Ruby Tuesday Q4 revenue down 5.9%, will close 95 restaurants
Staff Writer |
Ruby Tuesday announced fourth quarter and fiscal year 2016 financial results for the periods ended May 31, 2016.
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Q4 total revenue declined 5.9% to $279.3 million, which included a net reduction of 12 corporate-owned Ruby Tuesday restaurants and 17 corporate-owned Lime Fresh Mexican Grill restaurants during fiscal year 2016.
Same-restaurant sales declined 3.7% following a 1.7% decline in the fourth quarter of the prior fiscal year. Restaurant level margin held steady at 18.7%.
Closure and Impairment expense was $43.8 million primarily due to the announced restaurant closures, compared to $4.0 million last year.
Q4 net loss was $27.6 million, or ($0.46) per diluted share, compared to Net Income of $4.3 million, or $0.07 per diluted share in last fiscal year’s fourth quarter.
Adjusted net income was $6.3 million, or $0.10 per diluted share, flat to the prior-year fiscal quarter.
Adjusted EBITDA was $28.3 million compared to $28.7 million in the fourth quarter of the prior fiscal year.
Ruby Tuesday prepaid $5.1 million of mortgage debt, unencumbering 18 corporate-owned restaurants.
Ruby Tuesday recognized a $5.9 million gain on sales of Lime Fresh Mexican Grill assets. As of May 31, 2016, the Company had cash on hand of $67.3 million.
Fiscal year 2016
Total revenue declined 3.1% to $1.1 billion, which included a net reduction of 12 corporate-owned Ruby Tuesday restaurants and 17 corporate-owned Lime Fresh Mexican Grill restaurants during fiscal year 2016.
Same-restaurant sales declined 1.4% following a 0.5% decline in the prior fiscal year. Restaurant level margin contracted 10 basis points to 16.8%.
Net Loss was $50.7 million, or ($0.83) per diluted share, compared to Net Loss of $3.2 million, or ($0.05) per diluted share in the last fiscal year.
Closure and Impairment expense was $62.7 million, compared to $10.5 million in the prior fiscal year.
Adjusted net income was $3.9 million, or $0.06 per diluted share, compared to Adjusted net income of $4.1 million, or $0.07 per diluted share in the last fiscal year.
Adjusted EBITDA was $77.7 million compared to $80.6 million in the prior fiscal year.
Ruby Tuesday said it would shut about 13% of its restaurants as the chain grapples with falling traffic and declining revenue, trends it expects to persist.
The Tennessee-based restaurant operator said it would close about 95 underperforming locations next month. Ruby Tuesday counted 724 restaurants in its system as of the end of May, with most of them owned by the company. ■