Ruby Tuesday, Inc. Reports First Quarter Earnings Per Share Growth of 30%
MARYVILLE, Tenn., Oct. 3 /PRNewswire/ -- Ruby Tuesday, Inc. (NYSE: RI), one of America's leading companies in the bar and grill segment of casual dining, today reported first quarter earnings per share of $0.26, up 30% from $0.20 a year ago. Net income of $16.8 million for the quarter ended September 4, 2001 was up 31% from $12.9 million a year ago. For the quarter, system-wide same-store sales increased 2.2%, which was led by same-store sales growth of 2.8% at domestic franchise Ruby Tuesday(R) restaurants. Same-store sales at Company-owned Ruby Tuesday restaurants increased 2.0%, while average unit volumes at Company-owned Ruby Tuesday restaurants increased 3.0% during the quarter.
"We are extremely pleased with the results of our first quarter," said Sandy Beall, Chairman and CEO. "We have done a tremendous job focusing on our business and our teams and creating value for our guests and shareholders. Our new menu which rolled out in June has been very well accepted and has received our highest ratings ever. During the quarter, we benefited from reducing the costs of business without sacrificing our guests' experiences through implementing plans and procedures that have been in the works since the Spring."
Beall continued, "We express our condolences to all those affected by recent tragic events in our nation. We are proud of our team members for their participation in events and activities to help those in need. While these events have undoubtedly affected the economy, I would expect our same- store sales increase for fiscal 2002 to be in the 1.0-1.5% range versus our originally modeled 2% increase. Based on this, we remain comfortable with the consensus analyst estimate prior to the recent events for fiscal 2002 earnings per share of $1.09, which represents a 20% increase over the prior year. Including the impact of having approximately 100 mall units closed on September 11th, second quarter same-store sales are down 0.3% to-date versus being up 5.0-6.0% for the same time period in the prior year. Sales momentum after this past weekend appears to have returned to more normal levels. At this time I would anticipate that second quarter same-store sales increase will be in the flat to up 1% range. Based on this and the benefits of lowering the cost of doing business over the last quarter, we are comfortable with the current consensus analyst estimate for second quarter earnings of $0.21. We remain focused on what is important and that is providing Wow food and Wow service in sparkling clean restaurants to each guest. We have a strong balance sheet, dedicated team members, proven strategies and procedures and believe that maintaining our focus on operations will allow us to come out of any slow down in a position of strength."
First Quarter Highlights: * Earnings per share increased 30.0% to $0.26 from $0.20. * Net income increased 30.7% to $16,841,000 from $12,889,000. * System-wide Ruby Tuesday revenue increased 16.9% to $279,339,000 from $238,919,000. * System-wide same-store sales for Ruby Tuesday restaurants increased 2.2%. * Average unit volumes increased 3.0% and same-store sales increased 2.0% at Company-owned Ruby Tuesday restaurants. * 14 Company-owned Ruby Tuesday restaurants were opened and 4 were closed, including one sold to an existing franchise partner. * Eight franchise units were opened, including one bought by an existing franchise partner, and one was closed. * The Company purchased 201,000 shares of its common stock during the quarter. The Company has 7.2 million shares remaining authorized for repurchase under its ongoing share repurchase program.
As of September 4, 2001, Ruby Tuesday, Inc. owned and operated 384 Ruby Tuesday restaurants located in 26 states. Franchise operations included 156 domestic units and 14 international units. Ruby Tuesday, Inc. is traded on the New York Stock Exchange (Symbol: RI).
For more information, contact: Phone: 865-379-5700 Price Cooper Vice President, Investor Relations and Planning
The Company will host a conference call which will be a live web-cast this afternoon at 2:30 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 October 10, 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 First Quarter of Fiscal Year 2002 (unaudited) (Amounts in thousands except per share amounts) 13 Weeks 13 Weeks Ended Percent Ended Percent Sept. 4, of Sept. 3, of Percent 2001 Sales 2000 Sales Change System-Wide Ruby Tuesday Sales: Company-owned Ruby Tuesday revenue $ 199,692 $ 173,067 Franchised revenue 79,647 65,852 Total system-wide sales $ 279,339 $ 238,919 16.9 Revenues: Ruby Tuesday $ 199,692 98.4 $ 173,067 85.1 Other concepts -- 0.0 27,584 13.5 Company restaurant revenues 199,692 98.4 200,651 98.6 (0.5) Franchise income 3,292 1.6 2,787 1.4 Total operating revenues 202,984 100.0 203,438 100.0 (0.2) Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 53,369 26.7 54,777 27.3 Payroll and related costs 64,737 32.4 65,123 32.5 Other 40,368 20.2 40,432 20.2 Depreciation and amortization 8,084 4.0 9,691 4.8 (as a percent of Total operating revenues) Selling, general and administrative 11,608 5.7 13,701 6.7 Total operating costs and expenses 178,166 183,724 Earnings before Interest, Taxes and cumulative effect of change in accounting principle 24,818 12.2 19,714 9.7 25.9 Interest income, net (1,383) (0.7) (362) (0.2) Provision for income taxes 9,302 4.6 7,187 3.5 Income before cumulative effect of change in accounting principle 16,899 8.3 12,889 6.3 Cumulative effect of change in accounting principle, net 58 0.0 -- 0.0 Net Income $ 16,841 8.3 $ 12,889 6.3 30.7 Earnings Per Share: Before cumulative effect of change in accounting principle: Basic $ 0.27 $ 0.21 28.6 Diluted $ 0.26 $ 0.20 30.0 After cumulative effect of change in accounting principle: Basic $ 0.27 $ 0.21 28.6 Diluted $ 0.26 $ 0.20 30.0 Shares: Basic 63,245 61,907 Diluted 65,187 64,258 RUBY TUESDAY, INC. Financial Results For the First Quarter of Fiscal Year 2002 (unaudited) (Amounts in thousands except per share amounts) September 4, June 5, CONDENSED BALANCE SHEETS 2001 2001 Assets Cash and Short-Term Investments $ 10,621 $ 10,636 Accounts and Notes Receivable 7,917 6,754 Inventories 9,558 9,372 Prepaid Income Taxes 847 64 Assets Held for Disposal 21,542 22,197 Other Current Assets 6,081 15,397 Total Current Assets 56,566 64,420 Property and Equipment, Net 299,663 290,135 Goodwill, Net 7,845 7,845 Notes Receivable, Net 58,751 56,881 Other Assets 28,861 26,386 Total Assets $ 451,686 $ 445,667 Liabilities Current Liabilities $ 74,077 $ 88,433 Long-Term Debt 13,079 15,212 Deferred Income Taxes 3,811 4,127 Other Deferred Liabilities 59,803 53,624 Total Liabilities 150,770 161,396 Shareholders' Equity 300,916 284,271 Total Liabilities and Shareholders' Equity $ 451,686 $ 445,667 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X17683182
SOURCE Ruby Tuesday, Inc.
Web site: http: //www.rubytuesday.com/company/investorrelations.htm
CONTACT: Price Cooper, Vice President, Investor Relations and Planning of Ruby Tuesday, Inc., +1-865-379-5700
Audio: http: //www.videonewswire.com/event.asp?id=1213