Ruby Tuesday, Inc. Reports Second Quarter Earnings Per Share Growth of 35%
MARYVILLE, Tenn., Jan. 10 /PRNewswire/ -- Ruby Tuesday, Inc. (NYSE: RI), one of America's leading companies in the bar and grill segment of casual dining, today reported second quarter earnings per share of $0.23, up 35% from $0.17 a year ago. Net income of $15.1 million for the quarter ended December 4, 2001 was up 37% from $11.0 million a year ago. As previously reported, same-store sales at Company-owned Ruby Tuesday(R) restaurants increased 1.9% for the quarter. System-wide same-store sales increased 1.2%, as same-store sales decreased 1.0% at domestic franchise Ruby Tuesday restaurants primarily as a result of the concentration of franchised units in Florida. The Company also announced it completed the sales of 19 units in Indiana, Missouri, Arkansas and Illinois to three new domestic franchise partners on December 5, 2001. In addition, the Board of Directors declared a semi-annual cash dividend of $0.0225 per share, payable on February 8, 2002 to shareholders of record at the close of business on January 25, 2002.
Sandy Beall, the Company's Chairman and CEO, commented, "I am very pleased with our second quarter results and how our teams pulled together after the tragic events of September 11th. Not only did our team members make monetary contributions to the relief efforts, they also displayed tremendous tenacity to overcome the effects the events had on our business. After starting the first four weeks of the second quarter down 0.3% in same-store sales, our teams stayed focused and battled back and we ended the quarter up 1.9% in same-store sales. This was accomplished with no media advertising."
Beall continued, "While our teams were focusing on driving sales, we continued to support them by investing more money in labor through increasing the number of managers in each unit and continuing our focus on being fully staffed at each and every restaurant. I believe any slowdown presents an opportunity to further distance yourself from the competition provided you are willing to make the necessary investments, and we are doing just that. The investments we have made and continue making will allow us to continue to be a dominant player in the bar and grill segment of casual dining, which we believe is the most attractive segment of the industry and offers the greatest long-term growth potential due to multiple demographic factors and relatively limited chain domination as compared to other segments of the industry."
Outlook for Remainder of Fiscal 2002
Third quarter same-store sales at Company-owned Ruby Tuesday restaurants increased 5.3% through December 31, 2001 and are up 3.9% through January 8th after the effect of the snow in the first week of 2002. The Company reiterates its goal of flat to up 1.0% same-store sales for the third quarter as prior year third quarter same-store sales increased 6.5%, the largest increase ever. The Company's goal for fourth quarter same-store sales growth is approximately 2.0%. Based on this, the Company is comfortable with the current consensus analysts estimate of $0.31 per share for each of the third and fourth quarters, and thus 22% earnings per share growth for the year.
Second Quarter Highlights: * Earnings per share increased 35.3% to $0.23 from $0.17. * Net income increased 37.3% to $15,082,000 from $10,982,000. * System-wide Ruby Tuesday revenue increased 15.3% to $272,810,000 from $236,512,000. * Company-owned same-store sales increased 1.9%. System-wide same-store sales increased 1.2%. * 18 Company-owned Ruby Tuesday restaurants were opened and 2 were closed. * Nine franchise units were opened, one unit was closed, and three units in the Boston market were sold to the Company. * The Company purchased approximately 111,000 shares of its common stock during the quarter. The Company has 7.1 million shares remaining authorized for repurchase under its ongoing share repurchase program. Year-to-date Highlights: * Earnings per share increased 32.4% to $0.49 from $0.37. * Net income increased 33.7% to $31,923,000 from $23,871,000. * System-wide Ruby Tuesday revenue increased 16.1% to $552,149,000 from $475,431,000. * Company-owned same-store sales increased 2.0%. System-wide same-store sales increased 1.7%. * Pre-tax profit margin increased 300 basis points to 12.3% from 9.3%. * 32 Company-owned Ruby Tuesday restaurants opened and six closed, including one sold to an existing franchise partner. * 17 franchise units were opened, two were closed, and three units in the Boston market were sold to the Company.
As of December 4, 2001, Ruby Tuesday, Inc. owned and operated 400 Ruby Tuesday restaurants located in 26 states. Franchise operations included 161 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 2:00 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 January 17, 2002.
