Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Ruths Hospitality Group, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -15 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1324272 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 29-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Unvested Restricted Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 483,272 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,909,812 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets - Unaudited (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $3,424 | $4,301 |
Accounts receivable, less allowance for doubtful accounts 2015 - $755; 2014 - $760 | 20,657 | 20,458 |
Inventory | 7,123 | 7,206 |
Assets held for sale | 250 | 15,119 |
Prepaid expenses and other | 1,829 | 1,291 |
Deferred income taxes | 3,685 | 3,775 |
Total current assets | 36,968 | 52,150 |
Property and equipment, net of accumulated depreciation 2015 - $117,568; 2014 - $114,708 | 80,779 | 80,354 |
Goodwill | 24,293 | 24,293 |
Deferred income taxes | 11,448 | 25,054 |
Other assets | 1,539 | 1,704 |
Total assets | 189,979 | 218,567 |
Trademarks | 118 | 118 |
Current liabilities: | ||
Accounts payable | 8,884 | 13,414 |
Accrued payroll | 12,937 | 15,304 |
Accrued expenses | 6,247 | 11,065 |
Deferred revenue | 28,454 | 34,552 |
Liabilities associated with assets held for sale | 4,869 | |
Other current liabilities | 5,349 | 7,277 |
Total current liabilities | 61,871 | 86,481 |
Long-term debt | 3,000 | 13,000 |
Deferred rent | 20,329 | 19,990 |
Other liabilities | 2,725 | 2,785 |
Total liabilities | 87,925 | 122,256 |
Commitments and contingencies (Note 11) | 0 | 0 |
Common stock, par value $.01 per share; 100,000,000 shares authorized, 34,340,963 shares issued and outstanding at March 29, 2015 34,333,858 shares issued and outstanding at December 28, 2014 | 343 | 343 |
Additional paid-in capital | 152,869 | 155,455 |
Accumulated deficit | -51,158 | -59,487 |
Total shareholders' equity | 102,054 | 96,311 |
Total liabilities and shareholders' equity | 189,979 | 218,567 |
Franchise Rights [Member] | ||
Current assets: | ||
Finite-lived intangible assets, net | 32,418 | 32,418 |
Other Intangible Assets [Member] | ||
Current assets: | ||
Finite-lived intangible assets, net | $2,416 | $2,476 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets - Unaudited (Parentheticals) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts (in Dollars) | $755 | $760 |
Property and equipment, accumulated depreciation (in Dollars) | 117,568 | 114,708 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 34,340,963 | 34,333,858 |
Common stock, shares outstanding | 34,340,963 | 34,333,858 |
Treasury stock, shares | 71,950 | 71,950 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization (in Dollars) | $1,024 | $1,001 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income - Unaudited (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenues: | ||
Restaurant sales | $92,071 | $85,070 |
Franchise income | 4,021 | 4,036 |
Other operating income | 1,252 | 1,248 |
Total revenues | 97,344 | 90,354 |
Costs and expenses: | ||
Food and beverage costs | 28,100 | 26,667 |
Restaurant operating expenses | 41,701 | 38,843 |
Marketing and advertising | 1,593 | 1,746 |
General and administrative costs | 6,447 | 6,225 |
Depreciation and amortization expenses | 2,919 | 2,510 |
Pre-opening costs | 376 | 409 |
Total costs and expenses | 81,136 | 76,400 |
Operating income | 16,208 | 13,954 |
Other income (expense): | ||
Interest expense, net | -226 | -287 |
Other | 15 | 9 |
Income from continuing operations before income tax expense | 15,997 | 13,676 |
Income tax expense | 5,229 | 4,686 |
Income from continuing operations | 10,768 | 8,990 |
Loss from discontinued operations, net of income tax benefit: 2015 - $295; 2014 - $388 | -357 | -125 |
Net income | $10,411 | $8,865 |
Basic earnings (loss) per common share: | ||
Continuing operations (in Dollars per share) | $0.31 | $0.25 |
Discontinued operations (in Dollars per share) | ($0.01) | $0 |
Basic earnings per share (in Dollars per share) | $0.30 | $0.25 |
Diluted earnings (loss) per common share: | ||
Continuing operations (in Dollars per share) | $0.31 | $0.25 |
Discontinued operations (in Dollars per share) | ($0.01) | $0 |
Diluted earnings per share (in Dollars per share) | $0.30 | $0.25 |
Shares used in computing net income (loss) per common share: | ||
Basic (in Shares) | 34,216,357 | 35,094,652 |
Diluted (in Shares) | 34,515,515 | 35,822,458 |
Dividends declared per common share (in Dollars per share) | $0.06 | $0.05 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income - Unaudited (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
IncomP5 (loss) from discontinuP5d opP5rations, incomP5 tax P5xpP5nsP5 (bP5nP5fit) | ($295) | ($388) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholdersb Equity - Unaudited (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 29, 2013 | $350 | $169,107 | ($68,804) | $100,653 | |
