Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its fourth quarter and full year ended December 30, 2012.
Highlights for the 14-week fourth quarter of 2012 compared to the 13-week fourth quarter of 2011 were as follows:
Net income was $3.6 million or $0.10 per diluted share in the fourth quarter of 2012 compared to net income applicable to preferred and common shareholders of $1.9 million or $0.04 per diluted share in the fourth quarter of 2011.
- Expenses in the fourth quarter of 2012 included a $683 thousand gain on the settlement of unclaimed property liabilities and a $4.96 million net charge related to the future relocation of one restaurant, the non-cash impairment of assets at two other units, and the disposal of property and equipment. Expenses in the fourth quarter of 2011 included a $3.0 million non-cash charge for the impairment of an intangible asset and a $0.4 million non-cash loss on the disposal of property and equipment related to restaurant renovations.
- Excluding these non-cash charges and income from discontinued operations, non-GAAP diluted earnings per common share was $0.18 compared to $0.09 in the prior year period. 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.
- The Company’s fourth quarter of 2012 consisted of 14 weeks compared to 13 weeks in the fourth quarter of 2011. The Company estimates that the extra week increased earnings by approximately $0.02 per share.
“We are extremely pleased with the continued strength of our business during the fourth quarter,” stated Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc. “Our same store sales increase of 5.4% at Ruth Chris Steak House marked the 11 th consecutive quarter of improvement and represents over 20% growth over the last three years. We’re also pleased with the continued progress at Mitchell’s Fish Market that resulted in a third straight quarter of same store sales growth. Together, our top-line growth drove strong earnings during the quarter.”“2012 was a year of significant accomplishments that not only resulted in strong results for the year, but will also provide benefits going forward,” added O’Donnell. “These results reflect the hard work and tireless dedication of our teammates and valued franchise partners. In addition to the consistent sales growth and improved earnings, we successfully refinanced our credit facility and retired our entire class of preferred shares. Furthermore, we have seen our new unit pipeline grow stronger and gain momentum with increased openings during the year, and we are on pace for further new unit growth in the year ahead. As we enter 2013, we believe that we are better positioned for improved earnings and cash flow, while maintaining the balance sheet flexibility to continue to invest in our business and create long-term value for our shareholders.”