Ruby Tuesday, Inc. Reports Fourth Quarter Results
- Diluted Earnings Per Share Increased 18%
- Net Income Increased 23%
- Company-Owned Ruby Tuesday Same-Store Sales Increased 1.3%
- Domestic Franchise Same-Store Sales Increased 4.6%
MARYVILLE, Tenn., July 14 /PRNewswire-FirstCall/ -- Ruby Tuesday, Inc. (NYSE: RI) today reported results for its fourth quarter and fiscal year ended June 1, 2004. For the quarter, diluted earnings per share increased 17.9% to $0.46, while net income increased 22.6% to $31.0 million. For the year, the Company reported record diluted earnings per share of $1.64, representing a 20.6% increase compared to a year ago. Net income increased 24.3% for the year, while total operating revenues increased 14.0% to $1.0 billion. For the year, pre-tax profit margin increased 150 basis points to 16.4%. Same-store sales at Company-owned Ruby Tuesday restaurants increased 1.3% and 2.3% for the quarter and year, respectively. Same-store sales at domestic franchise restaurants (including restaurants owned by franchisees in which the Company holds an equity interest as well as restaurants owned by traditional franchisees) increased 4.6% and 4.0% for the quarter and year, respectively.
Highlights for the fourth quarter, compared with the same period of the prior year, are shown below:
4Q fiscal 2004 4Q fiscal 2003 Diluted earnings per share $0.46 $0.39 Company-owned same-store sales change 1.3% 1.7% Company-owned average unit volume increase 1.4% 2.1% Total operating revenues $275,538,000 $246,913,000 Pre-tax margins 17.5% 15.7%
"To-go" sales accounted for 6.0% of the Company's sales at Company-owned freestanding restaurants during the fourth quarter. The "curb-side to-go(SM)" program has been in place at both Company-owned and franchise restaurants since the Company's second fiscal quarter of this year.
During the fourth quarter, the Company rolled out its Spring menu, which included some lower pricing as well as Phase Two of the "Ruby Tuesday Smart Eating(SM)" initiative. The primary objective of the Spring menu was to provide value and nutritional information, such as calories, fat grams, net carbohydrate grams and fiber grams, for all menu items thus enabling the guest to make more informed decisions regarding his/her diet. Preference in the Company's Smart Eating initiative continues to grow.
Sandy Beall, the Company's Chairman and Chief Executive Officer, commented, "We just completed a record year in many respects including revenues, margins, and earnings per share. In addition to being a great year financially, fiscal 2004 was a year of great change for us. We reduced the span of control for our multi-unit operators, rolled out curbside to-go to the entire domestic system, took an industry-leading role with our Smart Eating initiative, and invested both money and energy in our facilities and team image programs. After focusing our time and money on our teams, operations and facilities, as we head into fiscal 2005, we now plan to invest money in advertising initiatives affecting the majority of our Company-owned locations. We believe these initiatives, among others, will enable us to continue to deliver on our longer-term goals."
"As has been the case in much of the restaurant industry over the past several months, we have experienced some sequential slowing in same-store sales growth," Beall continued. "Our fourth quarter same-store sales at Company-owned restaurants finished a little softer than we had originally projected, however domestic franchise restaurant same-store sales were much stronger than anticipated. Same-store sales at Company-owned restaurants and domestic franchise restaurants were down 0.2% and up 4.9%, respectively for the Company's June period of fiscal 2005, which ended July 6th. While we recognize the fact we cannot control the economic environment, we remain focused on what we can control and that is great food and great service provided by great people in great restaurants."
At its July 14, 2004 meeting, the Company's Board of Directors declared a semi-annual cash dividend of $0.0225 per share, payable on August 9, 2004 to shareholders of record at the close of business on July 26, 2004.
Fiscal 2005 Guidance
For fiscal 2005, the Company's goal for diluted earnings per share growth is 16.0-17.0%. This is based on same-store sales growth of approximately 1.0% at Company-owned and domestic franchise Ruby Tuesday restaurants. The Company anticipates 50-55 Company-owned restaurant openings during fiscal 2005, and anticipates its franchisees (including both domestic and international) will open 35-40 Ruby Tuesday restaurants during the same period. Additionally, the Company anticipates continuing its purchase of Company common stock under the existing share repurchase program, where 3.8 million shares remain authorized for repurchase. For the first quarter of fiscal 2005, the Company is projecting 22% diluted earnings per share growth based on approximately flat same-store sales at Company-owned Ruby Tuesday restaurants.
Additional Fourth Quarter Highlights:
- Diluted earnings per share increased 17.9% to $0.46 from $0.39.
- Net income increased 22.6% to $31,049,000 from $25,318,000.
- Sales at franchise (including franchise partnership and traditional franchise) Ruby Tuesday restaurants totaled $124,287,000 and $102,140,000 for the fourth quarter of fiscal 2004 and fiscal 2003, respectively. These sales are the basis for determining royalty fees included in franchise income on the Company's income statement.
- Thirteen Company-owned Ruby Tuesday restaurants were opened and three were closed due to lease expirations.
- Ten franchise restaurants were opened and two were closed (one due to lease expiration).
- The Company repurchased 1.2 million shares of its common stock.
- Diluted earnings per share increased 20.6% to $1.64 from $1.36.
- Net income increased 24.3% to $110,009,000 from $88,484,000.
- Sales at franchise (including franchise partnership and traditional franchise) Ruby Tuesday restaurants totaled $453,983,000 and $387,592,000 for fiscal year 2004 and fiscal year 2003, respectively. These sales are the basis for determining royalty fees included in franchise income on the Company's income statement.
- Fifty Company-owned Ruby Tuesday restaurants were opened and six were closed.
- Forty franchise restaurants were opened and five were closed.