Balance (in Shares) at Dec. 29, 2013 | 34,990,000 | 72,000 | |||
Net income | 8,865 | 8,865 | |||
Cash dividends | -1,798 | -1,798 | |||
Repurchase of common stock | -2 | -3,146 | -3,148 | ||
Repurchase of common stock (in Shares) | -250,000 | -249,600 | |||
Shares issued under stock compensation plan | 4 | -1,980 | -1,976 | ||
Shares issued under stock compensation plan (in Shares) | 392,000 | ||||
Excess tax benefit from stock based compensation | 1,339 | 1,339 | |||
Stock-based compensation | 534 | 534 | |||
Balance at Mar. 30, 2014 | 351 | 165,854 | -61,737 | 104,468 | |
Balance (in Shares) at Mar. 30, 2014 | 35,133,000 | 72,000 | |||
Balance at Dec. 28, 2014 | 343 | 155,455 | -59,487 | 96,311 | |
Balance (in Shares) at Dec. 28, 2014 | 34,334,000 | 72,000 | |||
Net income | 10,411 | 10,411 | |||
Cash dividends | -2,082 | -2,082 | |||
Repurchase of common stock | -2 | -2,991 | -2,993 | ||
Repurchase of common stock (in Shares) | -208,000 | -207,657 | |||
Shares issued under stock compensation plan | 2 | -824 | -822 | ||
Shares issued under stock compensation plan (in Shares) | 215,000 | ||||
Excess tax benefit from stock based compensation | 482 | 482 | |||
Stock-based compensation | 747 | 747 | |||
Balance at Mar. 29, 2015 | $343 | $152,869 | ($51,158) | $102,054 | |
Balance (in Shares) at Mar. 29, 2015 | 34,341,000 | 72,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows - Unaudited (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net income | $10,411 | $8,865 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,919 | 3,127 |
Deferred income taxes | 13,696 | 653 |
Non-cash interest expense | 105 | 105 |
Amortization of below market lease | 0 | 32 |
Stock-based compensation expense | 747 | 534 |
Accounts receivable | -199 | 2,990 |
Inventories | 84 | 286 |
Prepaid expenses and other | -538 | 389 |
Other assets | 83 | 11 |
Accounts payable and accrued expenses | -11,498 | -9,906 |
Deferred revenue | -6,099 | -5,742 |
Deferred rent | 339 | -503 |
Other liabilities | -891 | 1,009 |
Net cash provided by operating activities | 9,159 | 1,850 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | -4,621 | -3,330 |
Acquisition of franchised restaurant, net of cash acquired | 0 | -2,800 |
Proceeds from sale of the Mitchell's Restaurants | 10,000 | 0 |
Net cash provided by (used in) investing activities | 5,379 | -6,130 |
Cash flows from financing activities: | ||
Principal borrowings on long-term debt | 12,000 | 9,000 |
Principal repayments on long-term debt | -22,000 | -6,000 |
Repurchase of common stock | -2,993 | -3,148 |
Tax payments from the vesting of restricted stock and option exercises | -1,015 | -2,164 |
Excess tax benefits from stock compensation | 482 | 1,339 |
Proceeds from the exercise of stock options | 193 | 188 |
Cash dividend payments | -2,082 | -1,798 |
Net cash used in financing activities | -15,415 | -2,583 |
Net decrease in cash and cash equivalents | -877 | -6,863 |
Cash and cash equivalents at beginning of period | 4,301 | 10,586 |
Cash and cash equivalents at end of period | 3,424 | 3,723 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 133 | 163 |
Income taxes | 45 | 55 |
Noncash investing and financing activities: | ||
Accrued acquisition of property and equipment | $431 | $320 |
Note_1_The_Company_and_Basis_o
Note 1 - The Company and Basis of Presentation | 3 Months Ended |
Mar. 29, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (1) The Company and Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the Company) as of March 29, 2015 and December 28, 2014 and for the fiscal quarters ended March 29, 2015 and March 30, 2014 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). The consolidated financial statements include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | |
Ruth’s Hospitality Group, Inc. is a leading restaurant company focused on the upscale dining segment. Ruth’s Hospitality Group, Inc. operates Company-owned Ruth’s Chris Steak House restaurants and sells franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. As of March 29, 2015, there were 144 Ruth’s Chris Steak House restaurants, including 66 Company-owned restaurants, one restaurant operating under a management agreement and 77 franchisee-owned restaurants, including 20 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, El Salvador, Japan, Mexico, Panama, Singapore, Taiwan and the United Arab Emirates. In February 2015, the Company opened a new Ruth’s Chris Steak House restaurant in St. Petersburg, FL. All Company owned restaurants are located in the United States. | |
As of December 28, 2014, the Company also operated eighteen Mitchell’s Fish Markets and three Mitchell’s/Cameron’s Steakhouse restaurants (collectively, the Mitchell’s Restaurants), located primarily in the Midwest and Florida. On January 21, 2015, the Company sold the Mitchell’s Restaurants to a third party (see Note 2). For financial reporting purposes, the Mitchell’s Restaurants are classified as a discontinued operation for all periods presented and, as of December 28, 2014, the assets are classified as held for sale. | |
