fiscal 2002.
Fourth Quarter Highlights: * Earnings per share increased 18.2% to $0.26 from $0.22. * Net income increased 21.2% to $17,131,000 from $14,131,000. * Average unit volumes increased 4.2% and same-store sales increased 3.4% at Company-owned Ruby Tuesday restaurants. * System-wide Ruby Tuesday revenue increased 18.6% to $269,987,000 from $227,741,000. * 21 Company-owned Ruby Tuesday restaurants were opened and three were closed due to normal lease expirations. * Six franchise units were opened and ten were closed (nine of which were reacquired by the Company). * The Company purchased 1.0 million shares of its common stock during the quarter. Fiscal Year 2001 Highlights: * Earnings per share increased 26.4% to $0.91 from $0.72. * Net income increased 27.1% to $59,239,000 from $46,593,000. * System-wide Ruby Tuesday revenue increased 17.2% to $1,015,746,000 from $866,860,000. * Average unit volumes increased 4.2% and same-store sales increased 3.7% at Company-owned Ruby Tuesday restaurants. * Pre-tax profit margin increased 260 basis points to 11.7%. * 55 Company-owned Ruby Tuesday restaurants were opened and 17 were closed (six due to normal lease expirations, six of which were sold to a new franchise partner, two of which were leased to SRG, and three closed in Texas). * 30 franchise units were opened (six of which were former Company-owned Ruby Tuesday restaurants sold to a new domestic franchise partner) and 13 were closed (nine of which were reacquired by the Company and four planned closings due to lease expirations and subleases). * The sale of the American Cafe and Tia's Tex-Mex restaurants was completed on November 20, 2000.
As of June 5, 2001, Ruby Tuesday, Inc. owned and operated 374 Ruby Tuesday restaurants located in 27 states. Franchised operations included 151 domestic units and 12 international units. Ruby Tuesday, Inc. is traded on the New York Stock Exchange (Symbol: RI).
For more information, contact: Price Cooper Phone: 865-379-5700 Director, Investor Relations and Planning
The Company will host a conference call which will be a live web-cast this afternoon at 4:00 Eastern Time. The call will be available live at the following web-sites:
The call will be archived on both sites through the close of business on July 16, 2001.
Special Note Regarding Forward-Looking Information
This press release contains various "forward-looking statements" which represent the Company's expectations or beliefs concerning future events, including the following: future financial performance and unit growth (both Company-owned and franchised), future capital expenditures, future borrowings and repayment of debt, and payment of dividends. The Company cautions that a number of important factors could, individually or in the aggregate, cause actual results to differ materially from those included in the forward-looking statements, including, without limitation, the following: consumer spending trends and habits; mall-traffic trends; increased competition in the casual dining restaurant market; weather conditions in the regions in which Company- owned and franchised restaurants are operated; consumers' acceptance of the Company's development prototypes; laws and regulations affecting labor and employee benefit costs; costs and availability of food and beverage inventory; the Company's ability to attract qualified managers and franchisees; changes in the availability of capital; and general economic conditions.
