Ruby Tuesday Reports First Quarter Fiscal 2016 Results

  • Same-Restaurant Sales increased 0.6%
  • Adjusted EBITDA of $15.0 million
  • Fiscal 2016 Guidance reaffirmed

MARYVILLE, Tenn. - October 08, 2015 - (BUSINESS WIRE) - Ruby Tuesday, Inc. (NYSE: RT) today reported financial results for the fiscal first quarter ended September 1, 2015.

First Quarter Financial Performance Highlights

  • Total revenue was $279.5 million, a decrease from last year of $1.7 million, or 0.6%, primarily due to a net reduction of 11 Company-owned restaurants compared to the first quarter last year, partially offset by a same-restaurant sales increase of 0.6% at Company-owned Ruby Tuesday restaurants.
  • First quarter same-restaurant sales of 0.6% were negatively impacted by approximately 30 basis points due to the Labor Day holiday being reported in our first quarter last year versus being reported in our second quarter this year. Year-over-year guest counts were down 2.9% for the quarter.
  • Adjusted EBITDA* was $15.0 million compared to $20.1 million in the same quarter last year.
  • Net Loss was $4.2 million or ($0.07) per share. Adjusted Net Loss* was $1.6 million or ($0.03) per share.
  • During the quarter, the Company prepaid and retired ten mortgage loan obligations with a June 2, 2015 outstanding balance of $8.3 million using cash on hand.
  • As of September 1, 2015, the Company had cash on hand of $56.9 million.

*A reconciliation of non-GAAP information is included in the schedules accompanying the financial statements in this release.

Comments on First Quarter Results

JJ Buettgen, Chairman of the Board, President, and CEO, commented, “We were pleased with positive same-restaurant sales in the quarter, on top of a relatively strong sales performance in the first quarter of last year. Our same-restaurant sales gain reflected check growth partially offset by a decline in guest counts during the quarter.

“Year-over-year first quarter restaurant-level margins and profitability contracted primarily due to an increase in other restaurant operating costs, mainly repair and maintenance expense and other restaurant supplies. We accelerated spending in these critical areas to ensure our restaurant facilities support the delivery of a consistently great guest experience. These were necessary investments that will support positive results in the future. Further, we expect our inventory management system, which was fully rolled out in the first quarter, will benefit restaurant level margins in the back-half of this fiscal year and expect restaurant level margins to be in-line with guidance for the year.”

Buettgen continued, “We made progress in the quarter on our four key brand transformation pillars – menu, service, communication and atmosphere. As a result of these efforts, we are excited about our product innovation pipeline, have broadened our communication strategies to include digital and social platforms, have improved guest satisfaction metrics on quality, taste, pace of meal, and server attentiveness, and have positive early feedback from guests on certain remodel elements.”

Buettgen concluded, “Our entire team is committed to executing our long-term brand transformation strategies which should produce sustainable same-restaurant sales growth, improve long-term profitability, and maximize value for our shareholders.”

Fiscal 2016 Outlook

The Company is reaffirming its full-year Adjusted Net Income per diluted share guidance of $0.12 to $0.17, based on the following assumptions:

  • Same-Restaurant Sales – Fiscal 2016 same-restaurant sales to be in the range of flat to up 2%. Second quarter-to-date same-restaurant sales support this range.
  • Unit Development – A net reduction of 11-14 Company-owned Ruby Tuesday restaurants.
  • Restaurant Level Margins – Fiscal 2016 Restaurant Level Margins ranging from 17.0% to 17.5% of restaurant sales and operating revenue which compares to 16.9% in fiscal 2015.
  • Selling, General, and Administrative Expense – Fiscal 2016 SG&A ranging from $116 to $120 million, compared to $115.3 million in fiscal 2015.
  • Tax Rate – Adjusted Net Income is calculated using the statutory tax rate of 39.69%. This provides a more consistent tax rate to facilitate review and analysis of the Company’s financial performance. The Company is limited in the amount of tax credits that can be utilized each year based upon taxable income for that year and cannot recognize a full benefit of any year’s currently generated tax credits or tax credit carry-forwards due to the Company’s tax valuation allowance.
  • Capital Expenditures – Fiscal 2016 capital expenditures ranging from $34 to $38 million.