The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended March 29, 2015 and March 30, 2014 are not necessarily indicative of the results that may be achieved for the full year. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the SEC’s rules and regulations. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014. | |
The Company operates on a 52- or 53-week fiscal year ending on the last Sunday in December. The fiscal quarters ended March 29, 2015 and March 30, 2014 each contained thirteen weeks and are referred to herein as the first quarter of fiscal year 2015 and the first quarter of fiscal year 2014, respectively. Fiscal years 2015 and 2014 are both 52-week years. | |
Estimates | |
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, trademarks and obligations related to gift cards, workers’ compensation and medical insurance. Actual results could differ from those estimates. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation. Most significantly, the results of the Mitchell’s Restaurants have been reclassified as a discontinued operation. These reclassifications had no effect on previously reported net income. | |
Recent Accounting Pronouncements for Future Application | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. The new standard is effective for interim and annual periods in fiscal years beginning after December 15, 2016. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
The FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” in April of 2015, which requires entities to present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Entities will no longer record the cost of issuing debt as a separate asset, except when the cost is incurred before receipt of the funding from the associated debt liability. The new standard is effective for interim and annual periods beginning after December 15, 2015. The Company is currently evaluating the effect of the standard on its ongoing financial reporting. |
Note_2_Mitchells_Restaurants
Note 2 - Mitchell's Restaurants | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Note 2 - Mitchell's Restaurants [Line Items] | |||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (3) Discontinued Operations | ||||||||
The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360-10, “Property, Plant and Equipment.” As of December 29, 2015, the Company adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changed the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. ASU 2014-08 requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations that has a major effect on its operations and financial results. Therefore, individual restaurants which are closed after December 28, 2014 will not be classified as discontinued operations. Prior to the Company’s adoption of ASU 2014-08, when a restaurant was closed or the restaurant was either held for sale or abandoned, the restaurant’s operations were eliminated from the ongoing operations. Accordingly, the operations of such restaurants, net of applicable income taxes, are presented as discontinued operations and prior period operations of such restaurants, net of applicable income taxes, were reclassified. For the first quarters of fiscal years 2015 and 2014, all restaurant sales, direct costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption entitled loss from discontinued operations, net of income tax benefit in the condensed consolidated statements of income for all periods presented. Loss from discontinued operations, net of income tax benefit is comprised of the following (in thousands): | |||||||||
13 Weeks Ended | |||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Revenues | |||||||||
Mitchell's Restaurants | $ | 4,343 | $ | 18,654 | |||||
Other Restaurants | - | 1,943 | |||||||
Total revenues | 4,343 | 20,597 | |||||||
Costs and expenses | |||||||||
Recurring costs and expenses | |||||||||
Mitchell's Restaurants | 4,922 | 18,867 | |||||||
Other Restaurants | 73 | 2,243 | |||||||
Total costs and expenses | 4,995 | 21,110 | |||||||
Loss before income taxes | (652 | ) | (513 | ) | |||||
Income tax benefit | (295 | ) | (388 | ) | |||||
Loss from discontinued operations, net of income taxes | $ | (357 | ) | $ | (125 | ) | |||
In addition to the Mitchell’s Restaurants, discontinued operations for the fiscal quarters of 2015 and 2014 also includes the results of the other closed restaurants. Due to an expiring lease term, the Company closed the Company-owned Ruth’s Chris Steak House in Kansas City, MO in March 2014 after seventeen years of operation. As the closing of this restaurant coincided with the termination of the lease agreement, the Company did not incur significant expenses related to closing this location. Due to local market conditions and disappointing financial results, the Company negotiated early terminations of the facility leases for the Stamford, CT Mitchell’s Fish Market restaurant, which closed in March 2014, and the Providence, RI Ruth’s Chris Steak House restaurant, which closed in September 2014. | |||||||||
