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):
February
10, 2012
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)
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 February 10, 2012, the Company issued a press release announcing its earnings results for its fiscal fourth quarter ended December 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 February 10, 2012.
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: |
February 10, 2012 |
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 February 10, 2012. |
Exhibit 99.1
Ruth’s Hospitality Group, Inc. Reports Full Year and Fourth Quarter 2011 Financial Results
Full Year Net Income Available to Shareholders Increases 24% to $16.7 million
WINTER PARK, Fla.--(BUSINESS WIRE)--February 10, 2012--Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for the full year and fourth quarter ended December 25, 2011.
Highlights for the fourth quarter and full year 2011 compared to the fourth quarter and full year 2010 were as follows:
Revenues: Total revenues in the fourth quarter rose 7.1% to $99.6 million compared to $93.0 million in the prior year. Total revenues in full year 2011 rose 4.7% to $369.6 million compared to $353.0 million in the prior year.
Operating expenses: Operating expenses increased by $9 million or 10.3% in the fourth quarter of 2011 compared to the fourth quarter of 2010.
Net income: Net income available to preferred and common shareholders in the fourth quarter decreased to $1.9 million, or diluted earnings per common share of $0.04, compared to net income of $3.9 million, or diluted earnings per common share of $0.09, in the fourth quarter of 2010.
Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “We’re extremely pleased with the continued momentum of the Ruth’s Chris brand. Our same store sales growth of 7.7% at Ruth’s, on top of last year’s 9.2% increase, demonstrates our ongoing focus on exemplary service and distinctive, high-quality offerings. It also marks the seventh consecutive quarter of comparable sales growth and our eighth consecutive quarter of traffic gains in the Ruth’s Chris brand. We’re also encouraged that Mitchell’s same store sales continued its upward trajectory and returned to positive territory during the quarter. As we announced earlier this week, we are transitioning the leadership at Mitchell’s from Sam Tancredi to Pete Beadrault. Pete brings to Mitchell’s a broad multi-unit operator history and a record of positioning concepts for growth and profitability. We are thankful for Sam’s efforts over the last three years and look forward to Pete’s future contributions. Looking ahead to 2012, while food inflation is expected to provide continued cost challenges, we believe that through the efforts of our entire team, we have further strengthened our brand during the past year and believe we are well positioned to take advantage of continued improvement in the upscale dining segment during 2012.”
Review of Fourth Quarter 2011 Operating Results
Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income, were $99.6 million in the fourth quarter of 2011 compared to $93.0 million in the same quarter last year.
Company-owned restaurant sales increased 6.8% to $95.4 million for the fourth quarter of 2011 from $89.3 million in the same quarter last year. Total operating weeks for the quarter were flat year-over-year at 1,105.
Ruth’s Chris Steak House Sales
Mitchell’s Fish Market Sales
Franchise Income
Operating Expenses
Net income: Net income available to preferred and common shareholders in the fourth quarter decreased to $1.9 million, or diluted earnings per common share of $0.04, compared to net income available to preferred and common shareholders of $3.9 million, or diluted earnings per common share of $0.09, in the fourth 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 providing the following 2012 outlook:
Conference Call
The Company will host a conference call to discuss fourth quarter 2011 financial results today at 8:30 AM Eastern Standard Time. Hosting the call will be Mike O’Donnell, Chairman, President and Chief Executive Officer, and Arne Haak, Executive Vice President and Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 888-329-8903 or for international callers by dialing 719-457-2632. 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 2074549. The replay will be available until February 17, 2012. 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 AND SUBSIDIARIES | |||||||||||||||||||||||||
| Condensed Consolidated Statements of Income - Unaudited | |||||||||||||||||||||||||
| (dollar amounts in thousands, except share and per share data) | |||||||||||||||||||||||||
| 13 Weeks Ending | 52 Weeks Ending | ||||||||||||||||||||||||
| December 26, | December 25, | December 26, | December 25, | ||||||||||||||||||||||
| 2010 | 2011 | 2010 | 2011 | ||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||
| Restaurant sales | $ | 89,333 | $ | 95,409 | $ | 337,721 | $ | 353,606 | |||||||||||||||||
| Franchise income | 3,174 | 3,598 | 11,532 | 12,464 | |||||||||||||||||||||
| Other operating income | 497 | 634 | 3,722 | 3,503 | |||||||||||||||||||||