Reclassification of Amortization of Intangible Assets

Beginning in the first quarter of 2016, the Company reclassified its Amortization of intangible assets from “Other restaurant operating costs” to “Depreciation and amortization.” The Company believes this reclassification better aligns the Company with its peers and increased both current and prior period Restaurant-Level Margins by approximately 20 basis points. The schedule accompanying the condensed unaudited consolidated financial statements has been revised to reflect the reclassification of Amortization of intangible assets for the preceding eight quarters.

*Non-GAAP Reconciliations

The Company believes excluding certain items from its financial results provides investors with a clearer understanding of the Company’s operating performance and comparison to prior-period results. In addition, management uses these non-GAAP financial measures and ratios to assess the results of the Company’s operations.

We have included EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/ Income and Adjusted Net (Loss)/ Income per share to provide investors with supplemental measures of our operating performance. We believe these are important supplemental measures of operating performance because they eliminate items that have less bearing on our Company-wide operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on financial measures in accordance with United States Generally Accepted Accounting Principles (GAAP). We also believe that securities analysts, investors and other interested parties frequently use EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/ Income and Adjusted Net (Loss)/ Income per share in evaluating issuers. Because other companies in some cases calculate EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/ Income, or Adjusted Net (Loss)/ Income per share differently from the way we calculate such measures, these metrics may not be comparable to similarly titled measures reported by other companies. Additionally, supplemental non-GAAP financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

The use of these measures permits a comparative assessment of the Company's operating performance relative to its performance based on GAAP results, while isolating the effects of certain items that vary from period to period without correlation to core operating performance and certain items that vary widely among similar companies. However, the inclusion of these adjusted measures should not be construed as an indication that future results will be unaffected by unusual or infrequent items or that the items for which the adjustments have been made are necessarily unusual or infrequent.

The following table shows the reconciliation of Net (Loss)/ Income, the most directly comparable GAAP measure, to EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/ Income and Adjusted Net (Loss)/ Income per share, all of which are non-GAAP financial measures. The Company defines EBITDA as income before interest, taxes, and depreciation and amortization and Adjusted EBITDA as EBITDA, excluding certain non-cash and/or non-recurring expenses including, but not limited to, Closures and Impairments and Executive Transition. Adjusted Net (Loss)/ Income is defined as Net (Loss)/ Income, excluding certain non-cash and/or non-recurring expenses/(income) as detailed in Adjusted EBITDA, net of tax as well as adjustments related to Debt Prepayment Penalties, Deferred Financing Fees, and Income Tax (Benefit)/Provision Adjusted to the Statutory Rate. Adjusted Net (Loss)/ Income per share is defined as Adjusted Net (Loss)/ Income divided by diluted shares outstanding.

 
Non-GAAP Reconciliation Table
Reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/ Income, and Adjusted Net (Loss)/ Income Per Share
(Amounts in thousands except per share amounts)
(Unaudited)
 
    13 Weeks   13 Weeks
    Ended   Ended
    September 1,   September 2,
    2015   2014
         
Net (Loss)/Income   $ (4,194 )   $ 2,565  
         
Depreciation and Amortization     12,806       13,239  
Interest Expense, Net     6,000       5,422  
Benefit for Income Taxes     (1,023 )     (2,634 )
EBITDA   $ 13,589     $ 18,592  
Closures and Impairments(1)     2,712       1,482  
Executive Transition (2)     (1,274 )     -  
         
