Ruby Tuesday, Inc. Reports Third Quarter Earnings Per Share Growth of 33% and Record Same-Store Sales Growth of 6.5%

Apr 10, 2001, 01:00 ET from Ruby Tuesday, Inc.

    MARYVILLE, Tenn., April 10 /PRNewswire/ -- Ruby Tuesday, Inc. (NYSE:   RI),
 one of America's leading companies in the fast-growing casual dining segment
 of the restaurant industry, today reported results for its third quarter ended
 March 4, 2001.  Earnings per share were $0.28, up 33% from $0.21 a year ago.
 This marks the twelfth consecutive quarter of earnings per share growth in
 excess of 20%.  The growth was largely attributable to same-store sales growth
 of 6.5% and an average unit volume increase of 7.5% for the quarter at
 Company-owned Ruby Tuesday(R) restaurants.  Net income of $18.2 million for
 the quarter was also up 33% from $13.7 million a year ago.  Pre-tax margin of
 14.8% was 460 basis points higher than the prior year.
     Sandy Beall, the Company's Chairman and CEO, commented, "In addition to
 completing one of the best quarters ever, Ruby Tuesday, Inc. has now completed
 five years of outstanding performance-both operationally and financially.  The
 considerable investments in our teams and our systems have paved the way for
 these results.  Programs implemented during the last five years, such as the
 franchise partner program, the managing partner program, and our on-site
 training facilities, have been and will continue to be major contributing
 factors to our success.  Each of these is part of our overall strategy for
 minimizing risk while maximizing results and, in addition to maintaining a
 strong balance sheet, is instrumental in sustaining our long-term success."
 
                      Outlook for Remainder of Fiscal 2001
     Based on current business trends and its third quarter results, the
 Company's earnings per share growth goal for fiscal 2001 (excluding the
 $0.15 per share charge recorded in fiscal 2000 in conjunction with the
 previously completed sale of the American Cafe and Tia's Tex-Mex restaurants)
 is approximately 25%.  The Company is comfortable with the current consensus
 of analysts' estimates for fourth quarter earnings per share of $0.26.  The
 Company's goal for same-store sales growth for its fourth quarter of fiscal
 2001 is approximately 3.0%.
 
                            Outlook for Fiscal 2002
     Based on current business trends, the Company's goal for fiscal year 2002
 is 20% earnings per share growth and 2-3% same-store sales growth.
 
     Third Quarter Highlights:
 
     * Earnings per share increased 33.3% to $0.28 from $0.21.  Earnings per
       share have grown in excess of 20% in each of the last twelve quarters.
     * Net income increased 32.8% to $18,237,000 from $13,730,000.
     * Average unit volumes increased 7.5% and same-store sales increased 6.5%
       at Company-owned Ruby Tuesday restaurants.
     * System-wide Ruby Tuesday revenue increased 18.5% to $267,715,000 from
       $225,997,000.
     * Seven Company-owned Ruby Tuesday restaurants were opened.
     * One Company-owned Ruby Tuesday restaurant was closed due to lease
       expiration.
     * Five franchise units were opened and two were closed due to lease
       expirations.
 
 
     Year-to-Date Highlights:
 
     * Earnings per share increased 30.0% to $0.65 from $0.50.
     * Net income increased 29.7% to $42,108,000 from $32,462,000.
     * System-wide Ruby Tuesday revenue increased 16.7% to $745,759,000 from
       $639,119,000.
     * Same-store sales increased 3.8% at Company-owned Ruby Tuesday
       restaurants.
     * Pre-tax profit margin increased to 11.1%.
     * 34 Company-owned Ruby Tuesday restaurants were opened.
     * 14 Company-owned Ruby Tuesday restaurants were closed (six of which were
       sold to a new franchise partner).
     * 24 franchise units were opened (six of which were former Company-owned
       Ruby Tuesday restaurants sold to a new franchise partner) and three were
       closed.
     * The previously announced sale of the American Cafe and Tia's Tex-Mex
       restaurants was completed on November 20, 2000.
 
     As of March 4, 2001, Ruby Tuesday, Inc. owned and operated 356 Ruby
 Tuesday restaurants located in 26 states.  Franchised operations included 157
 domestic units and 10 international units.  Ruby Tuesday, Inc. is traded on
 the New York Stock Exchange (NYSE:   RI).
 
     For more information, contact:          Phone:   865-379-5700
     Price Cooper
     Director, Investor Relations and Planning
 
     The Company will host a conference call which will be a live web-cast this
 afternoon at 3:00 Eastern Time.   The call will be available live at the
 following web-sites:
 
     http://www.videonewswire.com/RUBY/041001
     http://www.rubytuesday.com/company/investorrelations.htm
 
     The call will be archived on both sites through the close of business on
 April 17, 2001.
 
