Ruths Hospitality (RUTH) 8-K Preliminary Andunaudited Quarterly Condensed Consolidated Statements of Income (Loss) and Non-gaap Financial Measures

Exhibit 99.1

PRELIMINARY ANDUNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND NON-GAAP FINANCIAL MEASURES

The preliminary and unaudited quarterly condensed consolidated statements of income (loss) and the non-GAAP financial measures have been prepared as a supplement to the pro forma financial statements to illustrate the quarterly impact of the reclassification of the Mitchell’s Restaurants’ operating results to discontinued operations for fiscal years 2014 and 2013. The fiscal year 2013 operating results of three additional locations closed in fiscal year 2014 have also been reclassified to the discontinued operations line of the quarterly condensed consolidated statements of income. Therefore, the quarterly condensed consolidated statements of income do not agree to the pro forma financial statements presented in Exhibit 99.3 for fiscal year 2013.

RUTH'S HOSPITALITY GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Loss) - Preliminary and Unaudited

(Amounts in thousands, except share and per share data)

	Quarter Ended															Quarter Ended
	March 31,			June 30,			September 29,			December 29,			FiscalYear			March 30,			June 29,			September 28,			Year to Date
	2013			2013			2013			2013			2013			2014			2014			2014			Q3 2014
Revenues:
Restaurant sales	$	81,325		$	73,744		$	64,432		$	84,699		$	304,200		$	85,070		$	77,989		$	69,283		$	232,342
Franchise income		3,663			3,647			3,498			4,203			15,011			4,036			3,807			3,517			11,360
Other operating income		891			2,802			721			(1,271	)		3,143			1,248			1,210			995			3,453
Total revenues		85,879			80,193			68,651			87,631			322,354			90,354			83,006			73,795			247,155
Costs and expenses:
Food and beverage costs		25,104			22,097			19,867			26,318			93,386			26,667			24,828			22,165			73,661
Restaurant operating expenses		37,083			35,624			34,668			38,289			145,664			38,843			37,741			37,238			113,821
Marketing and advertising		1,579			3,087			1,362			3,312			9,340			1,746			1,923			1,990			5,658
General and administrative costs		6,635			6,695			6,642			7,836			27,808			6,225			5,847			5,352			17,424
Depreciation and amortization expenses		2,689			2,539			2,452			2,550			10,230			2,510			2,714			2,693			7,918
Pre-opening costs		1			142			316			232			691			409			119			395			924
Gain on settlements, net		-			-			(1,719	)		-			(1,719	)		-			-			-			-
Total costs and expenses		73,091			70,184			63,588			78,537			285,400			76,400			73,172			69,833			219,406
Operating income		12,788			10,009			5,063			9,094			36,954			13,954			9,834			3,962			27,749
Other income (expense):
Interest expense		(516	)		(415	)		(414	)		(295	)		(1,640	)		(287	)		(298	)		(297	)		(881	)
Other		25			(1	)		(101	)		(1	)		(77	)		9			12			5			25
Income from continuing operations before income tax expense		12,297			9,593			4,548			8,798			35,237			13,676			9,548			3,670			26,893
Income tax expense		3,881			2,452			1,623			2,787			10,744			4,686			2,880			1,472			9,038
Income from continuing operations		8,416			7,141			2,925			6,011			24,493			8,990			6,668			2,198			17,855
Discontinued operations:
Income (loss) from discontinued operations, net of income taxes		(755	)		626			(38	)		(1,836	)		(2,004	)		(125	)		236			(9,496	)		(9,385	)
Net income (loss)	$	7,661		$	7,767		$	2,887		$	4,175		$	22,489		$	8,865		$	6,904		$	(7,298	)	$	8,470
Basic earnings (loss) per common share:
Continuing operations	$	0.24		$	0.20		$	0.08		$	0.17		$	0.71		$	0.25		$	0.19		$	0.06		$	0.51
Discontinued operations		(0.02	)	$	0.02			(0.00	)		(0.05	)		(0.06	)		(0.00	)		0.01			(0.27	)		(0.27	)
Basic earnings (loss) per share	$	0.22		$	0.22		$	0.08		$	0.12		$	0.65		$	0.25		$	0.20		$	(0.21	)	$	0.24
Diluted earnings (loss) per common share:
Continuing operations	$	0.24		$	0.20		$	0.08		$	0.17		$	0.69		$	0.25		$	0.18		$	0.06		$	0.51
Discontinued operations		(0.02	)		0.02			(0.00	)		(0.05	)		(0.06	)		(0.00	)	$	0.01			(0.27	)	$	(0.27	)
Diluted earnings (loss) per share	$	0.22		$	0.22		$	0.08		$	0.12		$	0.63		$	0.25		$	0.19		$	(0.21	)	$	0.24
Shares used in computing earnings (loss) per common share:
Basic		34,456,380			34,660,149			34,956,353			34,978,903			34,761,160			35,094,652			35,122,131			34,925,592			35,047,458
Diluted		35,505,778			35,681,077			35,795,508			35,858,859			35,784,430			35,822,458			35,587,975			34,925,592			35,567,738
Dividends declared per common share	$	-		$	0.04		$	0.04		$	0.04		$	0.12		$	0.05		$	0.05		$	0.05		$	0.15