Adjusted EBITDA   $ 15,027     $ 20,074  
         
Net (Loss)/Income   $ (4,194 )   $ 2,565  
         
Closures and Impairments (net of tax) (1)(4)     1,636       894  
Executive Transition (net of tax) (2)(4)     (768 )     -  
Debt Prepayment Penalties & Deferred Financing Fees (net of tax) (3)(4)     654       -  
Income Tax (Benefit)/Provision Adjusted to Statutory Rate (5)     1,048       (2,607 )
Adjusted Net (Loss)/Income   $ (1,624 )   $ 852  
         
         
Net (Loss)/Income Per Share (6)   $ (0.07 )   $ 0.04  
         

Adjusted Net (Loss)/Income Per Share (6)

  $ (0.03 )   $ 0.01  
         
Basic Shares Outstanding     61,344       60,419  
         
Diluted Shares Outstanding     61,344       61,053  
         
         

(1) Includes impairments, lease reserves, and closing cost adjustments.

(2) On July 25, 2015, our then President Ruby Tuesday Concept and Chief Operations Officer left the Company. Accordingly, included within our share-based compensation expense for the current quarter is a forfeiture credit of $1.3 million in connection with the forfeiture of 333,000 unvested stock options and 137,000 unvested shares of restricted stock.

(3) Debt prepayment penalties and the write-off of deferred financing fees are classified within Interest expense and included in EBITDA calculation and therefore not a separate add-back for Adjusted EBITDA.

(4) Adjusted for income taxes based on a statutory tax rate of 39.69%.

(5) Represents the difference between the benefit for Taxes at the quarterly effective tax rate versus the statutory tax rate of 39.69%. Adjusted Net (Loss)/Income per share applies the statutory rate to pre-tax income and adjustments to income.

(6) Net Income and Adjusted Net Income per share figures are calculated based on diluted shares outstanding whereas Net Loss and Adjusted Net Loss per share figures are calculated based on basic shares outstanding.

 

About Ruby Tuesday

Ruby Tuesday, Inc. owns and franchises Ruby Tuesday and Lime Fresh brand restaurants. As of September 1, 2015, there were 734 Ruby Tuesday restaurants in 44 states, 12 countries, and Guam, and there were 27 Lime Fresh restaurants in six states and the District of Columbia. Of those restaurants, we owned and operated 656 Ruby Tuesday restaurants and franchised 78 Ruby Tuesday restaurants, comprised of 28 domestic and 50 international restaurants. We also owned and operated 19 Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. Our Company-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic, and Midwest of the United States, which we consider to be our core markets.

Ruby Tuesday, Inc. is traded on the New York Stock Exchange (Symbol: RT).

The Company will host a conference call, which will be a live web-cast, this afternoon at 5:00 p.m. Eastern Time. The call will be available live at the following website: http://www.rubytuesday.com

Special Note Regarding Forward-Looking Information

This press release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements represent our expectations or beliefs concerning future events, including one or more of the following: future financial performance (including our estimates of growth in same-restaurant sales, average unit volumes, operating margins, expenses, and other items), future capital expenditures, the effect of strategic initiatives (including statements relating to cost savings initiatives and the benefits of our marketing), the opening or closing of restaurants by us or our franchisees, sales of our real estate or purchases of new real estate, future borrowings and repayments of debt, availability of financing on terms attractive to the Company, compliance with financial covenants in our debt instruments, payment of dividends, stock and bond repurchases, restaurant acquisitions, and changes in senior management and in the Board of Directors. We caution the reader that a number of important factors and uncertainties could, individually or in the aggregate, cause our actual results to differ materially from those included in the forward-looking statements, including, without limitation, the risks and uncertainties described in the Risk Factors included in Part I, Item A of our Annual Report on Form 10-K for the year ended June 2, 2015.