     Special Note Regarding Forward-Looking Information
     This press release contains various "forward-looking statements" which
 represent the Company's expectations or beliefs concerning future events,
 including the following:  future financial performance and unit growth (both
 Company-owned and franchised), future capital expenditures, future borrowings
 and repayment of debt, and payment of dividends. The Company cautions that a
 number of important factors could, individually or in the aggregate, cause
 actual results to differ materially from those included in the forward-looking
 statements, including, without limitation, the following:  consumer spending
 trends and habits; mall-traffic trends; increased competition in the casual
 dining restaurant market; weather conditions in the regions in which Company-
 owned and franchised restaurants are operated; consumers' acceptance of the
 Company's development prototypes; laws and regulations affecting labor and
 employee benefit costs; costs and availability of food and beverage inventory;
 the Company's ability to attract qualified managers and franchisees; changes
 in the availability of capital; and general economic conditions.
 
     RUBY TUESDAY, INC.
 
     Financial Results For the Third Quarter of Fiscal Year 2001 (unaudited)
     (Amounts in thousands except per share amounts)
 
 
 
                                13 Weeks            13 Weeks
                                  Ended               Ended
                                 March 4,  Percent   March 5, Percent Percent
                                   2001    of Sales    2000  of Sales  Change
 
     System-Wide Ruby Tuesday Sales:
     Company-owned Ruby Tuesday
      revenue                     $187,920            $178,891
     Franchised Ruby Tuesday
      revenue                       79,795              47,106
         Total system-wide Ruby
          Tuesday sales           $267,715            $225,997         18.5
 
     Revenues:
        Ruby Tuesday              $187,920    98.1    $178,891   85.5
        Other concepts                  --     0.0      28,269   13.5
           Company restaurant
            revenues               187,920    98.1     207,160   99.0  (9.3)
        Franchise income             3,560     1.9       2,062    1.0
           Total operating
            revenues               191,480   100.0     209,222  100.0  (8.5)
 
     Operating Costs and Expenses:
        (as a percent of Company
         restaurant revenues)
            Cost of merchandise     51,606    27.5      56,177   27.1
            Payroll and related
             costs                  58,118    30.9      64,715   31.2
            Other restaurant
             operating costs        33,189    17.7      41,978   20.3
            Depreciation and
             amortization            7,500     4.0      10,553    5.1
        (as a percent of Total
         operating revenues)
            Selling, general and
             administrative         14,118     7.4      13,779    6.6
     Total operating costs and
      expenses                     164,531             187,202
 
     Earnings before Interest and
      Taxes
       (EBIT                        26,949    14.1      22,020   10.5  22.4
 
        Interest (income)/expense,
         net                        (1,460)   (0.8)        603    0.3
 
        Provision for income taxes  10,172     5.3       7,687    3.7
 
     Net Income                    $18,237     9.5     $13,730    6.6  32.8
 
     Earnings Per Share:
     Basic                           $0.29               $0.21         38.1
     Diluted                         $0.28               $0.21         33.3
 
     Shares:
     Basic                          63,385              62,100
     Diluted                        65,518              63,898
 
 
     RUBY TUESDAY, INC.
 
     Financial Results For the Third Quarter of Fiscal Year 2001 (unaudited)
     (Amounts in thousands except per share amounts)
 
 
                                39 Weeks            39 Weeks
                                  Ended               Ended
                                 March 4,  Percent   March 5,  Percent  Percent
                                   2001   of Sales     2000   of Sales  Change
 
     System-Wide Ruby Tuesday
      Sales:
     Company-owned Ruby Tuesday
      revenue                     $534,029            $512,365
     Franchised Ruby Tuesday
      revenue                      211,730             126,754
         Total system-wide Ruby
          Tuesday sales           $745,759            $639,119          16.7
 
     Revenues:
        Ruby Tuesday              $534,029     90.0   $512,365   85.7
        Other concepts              49,978      8.5     80,379   13.4
           Company restaurant
            revenues               584,007     98.5    592,744   99.1   (1.5)
        Franchise income             9,185      1.5      5,542    0.9
           Total operating
            revenues               593,192    100.0    598,286  100.0   (0.9)
 