Cash flows from discontinued operations are combined with the cash flows from continuing operations within each of the categories on our condensed consolidated statement of cash flows. Except for the receipt of $10 million for the sale of the Mitchell’s Restaurants during the first quarter of fiscal year 2015, we do not anticipate that the sale of the Mitchell’s Restaurants or any of our closed restaurants reported as discontinued operations will have a material impact on the Company’s cash flow during fiscal year 2015. | |||||||||
Mitchell's Restaurants [Member] | |||||||||
Note 2 - Mitchell's Restaurants [Line Items] | |||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (2) Mitchell’s Restaurants | ||||||||
In November 2014, the Company, Landry’s, Inc. and Mitchell’s Entertainment, Inc., an affiliate of Landry’s Inc. (together with Landry’s Inc., Landry’s), entered into an asset purchase agreement (the Agreement). Pursuant to the Agreement, the Company agreed to sell the Mitchell’s Restaurants and related assets to Landry’s for $10 million. The sale of the Mitchell’s Restaurants closed on January 21, 2015. The assets sold consisted primarily of leasehold interests, leasehold improvements, restaurant equipment and furnishings, inventory, and related intangible assets, including brand names and trademarks associated with the 21 Mitchell’s Restaurants. The assets and related liabilities of the Mitchell’s Restaurants are classified as held for sale in the consolidated balance sheet as of December 28, 2014. The results of operations, impairment charges and loss on assets held for sale have been classified as discontinued operations in the consolidated statements of income for all periods presented. No amounts for shared general and administrative costs or interest expense were allocated to discontinued operations. Substantially all direct cash flows related to operating these restaurants were eliminated on the closing date of the sale. The Company’s continuing involvement is limited to the provision of transition services for up to four months with minimal impact on cash flows. | |||||||||
Under the terms of the Agreement, Landry’s assumed the Mitchell’s Restaurants’ facility lease obligations and the Company will reimburse Landry’s for gift cards that were sold prior to the closing date and are used at the Mitchell’s Restaurants during the eighteen months following the closing date. In the Agreement, the Company and Landry’s have made customary representations and warranties and have agreed to customary covenants relating to the sale of the Mitchell’s Restaurants. Specifically, (i) before the closing date, the Company was subject to certain business conduct restrictions with respect to its operation of the Mitchell’s Restaurants, and (ii) for eighteen months following the closing date, neither the Company nor Landry’s will knowingly solicit or employ, or seek to solicit or employ, certain key employees of the other party, subject to certain limited exceptions. Landry’s offered employment to substantially all of the employees of the Mitchell’s Restaurants. The Company and Landry’s have agreed to indemnify each other for losses arising from certain breaches of the Agreement and for certain other liabilities. | |||||||||
The Company has guaranteed Landry’s lease obligations aggregating $39.6 million under nine of the Mitchell’s Restaurants’ leases. The Company did not record a financial accounting liability for the lease guarantees, because the likelihood of Landry’s defaulting on the lease agreements was deemed to be remote. Landry’s also indemnified the Company in the event of a default under any of the leases. The Company did record a $250 thousand liability for its letter of credit obligation related to one of the leases. | |||||||||
The following summarizes the financial statement carrying amounts of assets and liabilities associated with the Mitchell’s Restaurants which are classified as held for sale (in thousands): | |||||||||
March 29, | December 28, | ||||||||
2015 | 2014 | ||||||||
Inventory | $ | - | $ | 952 | |||||
Property and equipment, net | - | 8,775 | |||||||
Trademarks | - | 2,847 | |||||||
Other intangibles | 250 | 2,545 | |||||||
Total assets held for sale | $ | 250 | $ | 15,119 | |||||
Deferred rent liability | $ | - | $ | 4,869 | |||||
Total liabilities associated with assets held for sale | $ | - | $ | 4,869 | |||||
As of March 29, 2015, the Company owned a liquor license related to the Mitchell’s Restaurants, which is classified as held for sale in the consolidated balance sheet as of March 29, 2015. |
Note_4_Longterm_Debt
Note 4 - Long-term Debt | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Disclosure [Text Block] | (4) Long-term Debt | ||||||||
Long-term debt consists of the following (in thousands): | |||||||||
March 29, | December 28, | ||||||||
2015 | 2014 | ||||||||
Senior Credit Facility: | |||||||||
Revolving credit facility | $ | 3,000 | $ | 13,000 | |||||