 
 
 
Ruby Tuesday, Inc.
Number of Restaurants at end of period
                     
            September 1,       September 2,
            2015       2014
Ruby Tuesday:                    
Company-Owned           656       666
Domestic Franchised           28       31
International Franchised           50       52
Total           734       749
                     
Lime Fresh:                    
Company-Owned           19       20
Domestic Franchised           8       7
Total           27       27
                     
Total Restaurants:                    
Company-Owned           675       686
Domestic Franchised           36       38
International Franchised           50       52
System-wide total           761       776

 

 
 
 
 
 
Financial Results For the First Quarter of Fiscal Year 2016
(Amounts in thousands)
(Unaudited)
 
          September 1,        June 2,
CONDENSED BALANCE SHEETS         2015     2015
Assets               (as adjusted)
                 
Cash and Cash Equivalents         $ 56,938     $ 75,331
Accounts Receivable           6,001       5,287
Inventories           22,783       20,411
Income Tax Receivable           432       -
Prepaid Rent and Other Expenses           13,816       12,398
Assets Held for Sale           3,574       5,453
                 
Total Current Assets           103,544       118,880
                 
Property and Equipment, Net           746,667       752,174
Deferred Income Taxes, Net           1,794       -
Other Assets           51,876       54,398
                 
Total Assets         $ 903,881     $ 925,452
                 
Liabilities                

Current Portion of Long Term Debt, including Capital Leases

        $ 1,828     $ 10,078
Income Tax Payable           -       1,069
Deferred Income Taxes, Net           1,982       7
Other Current Liabilities           90,556       99,227
                 
Total Current Liabilities           94,366       110,381
                 
Long-Term Debt, including Capital Leases           230,557       231,017
Deferred Income Taxes, Net           -       1,442
Deferred Escalating Minimum Rents           51,713       50,768
Other Deferred Liabilities           66,185       66,261
                 
Total Liabilities           442,821       459,869
                 
Shareholders' Equity           461,060       465,583
                 
Total Liabilities and                
Shareholders' Equity         $ 903,881     $ 925,452

 

 
 
 
 
 
Financial Results For the First Quarter of Fiscal Year 2016
(Amounts in thousands except per share amounts)
(Unaudited)
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   
     

13 Weeks

     

13 Weeks

   
      Ended       Ended    
      September 1,   Percent   September 2,   Percent
      2015   of Revenue   2014   of Revenue
              (as adjusted)    
Revenue:                  
Restaurant sales and operating revenue     $ 277,907     99.4     $ 279,457     99.4  
Franchise revenue       1,573     0.6       1,725     0.6  
Total Revenue       279,480     100.0       281,182     100.0  
                   
Operating Costs and Expenses:                  
(as a percent of Restaurant sales and operating revenue)                  
Cost of goods sold       76,241     27.4       75,147     26.9  
Payroll and related costs       95,335     34.3       95,842     34.3  
Other restaurant operating costs (1)       62,207     22.4       59,218     21.2  
                   

Restaurant Level Margin (excludes franchise revenue) (1)

      44,124     15.9       49,250     17.6  
                   
Depreciation and amortization (1)       12,806     4.6       13,239     4.7  
(as a percent of Total revenue)                  
Selling, general and administrative, net       29,396     10.5       30,901     11.0  
Closures and impairments, net       2,712     1.0       1,482     0.5  
Total operating costs and expenses       278,697           275,829      
                   
Earnings From Operations       783     0.3       5,353     1.9  
                   
Interest expense, net       6,000     2.1       5,422     1.9  
                   
Loss before income taxes       (5,217 )   (1.9 )     (69 )   -  
Benefit for income taxes       (1,023 )   (0.4 )     (2,634 )   (0.9 )
                   
Net (Loss)/Income     $ (4,194 )   (1.5 )   $ 2,565     0.9  
                   
                   
Net (Loss)/Income Per Share:                  
Basic     $ (0.07 )       $ 0.04      
Diluted     $ (0.07 )       $ 0.04      
                   
Shares:                  
Basic       61,344           60,419      
Diluted       61,344           61,053      
                   

(1) Beginning in the first quarter of 2016, the Company reclassified its Amortization of intangible assets from Other restaurant operating costs to Depreciation and amortization. While the reclassification had no impact on net (loss)/income, it did impact the Company's Other restaurant operating costs and Restaurant-level margin. Reference the attached table in this presentation for the impact of this reclassification on the Company's prior period financial results.

