RUTH’S HOSPITALITY GROUP, INC. REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS
- Winter Park, FL
- Ruth's Hospitality Group
– Total Revenues Grow 8.8% to $80.3 Million –
– Income from Continuing Operations Increased 20.0% to $2.6 Million –
– Quarterly Earnings Per Share from Continuing Operations Up 23.4% to $0.08 –
BUSINESS WIRE— Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) today reported unaudited financial results for its third quarter ended September 27, 2015 and announced a quarterly cash dividend of $0.06 per share to be paid in December 2015.
Net income was $2.6 million, or $0.08 per diluted share, in the third quarter of 2015 compared to a net loss of $7.3 million, or a loss of $0.21 per diluted share, in the third quarter of 2014.
Michael P. O’Donnell, Chairman, President and Chief Executive Officer of Ruth’s Hospitality Group, Inc., noted, “We are pleased to report another quarter of strong operating results. Revenue growth of 8.8% combined with favorable food cost trends and excellent operational execution drove another quarter of solid earnings growth. The strength and consistency of our business has allowed us to reinvest in our core operations and support organic growth, while returning capital to shareholders in a balanced and thoughtful manner.”
O’Donnell added, “We are very excited about the grand opening of our second restaurant location in Dallas next week. This beautiful restaurant showcases the Ruth’s 2.0 modern design and features an expanded bar, elegant dining room, and enhanced private dining spaces.”
Total revenues in the third quarter of 2015 were $80.3 million, an increase of 8.8% compared to $73.8 million in the third quarter of 2014.
Operating income in the third quarter of 2015 increased 4.9% to $4.2 million, compared to $4.0 million in the third quarter of 2014. As a percentage of total revenues, operating margin decreased 19 basis points to 5.2% year-over-year.
During the third quarter of 2015, the Company repurchased 401,689 shares of common stock for approximately $6.4 million under the Company’s previously announced $50 million share repurchase program. Since the beginning of 2014, the Company has repurchased 2.0 million shares for approximately $27.1 million. As of the end of the third quarter of 2015, the Company had $33.2 million remaining under its current authorization.
At the end of the third quarter of 2015, the Company had $5 million in debt outstanding under its senior credit facility, with approximately $90.8 million of borrowings available under that facility, net of outstanding letters of credit of approximately $4.2 million.
Subsequent to the end of the third quarter of 2015, the Company’s Board of Directors, as part of the Company’s focus on long-term shareholder returns, approved the payment of a quarterly cash dividend to shareholders of $0.06 per share. This dividend will be paid on December 3, 2015 to shareholders of record as of the close of business on November 19, 2015. This dividend represents a 20% increase from the quarterly cash dividend paid to shareholders in December 2014.
The Company expects to open its second Dallas, TX restaurant on November 9, 2015. As previously announced, the Company has signed a lease to open a restaurant in Albuquerque, NM, which is currently expected to open in the first half of 2016. Additionally, the Company has signed leases to open restaurants in Cleveland, OH and El Paso, TX in the second half of 2016. Ruth’s Chris Steak House franchisees are currently projected to open the third restaurant in San Antonio, TX on November 16, 2015, and a new location in Jakarta, Indonesia in the first quarter of 2016. Additionally, our franchise partners in both Philadelphia and Mississauga, Canada will relocate their existing restaurants in the second half of 2016.
Based on current information, Ruth’s Hospitality Group, Inc. is updating its full year 2015 outlook as follows:
The foregoing statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer you to our recent filings with the Securities and Exchange Commission for more detailed discussions of the risks that could impact our financial outlook and our future operating results and financial condition.
The Company will host a conference call to discuss third quarter 2015 financial results today at 8:30 AM Eastern Time. Hosting the call will be Michael P. O’Donnell, Chairman, President and Chief Executive Officer, and Arne G. Haak, Executive Vice President and Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 719-457-2648. A replay will be available one hour after the call and can be accessed by dialing 858-384-5517; the password is 752975. The replay will be available until November 6, 2015. The call will also be webcast live from the Company’s website at http://www.rhgi.com under the investor relations section.
Ruth’s Hospitality Group, Inc., headquartered in Winter Park, Florida, is the largest fine dining steakhouse company in the U.S. as measured by the total number of Company-owned and franchisee-owned restaurants, with over 145 Ruth’s Chris Steak House locations worldwide specializing in USDA Prime grade steaks served in Ruth’s Chris’ signature fashion – “sizzling.”
For information about our restaurants, to make reservations, or to purchase gift cards, please visit http://www.RuthsChris.com For m.ore information about Ruth’s Hospitality Group, Inc., please visit http://www.rhgi.com.
This press release contains “forward-looking statements” that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties. These forward-looking statements include all statements other than those made solely with respect to historical facts and include, but are not limited to, statements regarding the Company’s financial outlook, objectives, goals and plans, including with respect to new restaurant openings. Forward-looking statements frequently are identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases. Actual results could differ materially from those projected, implied or anticipated by these forward-looking statements. Some of the factors that could cause actual results to differ include: reductions in the availability of, or increases in the cost of, USDA Prime grade beef, fish and other food items; changes in economic conditions and general trends; the loss of key management personnel; the effect of market volatility on the Company’s stock price; health concerns about beef or other food products; the effect of competition in the restaurant industry; changes in consumer preferences or discretionary spending; labor shortages or increases in labor costs; the impact of federal, state or local government regulations relating to Company employees, the sale or preparation of food, the sale of alcoholic beverages and the opening of new restaurants; harmful actions taken by the Company’s franchisees; the Company’s ability to protect its name and logo and other proprietary information; the impact of litigation; the restrictions imposed by the Company’s Amended and Restated Credit Agreement; changes in, or the discontinuation of, the Company’s share repurchase program or dividend payments; and the risk factors or uncertainties identified in the reports the Company files with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 28, 2014 and subsequently filed Quarterly Reports on Form 10-Q, all of which are available on the Securities and Exchange Commission’s website at http://www.sec.gov All f.orward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release after the date hereof, whether as a result of new information, future events or otherwise.