     Operating Costs and Expenses:
        (as a percent of Company
         restaurant revenues)
            Cost of merchandise    159,367     27.3    161,558   27.3
            Payroll and related
             costs                 186,561     31.9    188,677   31.8
            Other restaurant
             operating costs       113,367     19.4    122,612   20.7
            Depreciation and
             amortization           26,439      4.5     31,245    5.3
        (as a percent of Total
         operating revenues)
            Selling, general and
             administrative         43,753      7.4     41,943    7.0
     Total operating costs and
      expenses                     529,487             546,035
 
     Earnings before Interest and
      Taxes
       (EBIT                        63,705     10.7     52,251    8.7    21.9
 
        Interest (income)/expense,
         net                        (1,886)    (0.3)     1,522    0.3
 
        Provision for income taxes  23,483      4.0     18,267    3.1
 
     Net Income                    $42,108      7.1    $32,462    5.4    29.7
 
     Earnings Per Share:
     Basic                           $0.67               $0.51           31.4
     Diluted                         $0.65               $0.50           30.0
 
     Shares:
     Basic                          62,528              62,802
     Diluted                        64,753              64,876
 
 
 
     RUBY TUESDAY, INC.
 
     Financial Results For the Third Quarter
     of Fiscal Year 2001 (unaudited)
     (Amounts in thousands except per share amounts)
 
                                                    March 4,          June 4,
     CONDENSED BALANCE SHEETS                         2001              2000
     Assets
      Cash and Short-Term Investments               $11,354           $10,154
      Accounts and Notes Receivable                   6,625             6,880
      Inventories                                     8,341             9,378
      Prepaid Income Taxes                            7,793               312
      Assets Held for Disposal                        3,853            59,057
      Other Current Assets                            6,226             8,674
 
        Total Current Assets                         44,192            94,455
 
      Property and Equipment, Net                   295,303           281,865
      Costs in Excess of Net Assets
       Acquired                                       7,941             8,229
      Notes Receivable, Net                          54,278            23,126
      Deferred Income Taxes                              --             5,355
      Other Assets                                   29,659            26,182
 
        Total Assets                               $431,373          $439,212
 
     Liabilities
      Current Liabilities                           $76,211          $151,796
      Long-Term Debt                                 15,527               636
      Deferred Income Taxes                           2,446                --
      Other Deferred Liabilities                     56,717            56,956
 
        Total Liabilities                           150,901           209,388
 
     Shareholders' Equity                           280,472           229,824
 
        Total Liabilities and
         Shareholders' Equity                      $431,373          $439,212
 
 

SOURCE Ruby Tuesday, Inc.
    MARYVILLE, Tenn., April 10 /PRNewswire/ -- Ruby Tuesday, Inc. (NYSE:   RI),
 one of America's leading companies in the fast-growing casual dining segment
 of the restaurant industry, today reported results for its third quarter ended
 March 4, 2001.  Earnings per share were $0.28, up 33% from $0.21 a year ago.
 This marks the twelfth consecutive quarter of earnings per share growth in
 excess of 20%.  The growth was largely attributable to same-store sales growth
 of 6.5% and an average unit volume increase of 7.5% for the quarter at
 Company-owned Ruby Tuesday(R) restaurants.  Net income of $18.2 million for
 the quarter was also up 33% from $13.7 million a year ago.  Pre-tax margin of
 14.8% was 460 basis points higher than the prior year.
     Sandy Beall, the Company's Chairman and CEO, commented, "In addition to
 completing one of the best quarters ever, Ruby Tuesday, Inc. has now completed
 five years of outstanding performance-both operationally and financially.  The
 considerable investments in our teams and our systems have paved the way for
 these results.  Programs implemented during the last five years, such as the
 franchise partner program, the managing partner program, and our on-site
 training facilities, have been and will continue to be major contributing
 factors to our success.  Each of these is part of our overall strategy for
 minimizing risk while maximizing results and, in addition to maintaining a
 strong balance sheet, is instrumental in sustaining our long-term success."
 
                      Outlook for Remainder of Fiscal 2001
     Based on current business trends and its third quarter results, the
 Company's earnings per share growth goal for fiscal 2001 (excluding the
 $0.15 per share charge recorded in fiscal 2000 in conjunction with the
 previously completed sale of the American Cafe and Tia's Tex-Mex restaurants)
 is approximately 25%.  The Company is comfortable with the current consensus
 of analysts' estimates for fourth quarter earnings per share of $0.26.  The
 Company's goal for same-store sales growth for its fourth quarter of fiscal
 2001 is approximately 3.0%.
 
                            Outlook for Fiscal 2002
     Based on current business trends, the Company's goal for fiscal year 2002
 is 20% earnings per share growth and 2-3% same-store sales growth.
 
