Ruby Tuesday Inc. (RT, Financial) filed Quarterly Report for the period ended 2008-12-02.
Ruby Tuesday operates casual dining concepts comprised of Ruby Tuesday Mozzarella's & Tia's. Ruby Tuesdays are casual full-service restaurants with whimsical artifacts classic brass & Tiffany lamps which create a comfortable nostalgic look & feel. Mozzarella's is a full-service restaurant with a menu that features a variety of pastas & thin-crust pizzas along with made-from-scratch soups entree salads & sandwiches. Tia's is a full-service casual dining restaurant. Ruby Tuesday Inc. has a market cap of $83.89 million; its shares were traded at around $1.29 with a P/E ratio of 4.8 and P/S ratio of 0.06. Ruby Tuesday Inc. had an annual average earning growth of 6.6% over the past 10 years.
charges totaling $58.1 million related to restaurant closures and impairments and the write-off of our goodwill as discussed in more detail below and in Note K to the Condensed Consolidated Financial Statements. Diluted loss per share for the 26 weeks ended December 2, 2008 was $0.72 compared to diluted earnings per share of $0.01 for the corresponding period of the prior year. The change in diluted loss/earnings per share is a result of a decrease in net income as discussed below.
Franchise revenue for the 13 weeks ended December 2, 2008 decreased 41.0% to $2.1 million compared to the same period of the prior year. Franchise revenue is predominately comprised of domestic and international royalties, which totaled $1.9 million and $3.1 million for the 13-week periods ended December 2, 2008 and December 4, 2007, respectively. This decrease is due to a decline in royalties from domestic franchisees as a result of temporarily reduced royalty rates for certain franchisees, a decrease in same-restaurant sales for domestic franchise Ruby Tuesday restaurants of 6.2% in the second fiscal quarter of fiscal 2008, and the acquisitions of franchisees in the prior year.
For the 26-week period ended December 2, 2008, franchise revenues decreased 33.6% to $4.9 million compared to $7.3 million for the same period in the prior year. Domestic and international royalties totaled $4.5 million and $6.8 million for the 26-week periods ending December 2, 2008 and December 4, 2007, respectively. This decrease is due to a decline in royalties from domestic franchisees as a result of temporarily reduced royalty rates for certain franchisees, a decrease in same-restaurant sales for domestic franchise Ruby Tuesday restaurants of 7.1% for the 26 weeks ended December 2, 2008, and the acquisitions of franchisees in the prior year, as previously discussed.
Under our accounting policy, we do not recognize franchise fee revenue for any franchise partnership with negative cash flows at times when the negative cash flows are deemed to be anything other than temporary and the franchise has either borrowed directly from us or through a facility for which we provide a guarantee. Accordingly, we have deferred recognition of a portion of franchise revenue from certain franchise partnerships. Unearned income for franchise fees was $1.5 million and $3.4 million as of December 2, 2008 and June 3, 2008, respectively, which are included in other deferred liabilities and/or accrued liabilities rent and other in the Condensed Consolidated Balance Sheets. The reduction in unearned income is primarily attributable to fee rebates given to certain franchise partnerships during the first two quarters of fiscal 2009. These franchise fee rebates were recognized by the franchise partnerships as income. For 50%-owned franchise partnerships, these rebates created income of $1.0 million which is included in Equity in losses of unconsolidated franchises in the Condensed Consolidated Statement of Operations for the 26 weeks ended December 2, 2008, as discussed below.
Pre-tax loss increased to $69.9 million for the 13 weeks ended December 2, 2008, over the corresponding period of the prior year. For the 26-week period ended December 2, 2008, pre-tax loss was $69.5 million compared to pre-tax income of $0.7 million for the same period of the prior year. The increase in pre-tax loss for both the 13- and 26-week periods is primarily due to a decrease of 10.8% in same-restaurant sales at Company-owned restaurants, closures and impairment expenses of $37.2 million and $39.2 million for the 13- and 26-week periods ended December 2, 2008, respectively, goodwill impairment of $19.0 million, combined with increases, as a percentage of restaurant sales and operating revenue or total revenue, as appropriate, of payroll and related costs, other restaurant operating costs, and interest expense, net. These higher costs were offset by lower, as a percentage of restaurant sales and operating revenue or total revenue, as appropriate, cost of merchandise, depreciation, and selling, general and administrative expenses, net.