Less current maturities | - | - | |||||||
$ | 3,000 | $ | 13,000 | ||||||
As of March 29, 2015, the Company had $3.0 million of outstanding indebtedness under its senior credit facility with approximately $92.8 million of borrowings available, net of outstanding letters of credit of approximately $4.2 million. As of March 29, 2015, the weighted average interest rate on the Company’s outstanding indebtedness and letters of credit was 2.2%. In addition, the fee on the Company’s unused senior credit facility was 0.2%. | |||||||||
On February 14, 2012, the Company entered into a Second Amended and Restated Credit Agreement with Wells Fargo Bank, as administrative agent, and certain other lenders (the Amended and Restated Credit Agreement). The Amended and Restated Credit Agreement allows for loan advances plus outstanding letters of credit of up to $100 million to be outstanding at any time that the conditions for borrowings are met. The Amended and Restated Credit Agreement sets the interest rates applicable to borrowings based on the Company’s actual leverage ratio, ranging (a) from 2.00% to 2.75% above the applicable LIBOR rate or (b) at the Company’s option, from 1.00% to 1.75% above the applicable base rate. | |||||||||
The Amended and Restated Credit Agreement contains customary covenants and restrictions, including, but not limited to: (1) prohibitions on incurring additional indebtedness and from guaranteeing obligations of others; (2) prohibitions on creating, incurring, assuming or permitting to exist any lien on or with respect to any property or asset; (3) limitations on the Company’s ability to enter into joint ventures, acquisitions, and other investments; (4) prohibitions on directly or indirectly creating or becoming liable with respect to certain contingent liabilities; and (5) restrictions on directly or indirectly declaring, ordering, paying, or making any restricted junior payments. The Amended and Restated Credit Agreement requires the Company to maintain a fixed charge coverage ratio of 1.25:1.00 and the maximum leverage ratio of 2.50:1.00. The agreement was amended in May 2013 to reset the limit applicable to junior stock payments, which include both cash dividend payments and repurchase of common and preferred stock. Junior stock payments made subsequent to December 30, 2012 through the end of the agreement are limited to $100 million; $31.9 million of such payments had been made as of March 29, 2015. The Company’s obligations under the Amended and Restated Credit Agreement are guaranteed by each of its existing and future subsidiaries and are secured by substantially all of its assets and a pledge of the capital stock of its subsidiaries. The Amended and Restated Credit Agreement includes customary events of default. As of March 29, 2015, the Company was in compliance with the covenants under the Amended and Restated Credit Agreement. |
Note_5_Shareholders_Equity
Note 5 - Shareholders' Equity | 3 Months Ended | ||||||||||
Mar. 29, 2015 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Stockholders' Equity Note Disclosure [Text Block] | (5) Shareholders’ Equity | ||||||||||
In May 2013, the Company announced that its Board of Directors approved a common stock repurchase program. Under the program, the Company was authorized from time to time to purchase up to $30 million of its outstanding common stock. During the fiscal quarter ended March 30, 2014, 249,600 shares were repurchased at an aggregate cost of $3.1 million, or an average cost of $12.58 per share. The share repurchases were made in the open market at the Company’s discretion, within pricing parameters set by the Board of Directors. | |||||||||||
On November 17, 2014, the Company announced that its Board of Directors approved a new share repurchase program under which the Company is authorized to repurchase up to $50 million of outstanding common stock from time to time in the open market, through negotiated transactions or otherwise, depending on share price, market conditions and other factors. The new share repurchase program replaced the Company’s previous share repurchase program announced in May 2013, which was terminated. The new share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and has no termination date. During the first quarter of fiscal year 2015, 207,657 shares were repurchased under this new program at an aggregate cost of $3.0 million, or an average cost of $14.42 per share. As of March 29, 2015, $41.9 million remained available for future purchases under the new program. Share repurchases under both programs were accounted for under the cost method and all repurchased shares were retired and cancelled. The excess of the purchase price over the par value of the shares was recorded as a reduction in additional paid-in capital. | |||||||||||
The Company’s Board of Directors declared the following dividends during the periods presented (amounts in thousands, except per share amounts): | |||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount | Payment Date | |||||||