 

 
 
 
 
 
Financial Results For the First Quarter of Fiscal Year 2016 and All Quarters of Fiscal Years 2015 and 2014
Reclassification of Amortization of Intangible Assets (1)
(Amounts in thousands except per share amounts)
(Unaudited)
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                               
                                                               
        13 Weeks           13 Weeks           13 Weeks           13 Weeks           13 Weeks      
        Ended           Ended           Ended           Ended           Ended      
        September 1,     Percent     June 2,     Percent     March 3,     Percent     December 2,     Percent     September 2,     Percent
        2015     of Revenue     2015     of Revenue     2015     of Revenue     2014     of Revenue     2014     of Revenue
                    (as adjusted)
Revenue:                                                              
Restaurant sales and operating revenue       $ 277,907       99.4       $ 295,087     99.4     $ 284,392       99.5       $ 261,206       99.4       $ 279,457       99.4  
Franchise revenue         1,573       0.6         1,725     0.6       1,521       0.5         1,453       0.6         1,725       0.6  
Total Revenue         279,480       100.0         296,812     100.0       285,913       100.0         262,659       100.0         281,182       100.0  
                                                               
Operating Costs and Expenses:                                                              
(as a percent of Restaurant sales and operating revenue)                                                              
Cost of goods sold         76,241       27.4         80,717     27.4       77,796       27.4         71,646       27.4         75,147       26.9  
Payroll and related costs         95,335       34.3         96,775     32.8       96,680       34.0         93,964       36.0         95,842       34.3  

Other restaurant operating costs (1)

        62,207       22.4         62,403     21.1       60,972       21.4         59,516       22.8         59,218       21.2  
                                                               
Restaurant Level Margin (1)         44,124       15.9         55,192     18.7       48,944       17.2         36,080       13.8         49,250       17.6  
(excludes franchise revenue)                                                              
Depreciation and amortization (1)         12,806       4.6         13,072     4.4       12,961       4.6         13,119       5.0         13,239       4.7  
(as a percent of Total revenue)                                                              
Selling, general and administrative, net         29,396       10.5         28,186     9.5       28,948       10.1         27,292       10.4         30,901       11.0  
Closures and impairments, net         2,712       1.0         3,994     1.3       3,991       1.4         1,075       0.4         1,482       0.5  
Trademark impairments         -       -         -     -       -       -         -       -         -       -  
Total operating costs and expenses         278,697               285,147             281,348               266,612               275,829        
                                                               
Earnings/(Loss) From Operations         783       0.3         11,665     3.9       4,565       1.6         (3,953 )     (1.5 )       5,353       1.9  
                                                               
Interest expense, net         6,000       2.1         5,952     2.0       5,446       1.9         5,915       2.3         5,422       1.9  
                                                               
Loss on extinguishment of debt         -       -         -     -       -       -         -       -         -       -  
                                                               
(Loss)/income from continuing operations before income taxes         (5,217 )     (1.9 )       5,713     1.9       (881 )     (0.3 )       (9,868 )     (3.8 )       (69 )     -  
(Benefit)/provision for income taxes from continuing operations         (1,023 )     (0.4 )       1,430     0.5       (112 )     -         (595 )     (0.2 )       (2,634 )     (0.9 )
Net (Loss)/income from Continuing Operations         (4,194 )     (1.5 )       4,283     1.4       (769 )     (0.3 )       (9,273 )     (3.5 )       2,565       0.9  
                                                               
Income/(Loss) from discontinued operations, net of tax         -       -         -     -       -       -         -       -         -       -  
                                                               
Net (Loss)/Income       $ (4,194 )     (1.5 )     $ 4,283     1.4     $ (769 )     (0.3 )     $ (9,273 )     (3.5 )     $ 2,565       0.9  
                                                         