| Total revenues | 93,004 | 99,641 | 352,975 | 369,573 | |||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||
| Food and beverage costs | 27,215 | 30,179 | 100,475 | 109,577 | |||||||||||||||||||||
| Restaurant operating expenses | 45,341 | 48,560 | 177,538 | 183,294 | |||||||||||||||||||||
| Marketing and advertising | 3,361 | 4,106 | 11,469 | 11,806 | |||||||||||||||||||||
| General and administrative costs | 6,496 | 5,789 | 22,800 | 22,803 | |||||||||||||||||||||
| Depreciation and amortization expenses | 3,776 | 3,884 | 15,360 | 14,859 | |||||||||||||||||||||
| Pre-opening costs | 3 | - | 387 | 192 | |||||||||||||||||||||
| Loss on impairment | 805 | 3,042 | 805 | 3,042 | |||||||||||||||||||||
| Restructuring benefit | - | - | (1,683 | ) | (502 | ) | |||||||||||||||||||
| Loss on the disposal of property and equipment, net | 21 | 436 | 21 | 436 | |||||||||||||||||||||
| Operating income | 5,986 | 3,645 | 25,803 | 24,066 | |||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||
| Interest expense, net | (927 | ) | (605 | ) | (4,244 | ) | (2,892 | ) | |||||||||||||||||
| Other | 161 | (7 | ) | 20 | (486 | ) | |||||||||||||||||||
| Income from continuing operations before income tax expense | 5,220 | 3,033 | 21,579 | 20,688 | |||||||||||||||||||||
| Income tax expense | 948 | 451 | 4,769 | 1,597 | |||||||||||||||||||||
| Income from continuing operations | 4,272 | 2,582 | 16,810 | 19,091 | |||||||||||||||||||||
| Loss (income) on discontinued operations, net of income tax benefit (expense) | (358 | ) | (33 | ) | 853 | (458 | ) | ||||||||||||||||||
| Net income | $ | 4,630 | $ | 2,615 | $ | 15,957 | $ | 19,549 | |||||||||||||||||
| Preferred stock dividends | 623 | 623 | 2,178 | 2,493 | |||||||||||||||||||||
| Accretion of preferred stock redemption value | 88 | 88 | 309 | 353 | |||||||||||||||||||||
| Net income available to preferred and common shareholders | $ | 3,919 | $ | 1,904 | $ | 13,470 | $ | 16,703 | |||||||||||||||||
| Basic earnings per common share: | |||||||||||||||||||||||||
| Continuing operations | $ | 0.08 | $ | 0.04 | $ | 0.36 | $ | 0.38 | |||||||||||||||||
| Discontinued operations | 0.01 | - | (0.02 | ) | 0.01 | ||||||||||||||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.34 | $ | 0.39 | |||||||||||||||||
| Diluted earnings per common share: | |||||||||||||||||||||||||
| Continuing operations | $ | 0.08 | $ | 0.04 | $ | 0.36 | $ | 0.38 | |||||||||||||||||
| Discontinued operations | 0.01 | - | (0.02 | ) | 0.01 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.34 | $ | 0.39 | |||||||||||||||||
| Shares used in computing net income per common share: | |||||||||||||||||||||||||
| Basic | 33,978,855 | 34,149,429 | 32,513,867 | 34,093,104 | |||||||||||||||||||||
| Diluted | 42,981,033 | 43,324,815 | 40,239,854 | 43,252,101 | |||||||||||||||||||||
| RUTH'S HOSPITALITY GROUP, INC AND SUBSIDIARIES | ||||||||||||||||
| Selected Balance Sheet Data | ||||||||||||||||
| (Unaudited - dollar amounts in thousands) | ||||||||||||||||
| December 26, | December 25, | |||||||||||||||
| 2010 | 2011 | |||||||||||||||
| Cash and cash equivalents | $ | 5,018 | $ | 3,925 | ||||||||||||
| Total assets | 249,069 | 240,682 | ||||||||||||||
| Long-term debt | 51,000 | 22,000 | ||||||||||||||
| Total shareholders' equity | 80,361 | 99,640 | ||||||||||||||
Non-GAAP Measure
We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our press release, we make reference to non-GAAP diluted earnings per common share. This non-GAAP measurement was calculated by excluding certain non-cash items and income (loss) on discontinued operations. This non-GAAP measurement has been included as supplemental information. We believe that this measure represents a useful internal measure of performance. Accordingly, where this non-GAAP measure is provided, it is done so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in assessing our underlying performance on a quarter-over-quarter basis. However, because this measure is not determined in accordance with accounting principles generally accepted in the United States, such a measure is susceptible to varying calculations and not all companies calculate the measure in the same manner. As a result, the aforementioned measure as presented may not be directly comparable to a similarly titled measure presented by other companies. This non-GAAP measure is presented as supplemental information and not as alternatives to any GAAP measurements.
| Reconciliation of Non-GAAP Financial Measure | |||||||||||||||
| (Unaudited - amounts in dollars) | |||||||||||||||
| 13 Weeks Ending | |||||||||||||||
| December 26, | December 25, | ||||||||||||||
| 2010 | 2011 | ||||||||||||||
| GAAP diluted earnings per common share | $ | 0.09 | $ | 0.04 | |||||||||||
| Net of tax impact of excluding certain non-cash items - see Note | 0.01 | 0.07 | |||||||||||||
| Net of tax impact of excluding income on discontinued operations | (0.01 | ) | |||||||||||||
| Non-GAAP diluted earnings per common share | $ | 0.09 | $ | 0.11 | |||||||||||
| Note - excluded after tax impacts of loss on impairment and loss on disposal of property and equipment. | |||||||||||||||
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
or
Fitzhugh
Taylor, 203-682-8261
ftaylor@icrinc.com