Fiscal Year 2015: | |||||||||||
13-Feb-15 | $ | 0.06 | 26-Feb-15 | $ | 2,082 | 12-Mar-15 | |||||
Fiscal Year 2014: | |||||||||||
21-Feb-14 | $ | 0.05 | 13-Mar-14 | $ | 1,798 | 27-Mar-14 | |||||
Subsequent to the end of the first quarter of fiscal year 2015, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.06 per common and restricted share, or $2.1 million in the aggregate, payable on May 28, 2015. | |||||||||||
Outstanding unvested restricted stock is not included in common stock outstanding amounts. Restricted stock outstanding as of March 29, 2015 aggregated 499,938 shares. |
Note_6_Fair_Value_Measurements
Note 6 - Fair Value Measurements | 3 Months Ended |
Mar. 29, 2015 | |
Disclosure Text Block [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | (6) Fair Value Measurements |
The carrying amounts of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses and other current liabilities are reasonable estimates of their fair values due to their short duration. Borrowings classified as long-term debt as of March 29, 2015 have variable interest rates that reflect currently available terms and conditions for similar debt. The carrying amount of this debt is a reasonable estimate of its fair value (Level 2). | |
At the end of the first quarter of fiscal year 2015, the Company had no assets or liabilities measured on a recurring or nonrecurring basis subject to the disclosure requirements of “Fair Value Measurements and Disclosures,” FASB ASC Topic 820. |
Note_7_Segment_Information
Note 7 - Segment Information | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting Disclosure [Text Block] | (7) Segment Information | ||||||||
Previously, the Company provided financial information for three operating segments: the Company-owned steakhouse restaurant segment, the Company-owned fish market restaurant segment and the franchise operations segment. As a consequence of the sale of the Mitchell’s Restaurants, management has determined that the Company has two reportable segments – the Company-owned steakhouse segment and the franchise operations segment. Previously reported segment information has been revised to exclude the Mitchell’s Restaurants. The Company does not rely on any major customers as a source of revenue. | |||||||||
The Company-owned Ruth’s Chris Steak House restaurants, all of which are located in North America, operate within the full-service dining industry, providing similar products to similar customers. Revenues are derived principally from food and beverage sales. As of March 29, 2015, (i) the Company-owned steakhouse restaurant segment included 66 Ruth’s Chris Steak House restaurants and one Ruth’s Chris Steak House restaurant operating under a management agreement and (ii) the franchise operations segment included 77 franchisee-owned Ruth’s Chris Steak House restaurants. Segment profits for the Company-owned steakhouse restaurant segments equal segment revenues less segment expenses. Segment revenues for the Company-owned steakhouse restaurants include restaurant sales, management agreement income and other restaurant income. Gift card breakage revenue is not allocated to operating segments. Not all operating expenses are allocated to operating segments. Segment expenses for the Company-owned steakhouse segment include food and beverage costs and restaurant operating expenses. No other operating costs are allocated to the segments for the purpose of determining segment profits because such costs are not directly related to the operation of individual restaurants. The accounting policies applicable to each segment are consistent with the policies used to prepare the consolidated financial statements. The profit of the franchise operations segment equals franchise income, which consists of franchise royalty fees and franchise opening fees. No costs are allocated to the franchise operations segment. | |||||||||
Segment information related to the Company’s two reportable business segments follows (in thousands): | |||||||||
13 Weeks Ended | |||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
Company-owned steakhouse restaurants | $ | 92,594 | $ | 85,568 | |||||
Franchise operations | 4,021 | 4,036 | |||||||
Unallocated other revenue and revenue discounts | 729 | 750 | |||||||
Total revenues | $ | 97,344 | $ | 90,354 | |||||
Segment profits: | |||||||||
Company-owned steakhouse restaurants | $ | 22,793 | $ | 20,058 | |||||
Franchise operations | 4,021 | 4,036 | |||||||
Total segment profit | 26,814 | 24,094 | |||||||
Unallocated operating income | 729 | 750 | |||||||
Marketing and advertising expenses | (1,593 | ) | (1,746 | ) | |||||
General and administrative costs | (6,447 | ) | (6,225 | ) | |||||
Depreciation and amortization expenses | (2,919 | ) | (2,510 | ) | |||||
Pre-opening costs | (376 | ) | (409 | ) | |||||
Interest expense, net | (226 | ) | (287 | ) | |||||
Other income | 15 | 9 | |||||||
Income from continuing operations before income tax expense | $ | 15,997 | $ | 13,676 | |||||
Capital expenditures: | |||||||||
