Ruby Tuesday, Inc. Reports Second Quarter Earnings Per Share Growth of 31%
MARYVILLE, Tenn., Jan. 8 /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 second quarter ended December 3, 2000. Earnings per share were $0.17, up 31% from $0.13 a year ago. This marks the eleventh consecutive quarter, and the seventeenth out of nineteen previous quarters, of earnings per share growth in excess of 20%. Net income of $11.0 million for the quarter was up 30% from $8.4 million a year ago. Pre-tax margin of 8.7% was 190 basis points higher than the prior year. Same-store sales at Company-owned Ruby Tuesday(R) restaurants increased 2.8%, while average unit volumes increased 4.3% for the quarter. In addition, the Board of Directors declared a semi-annual cash dividend of $0.0225 per share, payable on February 9, 2001, to shareholders of record at the close of business on January 26, 2001. As previously announced, during the quarter the Company completed the sale of its American Cafe(R) and Tia's(R) Tex-Mex concepts to Specialty Restaurant Group, LLC.
Sandy Beall, the Company's Chairman and CEO, commented, "Ruby Tuesday, Inc. has continued its positive trend for yet another quarter. The investments we have made over the last four years in our teams, training and training facilities are generating returns in the form of lower turnover and greater team and guest satisfaction. Our managing partner program, which is in place in over 55% of our units, continues to yield strong results in terms of sales and operating profits. Our domestic franchise partner program, which continues to add significant value, allows us the opportunity to enhance our growth while minimizing risk. Ruby Tuesday has a strong management team, proven strategies and results, and tremendous new unit growth opportunities. We have a four-year history of consistent and predictable results, and the strategies and financial resources to respond to any near-term pressures."
Beall continued, "Ruby Tuesday is a strong brand operating in the bar-and- grill category of casual dining. We believe that casual dining, and in particular our category, is the strongest sector of the restaurant industry. Positive demographic trends and lifestyle patterns support continued growth for many years to come. With our solid balance sheet and more than 25 years of experience, Ruby Tuesday is poised for continued growth well into the future."
Outlook for Remainder of Fiscal 2001
Based on current business trends, the Company reiterates its previously stated goal of 20-25% earnings per share growth for fiscal 2001 (excluding the $0.15 per share charge recorded in fiscal 2000 in conjunction with the now completed sale of American Cafe and Tia's). As previously stated, the Company's same-store sales growth goal for its third and fourth quarters of fiscal 2001 is approximately 2.0%. The Company is comfortable with the current consensus analyst estimate for third quarter earnings per share of $0.26.
Second Quarter Highlights:
* Earnings per share increased 30.8% to $0.17 from $0.13. Earnings per
share has grown at or in excess of 20% in each of the last eleven
quarters.
* Net income increased 30.2% to $10,982,000 from $8,432,000.
* Average unit volumes increased 4.3% and same-store sales increased 2.8%
for Company-owned Ruby Tuesday restaurants. System-wide same-store
sales for Company-owned and domestic franchise partner Ruby Tuesday
restaurants increased 2.5%.
* System-wide revenue increased 12.0% to $259,947,000 from $232,002,000.
* The Company completed the previously announced sale of its 69 American
Cafe and Tia's Tex-Mex restaurants to Specialty Restaurant Group, LLC
(SRG).
* 15 Company-owned Ruby Tuesday restaurants were opened.
* 11 Company-owned Ruby Tuesday restaurants were closed including six
which were sold to a new franchise partner.
* 13 franchise units were opened (six of which were former Company-owned
Ruby Tuesday restaurants sold to a new franchise partner).
Year-to-Date Highlights:
* Earnings per share increased 27.6% to $0.37 from $0.29.
* Net income increased 27.4% to $23,871,000 from $18,732,000.
* System-wide revenue increased 13.5% to $528,022,000 from $465,232,000.
* Same-store sales increased 2.4% for Company-owned Ruby Tuesday
restaurants. System-wide same-store sales for Company-owned and
domestic franchise partner Ruby Tuesday restaurants increased 2.0%.
* Pre-tax profit margin increased 180 basis points from 7.5% to 9.3%.
* 27 Company-owned Ruby Tuesday and three Tia's Tex-Mex restaurants were
opened.
* 13 Company-owned Ruby Tuesday restaurants were closed (six of which were
sold to a new franchise partner).
* 19 franchise units were opened (six of which were former Company-owned
Ruby Tuesday restaurants sold to a new franchise partner) and one was
closed.
