Ruby Tuesday, Inc. Announces Fiscal First Quarter 2017 Financial Results

MARYVILLE, TN–(hospitalitybusinessnews.com)–Ruby Tuesday, Inc. (NYSE:RT) today announced the following preliminary financial results for the fiscal first quarter ended August 30, 2016:

  • Total revenue, including franchise revenue, of approximately $256.7 million.
  • Same restaurant sales declined approximately 2.7%.
  • Net Loss per diluted share to range from $0.67 to $0.74. Adjusted Net Loss per diluted share to range from $0.10 to $0.12.

As of today, all 95 restaurants have closed under the Company’s asset rationalization plan announced on August 11, 2016. Additionally, these locations have been excluded from the calculation of the Company’s same restaurant sales performance for the fiscal first quarter and will be excluded on a go-forward basis.

Preliminary results remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change. Specifically, the charges for closed restaurant lease reserves reflected within Closures and Impairments, Net associated with the Company’s asset rationalization plan are subject to change pending the conclusion of the first quarter evaluation.

Ruby Tuesday, Inc. owns and franchises Ruby Tuesday brand restaurants. As of August 30, 2016, there were 615 Ruby Tuesday restaurants in 42 states, 14 foreign countries, and Guam. Of those restaurants, we owned and operated 547 Ruby Tuesday restaurants and franchised 68 Ruby Tuesday restaurants, comprised of 18 domestic and 50 international restaurants. Our corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic, and Midwest of the United States, which we consider to be our core markets.

Non-GAAP Reconciliation Table

Reconciliation of Estimated EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted Net Loss Per Share

(Amounts in thousands except per share amounts)
(Unaudited)
Low High
13 Weeks 13 Weeks
Ended Ended
August 30, August 30,
2016 2016
Estimated Net Loss $ (40,212 ) $ (44,212 )
Depreciation and Amortization 11,229 11,229
Interest Expense, net 4,877 4,877
Benefit for Income Taxes (1,615 ) (1,775 )
EBITDA $ (25,721 ) $ (29,881 )
Closures and Impairments, Net (1) 31,712 33,712
Adjusted EBITDA $ 5,991 $ 3,831
Estimated Net Loss $ (40,212 ) $ (44,212 )
Closures and Impairments, Net (1) 31,712 33,712
Income Tax Benefit from Adjustments (2) (12,586 ) (13,380 )
Income Tax Benefit Adjusted to Statutory Rate (3) 14,986 16,477
Adjusted Net Loss $ (6,100 ) $ (7,403 )
Net Loss Per Share $ (0.67 ) $ (0.74 )
Adjusted Net Loss Per Share $ (0.10 ) $ (0.12 )
Basic Shares Outstanding 59,790 59,790
Diluted Shares Outstanding 59,790 59,790
(1) Includes property impairments, closed restaurant lease reserves, closing cost adjustments, and gain on the sale of surplus properties.
(2) Represents the tax impact of the adjustments to Net Loss at the Company’s statutory tax rate (39.69%).
(3) Represents the Company’s Income Tax Benefit adjusted to the Company’s statutory tax rate.
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