                                                               
Basic (Loss)/Income Per Share:                                                        
(Loss)/income from continuing operations       $ (0.07 )           $ 0.07           $ (0.01 )           $ (0.15 )           $ 0.04        
Income from discontinued operations         -               -             -               -               -        
Basic Net (Loss)/Income Per Share       $ (0.07 )           $ 0.07           $ (0.01 )           $ (0.15 )           $ 0.04        
                                                               
Diluted (Loss)/Income Per Share:                                                              
(Loss)/income from continuing operations       $ (0.07 )           $ 0.07           $ (0.01 )           $ (0.15 )           $ 0.04        
Income from discontinued operations         -               -             -               -               -        
Diluted Net (Loss)/Income Per Share       $ (0.07 )           $ 0.07           $ (0.01 )           $ (0.15 )           $ 0.04        
                                                               
Shares:                                                              
Basic         61,344               60,725             60,643               60,534               60,419        
Diluted         61,344               61,709             60,643               60,534               61,053        
                                                               
(1) Beginning in the first quarter of 2016, the Company reclassified its Amortization of Intangible Assets from Other restaurant operating costs to Depreciation and Amortization. While the reclassification had no impact on net (loss)/income, it did impact the Company's Other restaurant operating costs and Restaurant-level margin as follows:
                                                               
Other restaurant operating costs as previously stated     $ 62,928     21.3     $ 61,528       21.6       $ 60,097       23.0       $ 59,799       21.4  
Less: Amortization of Intangible Assets       525     0.2       556       0.2         581       0.2         581       0.2  
Other restaurant operating costs as reclassified     $ 62,403     21.1     $ 60,972       21.4       $ 59,516       22.8       $ 59,218       21.2  
                                                               
Restaurant-Level Margin, as previously stated     $ 54,667     18.5     $ 48,388       17.0       $ 35,499       13.6       $ 48,669       17.4  
add back: Amortization of Intangible Assets       525     0.2       556       0.2         581       0.2         581       0.2  
Restaurant-Level Margin as reclassified     $ 55,192     18.7     $ 48,944       17.2       $ 36,080       13.8       $ 49,250       17.6  

 

 
 
 
 
 
Financial Results For the First Quarter of Fiscal Year 2016 and All Quarters of Fiscal Years 2015 and 2014
Reclassification of Amortization of Intangible Assets (1)
(Amounts in thousands except per share amounts)
(Unaudited)
                                                   
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
                                                   
                                                   
        13 Weeks           13 Weeks           13 Weeks           13 Weeks      
        Ended           Ended           Ended           Ended      
        June 3,     Percent     March 4,     Percent     December 3,     Percent     September 3,     Percent
        2014     of Revenue     2014     of Revenue     2013     of Revenue     2013     of Revenue
        (as adjusted)
Revenue:                                                  
Restaurant sales and operating revenue       $ 305,648       99.5       $ 293,964       99.5       $ 274,719       99.5       $ 288,092       99.5  
Franchise revenue         1,663       0.5         1,588       0.5         1,490       0.5         1,582       0.5  
Total Revenue         307,311       100.0         295,552       100.0         276,209       100.0         289,674       100.0  
                                                   
Operating Costs and Expenses:                                                  
(as a percent of Restaurant sales and operating revenue)                                          
Cost of goods sold         82,934       27.1         80,980       27.5         77,669       28.3         79,938       27.7  
Payroll and related costs         102,778       33.6         101,351       34.5         97,517       35.5         102,733       35.7  
Other restaurant operating costs (1)         62,877       20.6         63,576       21.6         64,606       23.5         66,869       23.2  
                                                   
Restaurant Level Margin (1)         57,059       18.7         48,057       16.3         34,927       12.7         38,552       13.4  
(excludes franchise revenue)                                                  
Depreciation and amortization (1)         13,963       4.6         13,912       4.7         14,598       5.3         14,874       5.2  
(as a percent of Total revenue)                                                  
Selling, general and administrative, net         29,765       9.7         33,340       11.3         37,031       13.4         37,015       12.8  
Closures and impairments, net         6,884       2.2         3,771       1.3         14,143       5.1         8,033       2.8  
Trademark impairments         -       -         855       0.3         -       -         -       -  
Total operating costs and expenses         299,201               297,785               305,564               309,462        
                                                   