- The Company exercised its right to acquire an additional 49% interest in four of the franchise partnerships during the year. As of June 1, 2004, the Company held a 50% interest in thirteen franchise partnerships collectively operating 137 Ruby Tuesday restaurants.
- The Company repurchased 1.2 million shares of its common stock.
Ruby Tuesday, Inc. has Company-owned, and/or franchise Ruby Tuesday brand restaurants in 41 states, the District of Columbia, Puerto Rico, and 12 foreign countries. As of June 1, 2004, the Company owned and operated 484 Ruby Tuesday restaurants, while domestic and international franchisees operated 216 and 36 (including Hawaii) locations, respectively. Ruby Tuesday, Inc. is traded on the New York Stock Exchange (Symbol: RI).
The Company will host a conference call which will be a live web-cast tomorrow morning at 8:30 Eastern Time. The call will be available live at the following websites:
The call will be archived on both sites through the close of business on July 22, 2004.
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, franchisees and team members; changes in the availability of capital; impact of adoption of new accounting standards; and general economic conditions.
RUBY TUESDAY, INC. Financial Results For the Fourth Quarter of Fiscal Year 2004 (Amounts in thousands except per share amounts) 13 Weeks 13 Weeks Ended Ended June 1, Percent June 3, Percent Percent 2004 of Sales 2003 of Sales Change Revenues: Restaurant sales and operating revenues $270,164 98.0 $242,839 98.4 Franchise revenues 5,374 2.0 4,074 1.6 Total operating revenues 275,538 100.0 246,913 100.0 11.6 Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 70,018 25.9 63,439 26.1 Payroll and related costs 82,926 30.7 78,514 32.3 Other restaurant operating costs 44,792 16.6 41,125 16.9 Depreciation and amortization 14,603 5.4 12,609 5.2 (as a percent of Total operating revenues) Selling, general and administrative, net 16,582 6.0 12,469 5.0 Equity in (earnings) of unconsolidated franchises (2,034) (0.7) (921) (0.4) Total operating costs and expenses 226,887 207,235 Earnings before Interest and Taxes 48,651 17.7 39,678 16.1 22.6 Interest expense, net 438 0.2 847 0.3 Pre-tax Profit 48,213 17.5 38,831 15.7 Provision for income taxes 17,164 6.2 13,513 5.5 Net Income $31,049 11.3 $25,318 10.3 22.6 Earnings Per Share: Basic $0.47 $0.39 20.5 Diluted $0.46 $0.39 17.9 Shares: Basic 66,073 64,123 Diluted 67,635 65,321 RUBY TUESDAY, INC. Financial Results For the Fourth Quarter of Fiscal Year 2004 (Amounts in thousands except per share amounts) 52 Weeks 52 Weeks Ended Ended June 1, Percent June 3, Percent Percent 2004 of Sales 2003 of Sales Change Revenues: Restaurant sales and operating revenues $1,023,342 98.3 $898,440 98.3 Franchise revenues 18,017 1.7 15,344 1.7 Total operating revenues 1,041,359 100.0 913,784 100.0 14.0 Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 263,033 25.7 238,598 26.6 Payroll and related costs 320,413 31.3 297,769 33.1 Other restaurant operating costs 171,280 16.7 151,950 16.9 Depreciation and amortization 54,712 5.3 45,956 5.1 (as a percent of Total operating revenues) Selling, general and administrative, net 63,292 6.1 44,830 4.9 Equity in (earnings) of unconsolidated franchises (5,913) (0.6) (3,331) (0.4) Total operating costs and expenses 866,817 775,772 Earnings before Interest and Taxes 174,542 16.8 138,012 15.1 26.5 Interest expense, net 3,726 0.4 2,302 0.3 Pre-tax Profit 170,816 16.4 135,710 14.9 Provision for income taxes 60,807 5.8 47,226 5.2 Net Income $110,009 10.6 $88,484 9.7 24.3 Earnings Per Share: Basic $1.68 $1.38 21.7 Diluted $1.64 $1.36 20.6 Shares: Basic 65,510 63,967 Diluted 67,076 65,093 RUBY TUESDAY, INC. Financial Results For the Fourth Quarter of Fiscal Year 2004 (Amounts in thousands) June 1, June 3, CONDENSED BALANCE SHEETS 2004 2003 Assets Cash and Short-Term Investments $19,485 $8,662 Accounts and Notes Receivable 9,978 10,509 Inventories 13,647 12,200 Deferred Income Taxes 1,975 2,609 Income Tax Receivable 2,941 2,485 Prepaid Rent 2,173 2,136 Assets Held for Disposal 3,030 5,217 Other Current Assets 6,450 6,099 Total Current Assets 59,679 49,917 Property and Equipment, Net 753,319 660,897 Goodwill, Net 7,845 7,845 Notes Receivable, Net 33,366 39,827 Other Assets 64,324 46,035 Total Assets $918,533 $804,521 Liabilities Current Liabilities $90,542 $81,321 Long-Term Debt 168,087 207,064 Deferred Income Taxes 51,310 32,081 Other Deferred Liabilities 81,810 69,527 Total Liabilities 391,749 389,993 Shareholders' Equity 526,784 414,528 Total Liabilities and Shareholders' Equity $918,533 $804,521
SOURCE Ruby Tuesday, Inc. -0- 07/14/2004 /CONTACT: Price Cooper of Ruby Tuesday, Inc., +1-865-379-5700/ /Web site: http://www.rubytuesday.com / (RI) CO: Ruby Tuesday, Inc. ST: Tennessee IN: RST FOD REA SU: ERN DIV ERP CCA MAV JE-JK -- CLW0021 -- 6536 07/14/2004 16:15 EDT http://www.prnewswire.com