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Ruby Tuesday operates casual dining concepts comprised of Ruby Tuesday Mozzarella's & Tia's. Ruby Tuesdays are casual full-service restaurants with whimsical artifacts classic brass & Tiffany lamps which create a comfortable nostalgic look & feel. Mozzarella's is a full-service restaurant with a menu that features a variety of pastas & thin-crust pizzas along with made-from-scratch soups entree salads & sandwiches. Tia's is a full-service casual dining restaurant. Ruby Tuesday Inc. has a market cap of $83.89 million; its shares were traded at around $1.29 with a P/E ratio of 4.8 and P/S ratio of 0.06. Ruby Tuesday Inc. had an annual average earning growth of 6.6% over the past 10 years.
Highlight of Business Operations:
Net loss increased to $37.4 million for the 13 weeks ended December 2, 2008 compared to $10.4 million for the same quarter of the previous year. Included in the most recent periods loss are pre-tax charges totaling $56.2 million related to restaurant closures and impairments and the write-off of our goodwill as discussed in more detail below and in Note K to the Condensed Consolidated Financial Statements. Diluted loss per share for the fiscal quarter ended December 2, 2008 increased to $0.73 compared to $0.20 for the corresponding period of the prior year as a result of an increase in net loss as discussed below.charges totaling $58.1 million related to restaurant closures and impairments and the write-off of our goodwill as discussed in more detail below and in Note K to the Condensed Consolidated Financial Statements. Diluted loss per share for the 26 weeks ended December 2, 2008 was $0.72 compared to diluted earnings per share of $0.01 for the corresponding period of the prior year. The change in diluted loss/earnings per share is a result of a decrease in net income as discussed below.
Franchise revenue for the 13 weeks ended December 2, 2008 decreased 41.0% to $2.1 million compared to the same period of the prior year. Franchise revenue is predominately comprised of domestic and international royalties, which totaled $1.9 million and $3.1 million for the 13-week periods ended December 2, 2008 and December 4, 2007, respectively. This decrease is due to a decline in royalties from domestic franchisees as a result of temporarily reduced royalty rates for certain franchisees, a decrease in same-restaurant sales for domestic franchise Ruby Tuesday restaurants of 6.2% in the second fiscal quarter of fiscal 2008, and the acquisitions of franchisees in the prior year.
For the 26-week period ended December 2, 2008, franchise revenues decreased 33.6% to $4.9 million compared to $7.3 million for the same period in the prior year. Domestic and international royalties totaled $4.5 million and $6.8 million for the 26-week periods ending December 2, 2008 and December 4, 2007, respectively. This decrease is due to a decline in royalties from domestic franchisees as a result of temporarily reduced royalty rates for certain franchisees, a decrease in same-restaurant sales for domestic franchise Ruby Tuesday restaurants of 7.1% for the 26 weeks ended December 2, 2008, and the acquisitions of franchisees in the prior year, as previously discussed.
Under our accounting policy, we do not recognize franchise fee revenue for any franchise partnership with negative cash flows at times when the negative cash flows are deemed to be anything other than temporary and the franchise has either borrowed directly from us or through a facility for which we provide a guarantee. Accordingly, we have deferred recognition of a portion of franchise revenue from certain franchise partnerships. Unearned income for franchise fees was $1.5 million and $3.4 million as of December 2, 2008 and June 3, 2008, respectively, which are included in other deferred liabilities and/or accrued liabilities rent and other in the Condensed Consolidated Balance Sheets. The reduction in unearned income is primarily attributable to fee rebates given to certain franchise partnerships during the first two quarters of fiscal 2009. These franchise fee rebates were recognized by the franchise partnerships as income. For 50%-owned franchise partnerships, these rebates created income of $1.0 million which is included in Equity in losses of unconsolidated franchises in the Condensed Consolidated Statement of Operations for the 26 weeks ended December 2, 2008, as discussed below.
Pre-tax loss increased to $69.9 million for the 13 weeks ended December 2, 2008, over the corresponding period of the prior year. For the 26-week period ended December 2, 2008, pre-tax loss was $69.5 million compared to pre-tax income of $0.7 million for the same period of the prior year. The increase in pre-tax loss for both the 13- and 26-week periods is primarily due to a decrease of 10.8% in same-restaurant sales at Company-owned restaurants, closures and impairment expenses of $37.2 million and $39.2 million for the 13- and 26-week periods ended December 2, 2008, respectively, goodwill impairment of $19.0 million, combined with increases, as a percentage of restaurant sales and operating revenue or total revenue, as appropriate, of payroll and related costs, other restaurant operating costs, and interest expense, net. These higher costs were offset by lower, as a percentage of restaurant sales and operating revenue or total revenue, as appropriate, cost of merchandise, depreciation, and selling, general and administrative expenses, net.
Read the The complete ReportMore on RT:
Gurus buys and sells of RT
10-year financial history of RT.
Insider buys/sells of RT.