RUBY TUESDAY, INC. Financial Results For the Fourth Quarter of Fiscal Year 2001 (unaudited) (Amounts in thousands except per share amounts) Excluding Estimated Loss on Sale of American Cafe and Tia's 13 Weeks 13 Weeks Ended Ended June 5, Percent June 4, Percent Percent 2001 of Sales 2000 of Sales Change System-Wide Ruby Tuesday Sales: Company-owned Ruby Tuesday revenue $ 193,171 $ 168,028 Franchised Ruby Tuesday revenue 76,816 59,713 Total system-wide Ruby Tuesday sales $ 269,987 $ 227,741 18.6 Revenues: Ruby Tuesday $ 193,171 98.3 $ 168,028 84.3 Other concepts -- 0.0 28,468 14.3 Company restaurant revenues 193,171 98.3 196,496 98.6 (1.7) Franchise income 3,271 1.7 2,713 1.4 Total operating revenues 196,442 100.0 199,209 100.0 (1.4) Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 53,697 27.8 52,578 26.8 Payroll and related costs 61,517 31.8 62,786 32.0 Other restaurant operating costs 34,486 17.9 36,786 18.7 Depreciation and amortization 7,941 4.1 10,610 5.4 (as a percent of Total operating revenues) Selling, general and administrative 13,768 7.0 14,511 7.3 Total operating costs and expenses 171,409 177,271 Earnings before Interest and Taxes (EBIT) 25,033 12.7 21,938 11.0 14.1 Interest (income)/expense, net (1,650) (0.8) (107) (0.1) Provision for income taxes 9,552 4.9 7,914 4.0 Net Income $ 17,131 8.7 $ 14,131 * 7.1 21.2 Earnings Per Share: Basic $ 0.27 $ 0.23 17.4 Diluted $ 0.26 $ 0.22 * 18.2 Shares: Basic 64,014 61,721 Diluted 66,094 63,678 * - Net income, including the impact of the estimated loss on the sale of American Cafe and Tia's, reported for the 13 and 52 weeks ended June 4, 2000 was $4,078 and $36,540, respectively. Diluted earnings per share for the same periods was $0.07 and $0.57, respectively. RUBY TUESDAY, INC. Financial Results For the Fourth Quarter of Fiscal Year 2001 (unaudited) (Amounts in thousands except per share amounts) Excluding Estimated Loss on Sale of American Cafe and Tia's 52 Weeks 52 Weeks Ended Ended June 5, Percent June 4, Percent Percent 2001 of Sales 2000 of Sales Change System-Wide Ruby Tuesday Sales: Company-owned Ruby Tuesday revenue $ 727,200 $ 680,393 Franchised Ruby Tuesday revenue 288,546 186,467 Total system-wide Ruby Tuesday sales $1,015,746 $ 866,860 17.2 Revenues: Ruby Tuesday $ 727,200 92.1 $ 680,393 85.4 Other concepts 49,978 6.3 108,847 13.6 Company restaurant revenues 777,178 98.4 789,240 99.0 (1.5) Franchise income 12,456 1.6 8,255 1.0 Total operating revenues 789,634 100.0 797,495 100.0 (1.0) Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 213,064 27.4 214,136 27.1 Payroll and related costs 248,078 31.9 251,463 31.9 Other restaurant operating costs 147,853 19.0 159,398 20.2 Depreciation and amortization 34,380 4.4 41,855 5.3 (as a percent of Total operating revenues) Selling, general and administrative 57,521 7.3 56,454 7.1 Total operating costs and expenses 700,896 723,306 Earnings before Interest and Taxes (EBIT) 88,738 11.2 74,189 9.3 19.6 Interest (income)/expense, net (3,536) (0.5) 1,415 0.2 Provision for income taxes 33,035 4.2 26,181 3.3 Net Income $ 59,239 7.5 $ 46,593 * 5.8 27.1 Earnings Per Share: Basic $ 0.94 $ 0.75 25.3 Diluted $ 0.91 $ 0.72 * 26.4 Shares: Basic 62,900 62,532 Diluted 65,088 64,576 * - Net income, including the impact of the estimated loss on the sale of American Cafe and Tia's, reported for the 13 and 52 weeks ended June 4, 2000 was $4,078 and $36,540, respectively. Diluted earnings per share for the same periods was $0.07 and $0.57, respectively. RUBY TUESDAY, INC. Financial Results For the Fourth Quarter of Fiscal Year 2001 (unaudited) (Amounts in thousands except per share amounts) June 5, June 4, CONDENSED BALANCE SHEETS 2001 2000 Assets Cash and Short-Term Investments $10,636 $10,154 Accounts and Notes Receivable 6,754 6,880 Inventories 9,372 9,378 Prepaid Income Taxes 64 312 Assets Held for Disposal 22,197 59,057 Other Current Assets 15,397 8,674 Total Current Assets 64,420 94,455 Property and Equipment, Net 290,135 281,865 Costs in Excess of Net Assets Acquired 7,845 8,229 Notes Receivable, Net 56,881 23,126 Deferred Income Taxes 0 5,355 Other Assets 26,386 26,182 Total Assets $445,667 $439,212 Liabilities Current Liabilities $88,433 $151,796 Long-Term Debt 15,212 636 Deferred Income 4,127 -- Other Deferred Liabilities 53,624 56,956 Total Liabilities 161,396 209,388 Shareholders' Equity 284,271 229,824 Total Liabilities and Shareholders' Equity $445,667 $439,212 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X31431798
SOURCE Ruby Tuesday, Inc.
Web site: http: //www.rubytuesday.com
CONTACT: Price Cooper, Director, Investor Relations and Planning of Ruby Tuesday, Inc., 865-379-5700