Company-owned steakhouse restaurants | $ | 4,309 | $ | 2,564 | |||||
Corporate assets | 87 | 488 | |||||||
Mitchell's Restaurants | 225 | 278 | |||||||
Total capital expenditures | $ | 4,621 | $ | 3,330 | |||||
March 29, | December 28, | ||||||||
2015 | 2014 | ||||||||
Total assets: | |||||||||
Company-owned steakhouse restaurants | $ | 151,628 | $ | 155,757 | |||||
Franchise operations | 1,462 | 2,151 | |||||||
Corporate assets - unallocated | 21,506 | 16,711 | |||||||
Deferred income taxes - unallocated | 15,133 | 28,829 | |||||||
Mitchell's Restaurants | 250 | 15,119 | |||||||
Total assets | $ | 189,979 | $ | 218,567 | |||||
Note_8_StockBased_Employee_Com
Note 8 - Stock-Based Employee Compensation | 3 Months Ended |
Mar. 29, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (8) Stock-Based Employee Compensation |
Under the Amended and Restated 2005 Equity Incentive Plan, at March 29, 2015, there were 385,712 shares of common stock issuable upon exercise of currently outstanding options, 499,938 currently outstanding restricted stock awards and 2,630,809 shares available for future grants. During the first quarter of fiscal year 2015, the Company issued 158,662 restricted stock awards to directors, officers and other employees of the Company. Of the 158,662 restricted stock awards issued during the first quarter of fiscal year 2015, 104,567 shares will vest pro rata over three annual service periods through March 9, 2018 and 54,095 will vest upon completion of a two-year service period on March 9, 2017. Total stock compensation expense recognized during the first quarters of fiscal years 2015 and 2014 was $747 thousand and $534 thousand, respectively. |
Note_9_Income_Taxes
Note 9 - Income Taxes | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | (9) Income Taxes | ||||||||
Income tax expense differs from amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes as follows: | |||||||||
13 Weeks Ended | |||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Income tax expense at statutory rates | 35 | % | 35 | % | |||||
Increase (decrease) in income taxes resulting from: | |||||||||
State income taxes, net of federal benefit | 4.5 | % | 4.5 | % | |||||
Federal employment tax credits | (7.1 | %) | (6.9 | %) | |||||
Other | 0.3 | % | 1.7 | % | |||||
Effective tax rate | 32.7 | % | 34.3 | % | |||||
The Company utilizes the federal FICA tip credit to reduce its periodic federal income tax expense. A restaurant company employer may claim a credit against the company’s federal income taxes for FICA taxes paid on certain tip wages (the FICA tip credit). The credit against income tax liability is for the full amount of eligible FICA taxes. Employers cannot deduct from taxable income the amount of FICA taxes taken into account in determining the credit. | |||||||||
Income taxes applicable to discontinued operations are comprised of (a) taxes calculated at the composite federal and state statutory tax rate times the pre-tax loss plus (b) the FICA tip credit benefit attributable to the restaurant sales of the Mitchell’s Restaurants. A reconciliation of the U.S. statutory tax rate to the effective tax rate applicable to discontinued operations for the first quarters of fiscal years 2015 and 2014 follows: | |||||||||
13 Weeks Ended | |||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Income tax expense at statutory rates | $ | (228 | ) | $ | (180 | ) | |||
Increase (decrease) in income taxes resulting from: | |||||||||
State income taxes, net of federal benefit | (29 | ) | (23 | ) | |||||
Other, primarily federal FICA tip credit net benefit | (38 | ) | (185 | ) | |||||
$ | (295 | ) | $ | (388 | ) | ||||
Effective tax rate | 45.3 | % | 75.6 | % | |||||
During all periods presented, the FICA tip credit net benefit had a disproportionate impact on the income tax rate applicable to discontinued operations due to the Mitchell’s Restaurants generally operating near break even from operations before income taxes. | |||||||||
The Company files consolidated and separate income tax returns in the United States Federal jurisdiction and many state jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal income or state tax examinations for years before 2010. |
Note_10_Earnings_Per_Share
Note 10 - Earnings Per Share | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | (10) Earnings Per Share | ||||||||
The following table sets forth the computation of earnings per share (amounts in thousands, except share and per share amounts): | |||||||||
13 Weeks Ended | |||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Income from continuing operations | $ | 10,768 | $ | 8,990 | |||||
Loss from discontinued operations, net of income taxes | (357 | ) | (125 | ) | |||||
Net income | $ | 10,411 | $ | 8,865 | |||||
Shares: | |||||||||
Weighted average number of common shares outstanding - basic | 34,216,357 | 35,094,652 | |||||||
Weighted average number of common shares outstanding - diluted | 34,515,515 | 35,822,458 | |||||||
Basic earnings (loss) per common share: | |||||||||
