Ruby Tuesday Inc. (RT, Financial) filed Quarterly Report for the period ended 2009-12-01.
Ruby Tuesday Inc. has a market cap of $512.1 million; its shares were traded at around $7.94 with a P/E ratio of 12.6 and P/S ratio of 0.4. Ruby Tuesday Inc. had an annual average earning growth of 6.6% over the past 10 years.RT is in the portfolios of Westport Asset Management, Chuck Royce of ROYCE & ASSOCIATES.
Net income increased to $0.4 million for the 13 weeks ended December 1, 2009 compared to a net loss of $37.4 million for the same quarter of the previous year. Diluted earnings/(loss) per share for the fiscal quarter ended December 1, 2009 was $0.01 compared to $(0.73) for the corresponding period of the prior year as a result of the increase in net income as discussed below.
Net income increased to $6.6 million for the 26 weeks ended December 1, 2009 compared to a net loss of $37.1 million for the same period of the previous year. Diluted earnings/(loss) per share for the 26 weeks ended December 1, 2009 was $0.11 compared to $(0.72) for the corresponding period of the prior year as a result of the increase in net income as discussed below.
For the 26-week period ended December 1, 2009, franchise revenues decreased 40.5% to $2.9 million compared to $4.9 million for the same period in the prior year. Domestic and international royalties totaled $2.8 million and $4.5 million for the 26-week periods ending December 1, 2009 and December 2, 2008, respectively. This decrease is due to a decline in royalties from domestic franchisees as a result of temporarily reduced royalty rates for certain franchisees and a decrease in same-restaurant sales for domestic franchise Ruby Tuesday restaurants of 5.6% for the 26 weeks ended December 1, 2009.
Pre-tax income was $0.8 million for the 13 weeks ended December 1, 2009, compared to a pre-tax loss of $69.9 million for the same period of the prior year. The increase in pre-tax income from the prior year is due in significant part to reductions in impairment charges as we impaired our goodwill ($19.0 million) and announced a plan to restructure our property portfolio which resulted in closures and impairments expense of $37.2 million during the second quarter of the prior year. The increase also included the elimination of $2.7 million in pre-tax losses recorded in the second quarter of fiscal 2009 on the 54 restaurants closed during fiscal 2009, as well as lower payroll and related costs, other restaurant operating costs, depreciation, selling, general and administrative expense, net, and interest expense, net. These lower costs were partially offset by a decline of 1.7% in same-restaurant sales at Company-owned restaurants.
For the 26-week period ended December 1, 2009, pre-tax income was $8.3 million compared to a pre-tax loss of $69.5 million for the same period of the prior year. The increase in pre-tax income from the prior year is due in significant part to reductions in impairment charges as we impaired our goodwill ($19.0 million) and announced a plan to restructure our property portfolio which resulted in closures and impairments expense of $39.1 million during the first 26 weeks of the prior year. The increase also included the elimination of $5.5 million in pre-tax losses recorded in the first two quarters of fiscal 2009 on the 54 restaurants closed during fiscal 2009, as well as lower payroll and related costs, other restaurant operating costs, depreciation, selling, general and administrative expense, net, and interest expense, net. These lower costs were partially offset by a decline of 2.4% in same-restaurant sales at Company-owned restaurants, lower franchise revenue, and higher cost of merchandise and equity in losses of unconsolidated franchises.
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Ruby Tuesday Inc. has a market cap of $512.1 million; its shares were traded at around $7.94 with a P/E ratio of 12.6 and P/S ratio of 0.4. Ruby Tuesday Inc. had an annual average earning growth of 6.6% over the past 10 years.RT is in the portfolios of Westport Asset Management, Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
We generated $48.3 million of free cash flow in the first two quarters of fiscal 2010, all of which was dedicated to the reduction of debt. We anticipate total capital spending in fiscal 2010 to be $18.0 to $20.0 million. We also estimate we will generate $45.0 million to $55.0 million of free cash flow during the remainder of fiscal 2010, a substantial portion of which will be dedicated to the reduction of debt. Similarly, we intend to use free cash flow generated in the next couple of years following fiscal 2010 to reduce debt. Our objective is to reduce debt as quickly as possible to strengthen our balance sheet and reduce the financial risk related to our leverage. As another means of reducing our bank debt and strengthening our balance sheet, on July 28, 2009, we closed an underwritten public offering of 11.5 million shares of Ruby Tuesday, Inc. common stock. The $73.1 million net proceeds raised in the equity offering was also used to reduce our outstanding debt. See further discussion in the Financing Activities section of this Management s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”).Net income increased to $0.4 million for the 13 weeks ended December 1, 2009 compared to a net loss of $37.4 million for the same quarter of the previous year. Diluted earnings/(loss) per share for the fiscal quarter ended December 1, 2009 was $0.01 compared to $(0.73) for the corresponding period of the prior year as a result of the increase in net income as discussed below.
Net income increased to $6.6 million for the 26 weeks ended December 1, 2009 compared to a net loss of $37.1 million for the same period of the previous year. Diluted earnings/(loss) per share for the 26 weeks ended December 1, 2009 was $0.11 compared to $(0.72) for the corresponding period of the prior year as a result of the increase in net income as discussed below.
For the 26-week period ended December 1, 2009, franchise revenues decreased 40.5% to $2.9 million compared to $4.9 million for the same period in the prior year. Domestic and international royalties totaled $2.8 million and $4.5 million for the 26-week periods ending December 1, 2009 and December 2, 2008, respectively. This decrease is due to a decline in royalties from domestic franchisees as a result of temporarily reduced royalty rates for certain franchisees and a decrease in same-restaurant sales for domestic franchise Ruby Tuesday restaurants of 5.6% for the 26 weeks ended December 1, 2009.
Pre-tax income was $0.8 million for the 13 weeks ended December 1, 2009, compared to a pre-tax loss of $69.9 million for the same period of the prior year. The increase in pre-tax income from the prior year is due in significant part to reductions in impairment charges as we impaired our goodwill ($19.0 million) and announced a plan to restructure our property portfolio which resulted in closures and impairments expense of $37.2 million during the second quarter of the prior year. The increase also included the elimination of $2.7 million in pre-tax losses recorded in the second quarter of fiscal 2009 on the 54 restaurants closed during fiscal 2009, as well as lower payroll and related costs, other restaurant operating costs, depreciation, selling, general and administrative expense, net, and interest expense, net. These lower costs were partially offset by a decline of 1.7% in same-restaurant sales at Company-owned restaurants.
For the 26-week period ended December 1, 2009, pre-tax income was $8.3 million compared to a pre-tax loss of $69.5 million for the same period of the prior year. The increase in pre-tax income from the prior year is due in significant part to reductions in impairment charges as we impaired our goodwill ($19.0 million) and announced a plan to restructure our property portfolio which resulted in closures and impairments expense of $39.1 million during the first 26 weeks of the prior year. The increase also included the elimination of $5.5 million in pre-tax losses recorded in the first two quarters of fiscal 2009 on the 54 restaurants closed during fiscal 2009, as well as lower payroll and related costs, other restaurant operating costs, depreciation, selling, general and administrative expense, net, and interest expense, net. These lower costs were partially offset by a decline of 2.4% in same-restaurant sales at Company-owned restaurants, lower franchise revenue, and higher cost of merchandise and equity in losses of unconsolidated franchises.
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