Ruth’s Hospitality Group, Inc. Reports Third Quarter 2013 Financial Results
- Total Revenues Increase 5.0% - 11/01 04:00 AM
WINTER PARK, Fla.--(BUSINESS WIRE)-- Ruth’s Hospitality Group, Inc. today reported unaudited financial results for its third quarter ended September 29, 2013.
Highlights for the third quarter of 2013 compared to the third quarter of 2012 were as follows:
The Company reported net income of $2.9 million or $0.08 per diluted share in the third quarter of 2013, compared to net income of $0.8 million or $0.02 per diluted share in the third quarter of 2012.
Net income in the third quarter of 2013 included a non-recurring $1.3 million after-tax benefit related to two insurance settlements.
Excluding the non-recurring insurance settlement benefit and results from discontinued operations, non-GAAP diluted earnings per common share was $0.05 in the third quarter of 2013 compared to $0.02 in the third quarter of 2012. The Company believes that non-GAAP earnings per diluted share, which excludes non-recurring and non-operating items from both periods, provides a useful alternative measure of financial performance. Investors are advised to see the attached Reconciliation of Non-GAAP Financial Measures table for additional information.
Restaurant sales in the third quarter increased 4.3% to $84.4 million compared to $80.9 million in the prior year.
Company-owned comparable restaurant sales for Ruth’s Chris Steak House increased 4.2%.
Company-owned comparable restaurant sales for Mitchell’s Fish Market decreased 1.4%.
Total operating costs in the third quarter, excluding the non-recurring insurance settlements, increased 4.2%, or $3.5 million compared to the third quarter of 2012.
Food and beverage costs, as a percentage of restaurant sales, decreased 44 basis points in the third quarter to 31.4% due to changes in menu mix coupled with a cumulative menu pricing increase of 1.7%.
Restaurant operating expenses, as a percentage of restaurant sales, were flat in the third quarter at 55.5%.
General and administrative expenses increased $1.3 million to $7.3 million in the quarter.
At the end of the third quarter of 2013, the Company had $37.0 million in debt outstanding under its senior credit facility, a decrease of $3.0 million from $40.0 million at the end of the second quarter and a decrease of $32.0 million from the end of the third quarter of 2012. Additionally, the Company’s Board of Directors, as part of the Company’s focus on shareholder returns, has approved the payment of a quarterly cash dividend to shareholders of $0.04 per share. This dividend will be paid to shareholders on November 26, 2013 to all common shareholders of record as of the close of business on November 14, 2013.
“We are pleased to see our business momentum carry into the third quarter,” stated Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc. (RUTH:$12.17,00$0.00,000.00%) “Our revenue growth of 5.0% was driven by another comparable restaurant sales increase at Ruth’s Chris Steak House that included a continuation of solid traffic gains. Our development activity continues to bear fruit, exhibited by four new leases signed, and we expect new unit activity to increasingly contribute to our growth going forward. With a healthy capital structure and growing profitability, we are well-positioned to reinvest in our existing business, continue to invest in new restaurant development and return capital to shareholders.”
