UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
October
26, 2011
RUTH'S HOSPITALITY GROUP,
INC.
(Exact
name of registrant as specified in its charter)
Commission
File Number: 000-51485
Delaware |
72-1060618 |
(State or other jurisdiction of incorporation) |
(IRS Employer Identification No.) |
1030 W. Canton Avenue, Ste. 100
Winter
Park, FL 32789
(Address
of principal executive offices, including zip code)
(407)
333-7440
(Registrant’s
telephone number, including area code)
400
International Parkway, Ste. 325
Heathrow,
FL 32746
(Former
name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On October 26, 2011, the Company issued a press release announcing its earnings results for its fiscal third quarter ended September 25, 2011. A copy of the press release is being furnished as Exhibit 99.1.
The information in this Item 2.02 in this Current Report on Form 8-K,
including Exhibit 99 hereto, shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or otherwise subject to the liabilities of that
section. The information in this Item 2.02 of this Current Report on
Form 8-K shall not be deemed to be incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange
Act, except as expressly set forth by specific reference in such filing.
Item 9.01.
Financial Statements and Exhibits
Exhibit 99.1 Press Release issued by Ruth’s Hospitality Group, Inc., dated October 26, 2011.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RUTH’S HOSPITALITY GROUP, INC. |
|||
Date: |
October 26, 2011 |
By: |
/s/ Arne G. Haak |
Arne G. Haak |
|||
Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
Description |
|
99.1 |
Press Release issued by Ruth’s Hospitality Group, Inc., dated October 26, 2011. |
Exhibit 99.1
Ruth’s Hospitality Group, Inc. Reports Third Quarter 2011 Financial Results
WINTER PARK, Fla.--(BUSINESS WIRE)--October 26, 2011--Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its third quarter ended September 25, 2011.
Highlights for the third quarter of 2011 compared to the third quarter of 2010 were as follows:
Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “We’re pleased to have delivered our sixth consecutive quarter of comparable sales growth and our seventh consecutive quarter of traffic gains in the Ruth’s Chris brand, despite what turned out to be a challenging external environment. While our profit was modest this quarter, it was significant in that it was our first profit in four years in what is our seasonally weakest quarter from a sales perspective. I am grateful for the efforts of our team members and would like to thank them for their extraordinary effort and continued dedication. By focusing on high-level execution and creating great value for our guests, we believe we have strengthened and stabilized our brand. Our balance sheet remains strong and we continue to be prudent in evaluating our development opportunities.”
Review of Operating Results
Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income were $80.2 million compared to $78.6 million in the third quarter of 2010.
Company-owned restaurant sales increased 1.9% to $77.1 million for the third quarter of 2011 from $75.7 million in the same quarter last year. Total operating weeks decreased 0.2% to 1,103 from 1,105 due to the relocation of our Portland restaurant.
Average weekly sales for Ruth’s Chris Steak House were $72 thousand in the third quarter of 2011 compared to $70 thousand in the third quarter of 2010. Average weekly sales at Mitchell’s Fish Market were $66 thousand compared to $67 thousand in the prior year third quarter.
For the third quarter of 2011, Company-owned comparable restaurant sales at Ruth’s Chris Steak House increased 2.6%, which consisted of an entrée increase of 1.2% along with an average check increase of 1.4%. Comparable restaurant sales at Mitchell’s Fish Market decreased 0.7%, which consisted of an entrée decrease of 2.4% and an average check increase of 1.8%.
Franchise income increased 10.7% to $2.9 million in the third quarter of 2011 from $2.6 million in the prior year third quarter. Comparable franchise-owned restaurant sales increased 6.1% with strong growth in the international markets. In September, we opened a franchised restaurant in Grand Rapids, MI in the historic Amway Grand Hotel.
Operating income was $1.7 million in the third quarter of 2011 compared to $1.7 million in the prior year third quarter.
Net income available to preferred and common shareholders was $85 thousand, or $0.00 per diluted share, compared to a net loss of $477 thousand, or ($0.01) per diluted share, in the third quarter of 2010.
Financial Outlook
The following statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer all of you to our recent filings with the SEC for a more detailed discussion of the risks that could impact future operating results and financial conditions.
Based on current information, Ruth's Hospitality Group, Inc. is updating its previous 2011 outlook:
Conference Call
The Company will host a conference call to discuss third quarter 2011 financial results today at 8:00 AM Eastern Time. Hosting the call will be Mike O’Donnell, Chairman, President and Chief Executive Officer, and Arne Haak, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 877-419-6590 or for international callers by dialing 719-325-4746. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the password is 4774286. The replay will be available until November 2, 2011. The call will also be webcast live from the Company's website at www.rhgi.com under the investor relations section.
About Ruth’s Hospitality Group, Inc.
Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) is a leading restaurant company focused exclusively on the upscale dining segment. The Company owns the Ruth’s Chris Steak House, Mitchell’s Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse concepts. With more than 150 Company- and franchisee-owned locations worldwide, Ruth’s Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Fla.
For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: www.RuthsChris.com, www.MitchellsFishMarket.com, www.MitchellsSteakhouse.com and www.Camerons-Steakhouse.com. For more information about Ruth’s Hospitality Group, Inc., please visit www.rhgi.com.
RUTH'S HOSPITALITY GROUP, INC | ||||||||||||||||
Condensed Consolidated Statements of Income - Unaudited | ||||||||||||||||
(dollar amounts in thousands, except share and per share data) | ||||||||||||||||
13 Weeks Ending | 39 Weeks Ending | |||||||||||||||
September 26, | September 25, | September 26, | September 25, | |||||||||||||
2010 | 2011 | 2010 | 2011 | |||||||||||||
Revenues: | ||||||||||||||||
Restaurant sales | $ | 75,685 | $ | 77,087 | $ | 248,388 | $ | 258,198 | ||||||||
Franchise income | 2,645 | 2,928 | 8,358 | 8,866 | ||||||||||||
Other operating income | 282 | 171 | 3,226 | 2,868 | ||||||||||||
Total revenues | 78,612 | 80,186 | 259,972 | 269,932 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Food and beverage costs | 22,658 | 23,953 | 73,261 | 79,396 | ||||||||||||
Restaurant operating expenses | 42,286 | 43,419 | 132,197 | 134,770 | ||||||||||||
Marketing and advertising | 2,754 | 1,605 | 8,108 | 7,701 | ||||||||||||
General and administrative costs | 5,380 | 5,783 | 16,304 | 17,013 | ||||||||||||
Depreciation and amortization expenses | 3,839 | 3,616 | 11,583 | 10,976 | ||||||||||||
Pre-opening costs | 38 | 150 | 384 | 192 | ||||||||||||
Restructuring benefit | - | - | (1,683 | ) | (502 | ) | ||||||||||
Operating income | 1,657 | 1,660 | 19,818 | 20,386 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (1,000 | ) | (719 | ) | (3,318 | ) | (2,289 | ) | ||||||||
Other | 2 | (58 | ) | (142 | ) | (442 | ) | |||||||||
Income from continuing operations before income tax | 659 | 883 | 16,358 | 17,655 | ||||||||||||
Income tax expense | 260 | 114 | 3,821 | 1,145 | ||||||||||||
Income from continuing operations | 399 | 769 | 12,537 | 16,510 | ||||||||||||
Loss (income) from discontinued operations, net of income tax
benefit |
165 | (28 | ) | 1,211 | (425 | ) | ||||||||||
Net income | $ | 234 | $ | 797 | $ | 11,326 | $ | 16,935 | ||||||||
Preferred stock dividends | $ | 623 | $ | 623 | $ | 1,555 | $ | 1,870 | ||||||||
Accretion of preferred stock redemption value | $ | 88 | $ | 89 | $ | 220 | $ | 265 | ||||||||
Net income (loss) available to preferred and common shareholders | $ | (477 | ) | $ | 85 | $ | 9,551 | $ | 14,800 | |||||||
Basic earnings (loss) per common share: | ||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | - | $ | 0.27 | $ | 0.34 | |||||||
Discontinued operations | - | - | (0.03 | ) | 0.01 | |||||||||||
Basic earnings (loss) per share | $ | (0.01 | ) | $ | - | $ | 0.24 | $ | 0.35 | |||||||
Diluted earnings (loss) per common share: | ||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | - | $ | 0.27 | $ | 0.33 | |||||||
Discontinued operations | - | - | (0.03 | ) | 0.01 | |||||||||||
Diluted earnings (loss) per share | $ | (0.01 | ) | $ | - | $ | 0.24 | $ | 0.34 | |||||||
Shares used in computing net income per common share: | ||||||||||||||||
Basic | 33,975,061 | 34,147,353 | 32,025,538 | 34,074,330 | ||||||||||||
Diluted | 33,975,061 | 43,338,599 | 39,380,308 | 43,239,431 |
RUTH'S HOSPITALITY GROUP, INC | |||||
Selected Balance Sheet Data - Unaudited | |||||
(dollar amounts in thousands) | |||||
December 26, | September 25, | ||||
2010 | 2011 | ||||
Cash and cash equivalents | 5,018 | 2,548 | |||
Total assets | 249,069 | 237,677 | |||
Long-term debt | 51,000 | 39,400 | |||
Total shareholders' equity | 80,361 | 97,083 |
CONTACT:
For Ruth’s Hospitality Group, Inc.
Media
Alecia
Pulman, 203-682-8224
apulman@icrinc.com
or
Investor
Relations
Tom Ryan, 203-682-8200
tryan@icrinc.com