Ruby Tuesday, Inc. (NYSE: RT) today reported financial results for the fiscal fourth quarter ended June 5, 2012.
Results for fourth quarter 2012 compared to fourth quarter 2011 include:
- Same-restaurant sales decreased 4.6% at Company-owned Ruby Tuesday restaurants
- Net loss of $5.8 million, or net income of $13.3 million excluding the following pre-tax expenses: goodwill impairment costs of $16.9 million, debt prepayment penalties and deferred loan fee write-offs related to the high yield transaction of $4.8 million, retirement and severance costs of $4.4 million, restaurant closure costs of $3.8 million, and Lime Fresh Mexican Grill® (“Lime Fresh”) deferred development fee write-off of $1.0 million. This compares to prior-year net income of $13.9 million, or $16.3 million on an adjusted basis. We have included a reconciliation of these items and the related earnings per share impact on the Investor Relations page of the Ruby Tuesday website: www.rubytuesday.com.
- Diluted loss per share of $0.09, or diluted earnings per share of $0.21 excluding the impact of the items noted above, compared to diluted earnings per share of $0.21 for the prior year, or $0.25 on an adjusted basis
Sandy Beall, Founder, Chairman, and CEO, commented on the quarterly results, saying, “Our same-restaurant sales for the fourth quarter were roughly in line with our expectations as we pared back our level of couponing while continuing to test our television marketing programs. Our earnings performance for the quarter excluding the items noted above was slightly below our expectations primarily due to unfavorable year-end tax adjustments, higher health plan costs, and higher interest expense resulting from our high yield bond offering. As of the beginning of fiscal 2013 our television marketing program has been implemented in all of our markets. Since the system-wide rollout, and in tandem with our balanced promotional levels, sales trends have improved and we are now estimating first quarter same-restaurant sales to be up approximately 2%. While the first quarter sales trends to date are encouraging, we still have much work ahead of us to fully stabilize our traffic patterns and consistently grow our sales in an environment that we believe will continue to be very promotional with heavy advertising levels by our primary competitors.”