EX-99.2 3 ruth-ex992_43.htm EX-99.2 ruth-ex992_43.htm

Exhibit 99.2

Reconciliation of Non-GAAP Financial Measures

We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). Within our investor presentation materials, we make reference to adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), a non-GAAP financial measure. We believe that this measurement represents a useful internal measure of performance. Accordingly, where we provide a non-GAAP measure like Adjusted EBITDA, 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. However, because Adjusted EBITDA is not determined in accordance with GAAP, it is susceptible to varying calculations and not all companies calculate the measure in the same manner. As a result, Adjusted EBITDA as presented may not be directly comparable to a similarly titled measure presented by other companies. Adjusted EBITDA is presented as supplemental information and not as an alternative to any GAAP measurements.

Reconciliation of Non-GAAP Financial Measures - Unaudited

(amounts in thousands)

 

 

 

Fiscal Year

 

 

 

2008 (1)

 

 

2009 (1)

 

 

2010

 

 

2011

 

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

Net income (loss)

 

$

(53,883

)

 

$

2,419

 

 

$

15,957

 

 

$

19,549

 

 

$

16,379

 

 

$

22,489

 

 

$

16,455

 

 

$

30,004

 

 

$

30,465

 

Interest expense

 

 

10,334

 

 

 

7,756

 

 

 

4,244

 

 

 

2,892

 

 

 

3,171

 

 

 

1,640

 

 

 

1,159

 

 

 

790

 

 

 

1,154

 

Income tax expense (benefit)

 

 

(26,844

)

 

 

99

 

 

 

5,026

 

 

 

2,963

 

 

 

7,855

 

 

 

10,744

 

 

 

11,830

 

 

 

14,168

 

 

 

15,660

 

Depreciation and amortization expenses

 

 

12,757

 

 

 

13,217

 

 

 

12,182

 

 

 

11,516

 

 

 

11,050

 

 

 

10,229

 

 

 

10,917

 

 

 

12,520

 

 

 

13,434

 

Impact of excluding a cumulative catch-up adjustment from a change in accounting estimate related to gift card breakage revenue

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,306

 

 

 

-

 

 

 

-

 

 

 

-

 

Loss on impairment and asset disposals, net

 

 

24,355

 

 

 

9,640

 

 

 

483

 

 

 

436

 

 

 

3,262

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Restructuring expense (benefit)

 

 

5,195

 

 

 

56

 

 

 

(1,457

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain on settlements, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(683

)

 

 

(1,719

)

 

 

-

 

 

 

-

 

 

 

-

 

Certain restaurant closing and rent dispute costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

278

 

Loss (income) on discontinued operations, net of tax

 

 

60,546

 

 

 

(615

)

 

 

(160

)

 

 

(171

)

 

 

(187

)

 

 

2,004

 

 

 

10,255

 

 

 

162

 

 

 

290

 

Adjusted EBITDA

 

$

32,460

 

 

$

32,572

 

 

$

36,275

 

 

$

37,185

 

 

$

40,847

 

 

$

46,693

 

 

$

50,616

 

 

$

57,644

 

 

$

61,281

 

 

(1) The net income (loss) for fiscal years 2008 and 2009 were last reported on Form 10-K for the fiscal years 2012 and 2013, respectively. The operating results of eighteen Mitchell's Fish Market and three Cameron's/Mitchell's Steakhouse restaurants sold in January 2015 and three Ruth's Chris Steak House restaurants closed in 2014 have been reclassified to discontinued operations. These reclassifications had no effect on previously reported net income.