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 Second Quarter of Fiscal Year 2002 (unaudited) (Amounts in thousands except per share amounts) 13 Weeks 13 Weeks Ended Ended December 4, December 3, Percent Percent Percent 2001 of Sales 2000 of Sales Change System-Wide Ruby Tuesday Sales: Company-owned Ruby Tuesday revenue $195,729 $170,429 Franchised revenue 77,081 66,083 Total system-wide sales $272,810 $236,512 15.3 Revenues: Ruby Tuesday $195,729 98.4 $170,429 87.1 Other concepts 0 0.0 22,339 11.4 Company restaurant revenues 195,729 98.4 192,768 98.5 1.5 Franchise income 3,256 1.6 2,838 1.5 Total operating revenues 198,985 100.0 195,606 100.0 1.7 Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 52,511 26.8 52,984 27.5 Payroll and related costs 65,040 33.2 63,320 32.8 Other 39,769 20.3 39,959 20.7 Depreciation and amortization 8,491 4.3 9,248 4.8 (as a percent of Total operating revenues) Selling, general and administrative 11,249 5.7 13,053 6.7 Total operating costs and expenses 177,060 178,564 Earnings before Interest, Taxes and cumulative effect of change in accounting principle 21,925 11.0 17,042 8.7 28.7 Interest income, net 1,460 0.7 64 0.0 Pre-tax Profit 23,385 11.8 17,106 8.7 Provision for income taxes 8,303 4.2 6,124 3.1 Income before cumulative effect of change in accounting principle 15,082 7.6 10,982 5.6 Cumulative effect of change in accounting principle, net - 0.0 - 0.0 Net Income $15,082 7.6 $10,982 5.6 37.3 Earnings Per Share: Before cumulative effect of change in accounting principle: Basic $0.23 $0.17 35.3 Diluted $0.23 $0.17 35.3 After cumulative effect of change in accounting principle: Basic $0.23 $0.17 35.3 Diluted $0.23 $0.17 35.3 Shares: Basic 63,652 62,291 Diluted 65,360 64,483 26 Weeks 26 Weeks Ended Ended December 4, December 3, Percent Percent Percent 2001 of Sales 2000 of Sales Change System-Wide Ruby Tuesday Sales: Company-owned Ruby Tuesday revenue $395,421 $343,496 Franchised revenue 156,728 131,935 Total system-wide sales $552,149 $475,431 16.1 Revenues: Ruby Tuesday $395,421 98.4 $343,496 86.1 Other concepts 0 0.0 49,923 12.5 Company restaurant revenues 395,421 98.4 393,419 98.6 0.5 Franchise income 6,548 1.6 5,625 1.4 Total operating revenues 401,969 100.0 399,044 100.0 0.7 Operating Costs and Expenses: (as a percent of Company restaurant revenues) Cost of merchandise 105,880 26.8 107,761 27.4 Payroll and related costs 129,777 32.8 128,443 32.6 Other 80,137 20.3 80,391 20.4 Depreciation and amortization 16,575 4.2 18,939 4.8 (as a percent of Total operating revenues) Selling, general and administrative 22,857 5.7 26,754 6.7 Total operating costs and expenses 355,226 362,288 Earnings before Interest, Taxes and cumulative effect of change in accounting principle 46,743 11.6 36,756 9.2 27.2 Interest income, net 2,843 0.7 426 0.1 Pre-tax Profit 49,586 12.3 37,182 9.3 Provision for income taxes 17,605 4.4 13,311 3.3 Income before cumulative effect of change in accounting principle 31,981 8.0 23,871 6.0 Cumulative effect of change in accounting principle, net 58 0.0 - 0.0 Net Income $31,923 7.9 $23,871 6.0 33.7 Earnings Per Share: Before cumulative effect of change in accounting principle: Basic $0.50 $0.38 31.6 Diluted $0.49 $0.37 32.4 After cumulative effect of change in accounting principle: Basic $0.50 $0.38 31.6 Diluted $0.49 $0.37 32.4 Shares: Basic 63,449 62,099 Diluted 65,273 64,370 RUBY TUESDAY, INC. Financial Results For the Second Quarter of Fiscal Year 2002 (unaudited) (Amounts in thousands except per share amounts) December 4, June 5, CONDENSED BALANCE SHEETS 2001 2001 Assets Cash and Short-Term Investments $16,251 $10,636 Accounts and Notes Receivable 10,303 6,754 Inventories 10,183 9,372 Prepaid Income Taxes 2,410 64 Assets Held for Disposal 28,490 22,197 Other Current Assets 14,184 15,397 Total Current Assets 81,821 64,420 Property and Equipment, Net 316,248 290,135 Goodwill, Net 7,845 7,845 Notes Receivable, Net 57,039 56,881 Other Assets 30,606 26,386 Total Assets $493,559 $445,667 Liabilities Current Liabilities $78,115 $88,433 Long-Term Debt 23,948 15,212 Deferred Income Taxes 7,850 4,127 Other Deferred Liabilities 64,488 53,624 Total Liabilities 174,401 161,396 Shareholders' Equity 319,158 284,271 Total Liabilities and Shareholders' Equity $493,559 $445,667 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X17491477
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=2535