NON-GAAP FINANCIAL MEASURES

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our press releases announcing quarterly earnings, we have made reference to non-GAAP net income and non-GAAP diluted earnings per common share. These non-GAAP measurements were calculated by excluding certain non-recurring items and losses from discontinued operations. These non-GAAP measurements have been included as supplemental information. We believe that this measure represents a useful internal measure of performance. Accordingly, where these non-GAAP measures are provided, it is done so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in assessing our underlying performance on a quarter-over-quarter basis. However, because these measures are not determined in accordance with accounting principles generally accepted in the United States, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, the aforementioned measures as presented may not be directly comparable to similarly titled measures presented by other companies. These non-GAAP financial measure are presented as supplemental information and not as an alternative to any GAAP measurements.

Reconciliation of Non-GAAP Financial Measure - Unaudited

(Amounts in thousands, except share data)

	Quarter Ended													Quarter Ended
	March 31,		June 30,			September 29,			December 29,		Fiscal Year			March 30,		June 29,			September 28,			Year to Date
	2013		2013			2013			2013		2013			2014		2014			2014			Q3 2014
GAAP net income	$	7,661	$	7,767		$	2,887		$	4,175	$	22,489		$	8,865	$	6,904			(7,298	)	$	8,470
Net of tax impact of excluding a cumulative adjustment from a change in accounting estimate related to gift card breakage revenue		-		-			-			1,306		1,306			-		-			-			-
Net of tax impact of excluding gain on settlements		-		-			(1,049	)		-		(1,049	)		-		-			-			-
Impact of excluding certain income tax items		-		(616	)		-			-		(784	)		-		-			-			-
Net of tax impact of excluding loss (income) on discontinued operations		755		(626	)		38			1,836		2,004			125		(236	)		9,496			9,385
Non-GAAP net income	$	8,416	$	6,525		$	1,876		$	7,317	$	23,966		$	8,990	$	6,668		$	2,198		$	17,855
Non-GAAP diluted earnings per share	$	0.24	$	0.18		$	0.05		$	0.20	$	0.67		$	0.25	$	0.19		$	0.06		$	0.50
Shares:
Weighted average number of common shares outstanding - basic		34,456,380		34,660,149			34,956,353			34,978,903		34,761,160			35,094,652		35,122,131			34,925,592			35,047,458
Dilutive shares		1,049,398		1,020,928			839,155			879,956		1,023,270			727,806		465,844			379,814			520,280
Weighted-average number of common shares outstanding - diluted		35,505,778		35,681,077			35,795,508			35,858,859		35,784,430			35,822,458		35,587,975			35,305,406			35,567,738