As of December 3, 2000, Ruby Tuesday, Inc. owned and operated 350 Ruby Tuesday restaurants located in 26 states. Franchised operations included 154 domestic units and 10 international units. 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 this afternoon at 2:00 Eastern Time. The call will be available live at the following web-sites:
http://www.videonewswire.com/RUBY/010801
http://www.ruby-tuesday.com/company/investorrelations.htm
The call will be archived on both sites through the close of business on January 22, 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 concepts; 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 Second Quarter of Fiscal Year 2001 (unaudited)
(Amounts in thousands except per share amounts)
13 Weeks 13 Weeks
Ended Ended
December 3, Percent December 5, Percent Percent
2000 of Sales 1999 of Sales Change
System-Wide Sales:
Company-owned revenue $ 193,864 $ 191,995
Franchised revenue 66,083 40,007
Total system-wide
sales $ 259,947 $ 232,002 12.0
Revenues:
Ruby Tuesday $ 171,497 87.2 $ 165,828 85.6
Other concepts 22,367 11.4 26,167 13.5
Company restaurant
revenues 193,864 98.6 191,995 99.1 1.0
Franchise income 2,838 1.4 1,784 0.9
Total operating
revenues 196,702 100.0 193,779 100.0 1.5
Operating Costs and Expenses:
(as a percent of Company
restaurant revenues)
Cost of merchandise 52,984 27.3 52,389 27.3
Payroll and related
costs 63,320 32.7 62,346 32.5
Other restaurant
operating costs 39,750 20.5 40,249 21.0
Depreciation and
amortization 9,248 4.8 10,331 5.4
(as a percent of Total
operating revenues)
Selling, general and
administrative 14,358 7.3 14,814 7.6
Total operating costs and
expenses 179,660 180,129
Earnings before Interest and
Taxes
(EBIT) 17,042 8.7 13,650 7.0 24.8
Interest expense (net) (64) 0.0 499 0.3
Provision for income
taxes 6,124 3.1 4,719 2.4
Net Income $ 10,982 5.6 $ 8,432 4.4 30.2
Earnings Per Share:
Basic $ 0.17 $ 0.14 21.4
Diluted $ 0.17 $ 0.13 30.8
Shares:
Basic 62,291 62,342
Diluted 64,483 64,448
RUBY TUESDAY, INC.
Financial Results For the Second Quarter of Fiscal Year 2001 (unaudited)
(Amounts in thousands except per share amounts)
26 Weeks 26 Weeks
Ended Ended
December 3, Percent December 5, Percent Percent
2000 of Sales 1999 of Sales Change
System-Wide Sales:
Company-owned revenue $ 396,087 $ 385,584
Franchised revenue 131,935 79,648
Total system-wide
sales $ 528,022 $ 465,232 13.5
Revenues:
Ruby Tuesday $ 346,109 86.2 $ 333,474 85.7
Other concepts 49,978 12.4 52,110 13.4
Company restaurant
revenues 396,087 98.6 385,584 99.1 2.7
Franchise income 5,625 1.4 3,480 0.9
Total operating
revenues 401,712 100.0 389,064 100.0 3.3
Operating Costs and Expenses:
(as a percent of Company
restaurant revenues)
Cost of merchandise 107,761 27.2 105,381 27.3
Payroll and related
costs 128,443 32.4 123,962 32.1
Other restaurant
operating costs 80,178 20.2 80,634 20.9
Depreciation and
amortization 18,939 4.8 20,692 5.4
(as a percent of Total
operating revenues)
Selling, general and
administrative 29,635 7.4 28,164 7.2
Total operating costs and
expenses 364,956 358,833
Earnings before Interest and
Taxes (EBIT) 36,756 9.1 30,231 7.8 21.6
Interest expense (net) (426) (0.1) 919 0.2
Provision for income
taxes 13,311 3.3 10,580 2.7
Net Income $ 23,871 5.9 $ 18,732 4.8 27.4
Earnings Per Share:
Basic $ 0.38 $ 0.30 26.7
Diluted $ 0.37 $ 0.29 27.6
Shares:
Basic 62,099 63,152
Diluted 64,370 65,364
RUBY TUESDAY, INC.
Financial Results For the Second Quarter
of Fiscal Year 2001 (unaudited)
(Amounts in thousands except per share amounts)
December 3, June 4,
CONDENSED BALANCE SHEETS 2000 2000
Assets
Cash and Short-Term Investments $9,337 $10,154
Accounts and Notes Receivable 12,167 6,880
Inventories 8,545 9,378
Prepaid Income Taxes 7,995 312
Assets Held for Disposal 3,854 59,057
Other Current Assets 6,216 8,674
Total Current Assets 48,114 94,455
Property and Equipment, Net 291,604 281,865
Costs in Excess of Net Assets
Acquired 8,037 8,229
Notes Receivable, Net 51,152 23,126
Deferred Income Taxes 1,849 5,355
Other Assets 29,496 26,182
Total Assets $430,252 $439,212
Liabilities
Current Liabilities $77,270 $151,796
Long-Term Debt 37,566 636
Other Deferred Liabilities 57,788 56,956
Total Liabilities 172,624 209,388
Shareholders' Equity 257,628 229,824
Total Liabilities and
Shareholders' Equity $430,252 $439,212
SOURCE Ruby Tuesday, Inc.
Web site: http: //www.ruby-tuesday.com
CONTACT: Russell Mothershed, Sr. Vice President and Chief Financial Officer, or Price Cooper, Director, Investor Relations and Planning, of Ruby Tuesday, Inc., 865-379-5700