     Third Quarter Highlights:
 
     * Earnings per share increased 33.3% to $0.28 from $0.21.  Earnings per
       share have grown in excess of 20% in each of the last twelve quarters.
     * Net income increased 32.8% to $18,237,000 from $13,730,000.
     * Average unit volumes increased 7.5% and same-store sales increased 6.5%
       at Company-owned Ruby Tuesday restaurants.
     * System-wide Ruby Tuesday revenue increased 18.5% to $267,715,000 from
       $225,997,000.
     * Seven Company-owned Ruby Tuesday restaurants were opened.
     * One Company-owned Ruby Tuesday restaurant was closed due to lease
       expiration.
     * Five franchise units were opened and two were closed due to lease
       expirations.
 
 
     Year-to-Date Highlights:
 
     * Earnings per share increased 30.0% to $0.65 from $0.50.
     * Net income increased 29.7% to $42,108,000 from $32,462,000.
     * System-wide Ruby Tuesday revenue increased 16.7% to $745,759,000 from
       $639,119,000.
     * Same-store sales increased 3.8% at Company-owned Ruby Tuesday
       restaurants.
     * Pre-tax profit margin increased to 11.1%.
     * 34 Company-owned Ruby Tuesday restaurants were opened.
     * 14 Company-owned Ruby Tuesday restaurants were closed (six of which were
       sold to a new franchise partner).
     * 24 franchise units were opened (six of which were former Company-owned
       Ruby Tuesday restaurants sold to a new franchise partner) and three were
       closed.
     * The previously announced sale of the American Cafe and Tia's Tex-Mex
       restaurants was completed on November 20, 2000.
 
     As of March 4, 2001, Ruby Tuesday, Inc. owned and operated 356 Ruby
 Tuesday restaurants located in 26 states.  Franchised operations included 157
 domestic units and 10 international units.  Ruby Tuesday, Inc. is traded on
 the New York Stock Exchange (NYSE:   RI).
 
     For more information, contact:          Phone:   865-379-5700
     Price Cooper
     Director, Investor Relations and Planning
 
     The Company will host a conference call which will be a live web-cast this
 afternoon at 3:00 Eastern Time.   The call will be available live at the
 following web-sites:
 
     http://www.videonewswire.com/RUBY/041001
     http://www.rubytuesday.com/company/investorrelations.htm
 
     The call will be archived on both sites through the close of business on
 April 17, 2001.
 
     Special Note Regarding Forward-Looking Information
     This press release contains various "forward-looking statements" which
 represent the Company's expectations or beliefs concerning future events,
 including the following:  future financial performance and unit growth (both
 Company-owned and franchised), future capital expenditures, future borrowings
 and repayment of debt, and payment of dividends. The Company cautions that a
 number of important factors could, individually or in the aggregate, cause
 actual results to differ materially from those included in the forward-looking
 statements, including, without limitation, the following:  consumer spending
 trends and habits; mall-traffic trends; increased competition in the casual
 dining restaurant market; weather conditions in the regions in which Company-
 owned and franchised restaurants are operated; consumers' acceptance of the
 Company's development prototypes; laws and regulations affecting labor and
 employee benefit costs; costs and availability of food and beverage inventory;
 the Company's ability to attract qualified managers and franchisees; changes
 in the availability of capital; and general economic conditions.
 
     RUBY TUESDAY, INC.
 
     Financial Results For the Third Quarter of Fiscal Year 2001 (unaudited)
     (Amounts in thousands except per share amounts)
 
 
 
                                13 Weeks            13 Weeks
                                  Ended               Ended
                                 March 4,  Percent   March 5, Percent Percent
                                   2001    of Sales    2000  of Sales  Change
 
     System-Wide Ruby Tuesday Sales:
     Company-owned Ruby Tuesday
      revenue                     $187,920            $178,891
     Franchised Ruby Tuesday
      revenue                       79,795              47,106
         Total system-wide Ruby
          Tuesday sales           $267,715            $225,997         18.5
 
     Revenues:
        Ruby Tuesday              $187,920    98.1    $178,891   85.5
        Other concepts                  --     0.0      28,269   13.5
           Company restaurant
            revenues               187,920    98.1     207,160   99.0  (9.3)
        Franchise income             3,560     1.9       2,062    1.0
           Total operating
            revenues               191,480   100.0     209,222  100.0  (8.5)
 