Earnings/(Loss) From Operations         8,110       2.6         (2,233 )     (0.8 )       (29,355 )     (10.6 )       (19,788 )     (6.8 )
                                                   
Interest expense, net         5,605       1.8         5,967       2.0         6,620       2.4         6,753       2.3  
                                                   
Loss on extinguishment of debt         181       0.1         -       -         672       0.2         511       0.2  
                                                   
(Loss)/income from continuing operations before income taxes         2,324       0.8         (8,200 )     (2.8 )       (36,647 )     (13.3 )       (27,052 )     (9.3 )
(Benefit)/provision for income taxes from continuing operations         3,205       1.0         (807 )     (0.3 )       (1,910 )     (0.7 )       (5,153 )     (1.8 )
Net (Loss)/income from Continuing Operations         (881 )     (0.3 )       (7,393 )     (2.5 )       (34,737 )     (12.6 )       (21,899 )     (7.6 )
                                                   
Income/(Loss) from discontinued operations, net of tax         467       0.2         86       -         354       0.1         (343 )     (0.1 )
                                                   
Net (Loss)/Income       $ (414 )     (0.1 )     $ (7,307 )     (2.5 )     $ (34,383 )     (12.4 )     $ (22,242 )     (7.7 )
                                                   
                                                   
Basic (Loss)/Income Per Share:                                                  
(Loss)/income from continuing operations       $ (0.01 )           $ (0.12 )           $ (0.58 )           $ (0.36 )      
Income from discontinued operations         -               -               0.01               (0.01 )      
Basic Net (Loss)/Income Per Share       $ (0.01 )           $ (0.12 )           $ (0.57 )           $ (0.37 )      
                                                   
Diluted (Loss)/Income Per Share:                                                  
(Loss)/income from continuing operations       $ (0.01 )           $ (0.12 )           $ (0.58 )           $ (0.36 )      
Income from discontinued operations         -               -               0.01               (0.01 )      
Diluted Net (Loss)/Income Per Share       $ (0.01 )           $ (0.12 )           $ (0.57 )           $ (0.37 )      
                                                   
Shares:                                                  
Basic         60,353               60,351               60,196               60,026        
Diluted         60,353               60,351               60,196               60,026        
                                                   
(1) Beginning in the first quarter of 2016, the Company reclassified its Amortization of Intangible Assets from Other restaurant operating costs to Depreciation and Amortization. While the reclassification had no impact on net (loss)/income, it did impact the Company's Other restaurant operating costs and Restaurant-level margin as follows:
                                                   
Other restaurant operating costs as previously stated       $ 63,463       20.8       $ 64,161       21.8       $ 65,289       23.7       $ 67,534       23.4  
Less: Amortization of Intangible Assets         586       0.2         585       0.2         683       0.2         665       0.2  
Other restaurant operating costs as reclassified       $ 62,877       20.6       $ 63,576       21.6       $ 64,606       23.5       $ 66,869       23.2  
                                                   
Restaurant-Level Margin, as previously stated       $ 56,473       18.5       $ 47,472       16.1       $ 34,244       12.5       $ 37,887       13.2  
add back: Amortization of Intangible Assets         586       0.2         585       0.2         683       0.2         665       0.2  
Restaurant-Level Margin as reclassified       $ 57,059       18.7       $ 48,057       16.3       $ 34,927       12.7       $ 38,552       13.4  
                                                                           
                                                                           
                                                                           
                                                                           

SOURCE Ruby Tuesday, Inc.

Contact:

Jill Golder
Ruby Tuesday, Inc.
865-379-5700
EVP & Chief Financial Officer

###

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