     Operating Costs and Expenses:
        (as a percent of Company
         restaurant revenues)
            Cost of merchandise     51,606    27.5      56,177   27.1
            Payroll and related
             costs                  58,118    30.9      64,715   31.2
            Other restaurant
             operating costs        33,189    17.7      41,978   20.3
            Depreciation and
             amortization            7,500     4.0      10,553    5.1
        (as a percent of Total
         operating revenues)
            Selling, general and
             administrative         14,118     7.4      13,779    6.6
     Total operating costs and
      expenses                     164,531             187,202
 
     Earnings before Interest and
      Taxes
       (EBIT                        26,949    14.1      22,020   10.5  22.4
 
        Interest (income)/expense,
         net                        (1,460)   (0.8)        603    0.3
 
        Provision for income taxes  10,172     5.3       7,687    3.7
 
     Net Income                    $18,237     9.5     $13,730    6.6  32.8
 
     Earnings Per Share:
     Basic                           $0.29               $0.21         38.1
     Diluted                         $0.28               $0.21         33.3
 
     Shares:
     Basic                          63,385              62,100
     Diluted                        65,518              63,898
 
 
     RUBY TUESDAY, INC.
 
     Financial Results For the Third Quarter of Fiscal Year 2001 (unaudited)
     (Amounts in thousands except per share amounts)
 
 
                                39 Weeks            39 Weeks
                                  Ended               Ended
                                 March 4,  Percent   March 5,  Percent  Percent
                                   2001   of Sales     2000   of Sales  Change
 
     System-Wide Ruby Tuesday
      Sales:
     Company-owned Ruby Tuesday
      revenue                     $534,029            $512,365
     Franchised Ruby Tuesday
      revenue                      211,730             126,754
         Total system-wide Ruby
          Tuesday sales           $745,759            $639,119          16.7
 
     Revenues:
        Ruby Tuesday              $534,029     90.0   $512,365   85.7
        Other concepts              49,978      8.5     80,379   13.4
           Company restaurant
            revenues               584,007     98.5    592,744   99.1   (1.5)
        Franchise income             9,185      1.5      5,542    0.9
           Total operating
            revenues               593,192    100.0    598,286  100.0   (0.9)
 
     Operating Costs and Expenses:
        (as a percent of Company
         restaurant revenues)
            Cost of merchandise    159,367     27.3    161,558   27.3
            Payroll and related
             costs                 186,561     31.9    188,677   31.8
            Other restaurant
             operating costs       113,367     19.4    122,612   20.7
            Depreciation and
             amortization           26,439      4.5     31,245    5.3
        (as a percent of Total
         operating revenues)
            Selling, general and
             administrative         43,753      7.4     41,943    7.0
     Total operating costs and
      expenses                     529,487             546,035
 
     Earnings before Interest and
      Taxes
       (EBIT                        63,705     10.7     52,251    8.7    21.9
 
        Interest (income)/expense,
         net                        (1,886)    (0.3)     1,522    0.3
 
        Provision for income taxes  23,483      4.0     18,267    3.1
 
     Net Income                    $42,108      7.1    $32,462    5.4    29.7
 
     Earnings Per Share:
     Basic                           $0.67               $0.51           31.4
     Diluted                         $0.65               $0.50           30.0
 
     Shares:
     Basic                          62,528              62,802
     Diluted                        64,753              64,876
 
 
 
     RUBY TUESDAY, INC.
 
     Financial Results For the Third Quarter
     of Fiscal Year 2001 (unaudited)
     (Amounts in thousands except per share amounts)
 
                                                    March 4,          June 4,
     CONDENSED BALANCE SHEETS                         2001              2000
     Assets
      Cash and Short-Term Investments               $11,354           $10,154
      Accounts and Notes Receivable                   6,625             6,880
      Inventories                                     8,341             9,378
      Prepaid Income Taxes                            7,793               312
      Assets Held for Disposal                        3,853            59,057
      Other Current Assets                            6,226             8,674
 
        Total Current Assets                         44,192            94,455
 
      Property and Equipment, Net                   295,303           281,865
      Costs in Excess of Net Assets
       Acquired                                       7,941             8,229
      Notes Receivable, Net                          54,278            23,126
      Deferred Income Taxes                              --             5,355
      Other Assets                                   29,659            26,182
 
        Total Assets                               $431,373          $439,212
 
     Liabilities
      Current Liabilities                           $76,211          $151,796
      Long-Term Debt                                 15,527               636
      Deferred Income Taxes                           2,446                --
      Other Deferred Liabilities                     56,717            56,956
 
        Total Liabilities                           150,901           209,388
 
     Shareholders' Equity                           280,472           229,824
 
        Total Liabilities and
         Shareholders' Equity                      $431,373          $439,212
 
 SOURCE  Ruby Tuesday, Inc.