Continuing operations | $ | 0.31 | $ | 0.25 | |||||
Discontinued operations | (0.01 | ) | (0.00 | ) | |||||
Basic earnings per common share | $ | 0.3 | $ | 0.25 | |||||
Diluted earnings (loss) per common share: | |||||||||
Continuing operations | $ | 0.31 | $ | 0.25 | |||||
Discontinued operations | (0.01 | ) | (0.00 | ) | |||||
Diluted earnings per common share | $ | 0.3 | $ | 0.25 | |||||
Diluted earnings per share for the first quarters of fiscal years 2015 and 2014 excludes stock options and restricted shares of 66,069 and 138,729 respectively, which were outstanding during the period but were anti-dilutive. The weighted average exercise prices of the anti-dilutive stock options for first quarters of fiscal years 2015 and 2014 were $18.71 per share and $18.69 per share, respectively. |
Note_11_Commitments_and_Contin
Note 11 - Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | (11) Commitments and Contingencies |
The Company is subject to various claims, possible legal actions and other matters arising in the normal course of business. Management does not expect disposition of these other matters to have a material adverse effect on the financial position, results of operations or liquidity of the Company. The Company expenses legal fees as incurred. | |
The legislation and regulations related to tax and unclaimed property matters are complex and subject to varying interpretations by both government authorities and taxpayers. The Company remits a variety of taxes and fees to various governmental authorities, including excise taxes, property taxes, sales and use taxes, and payroll taxes. The taxes and fees remitted by the Company are subject to review and audit by the applicable governmental authorities which could assert claims for additional assessments. Although management believes that the tax positions are reasonable and consequently there are no accrued liabilities for claims which may be asserted, various taxing authorities may challenge certain of the positions taken by the Company which may result in additional liability for taxes and interest. These tax positions are reviewed periodically based on the availability of new information, the lapsing of applicable statutes of limitations, the conclusion of tax audits, the identification of new tax contingencies, or the rendering of relevant court decisions. An unfavorable resolution of assessments by a governmental authority could negatively impact the Company’s results of operations and cash flows in future periods. | |
The Company is subject to unclaimed or abandoned property (escheat) laws which require the Company to turn over to certain state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. The Company is subject to audit by individual U.S. states with regard to its escheatment practices. | |
The Company sells a considerable number of gift cards, which are issued and administered by a third party gift card issuer and service provider, consistent with common retail industry practice. The third party gift card issuer is paid a net fee for its services by the Company. The third party gift card issuer and service provider, as well as a number of other restaurant companies, retailers and gift card issuers, were named as defendants in an action filed under seal in June 2013 by William French on behalf of the State of Delaware in the Superior Court of Delaware in and for New Castle County alleging violations of Delaware law. The filing was unsealed in March 2014. The complaint alleges that approximately $30 million with respect to unused gift cards should be escheated by the Company to the State of Delaware and seeks interest and penalties, attorneys’ fees and costs, and an injunction against alleged future violations of Delaware’s unclaimed property laws. The Company has not yet been served with the complaint. The Company believes that it is in compliance with Delaware’s unclaimed property laws and intends to defend its position vigorously if served. To protect its interests, the Company has joined in a notice to remove the case to federal district court, which was filed in May 2014, and a motion to dismiss filed by all defendants in June 2014. In December 2014, the case was remanded back to Superior Court of Delaware. | |
The Company currently buys a majority of its beef from two suppliers. Although there are a limited number of beef suppliers, management believes that other suppliers could provide similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. |
Note_2_Mitchells_Restaurants_T
Note 2 - Mitchell's Restaurants (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Note 2 - Mitchell's Restaurants (Tables) [Line Items] | |||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | 13 Weeks Ended | ||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Revenues | |||||||||
Mitchell's Restaurants | $ | 4,343 | $ | 18,654 | |||||
Other Restaurants | - | 1,943 | |||||||
Total revenues | 4,343 | 20,597 | |||||||
Costs and expenses | |||||||||
Recurring costs and expenses | |||||||||
Mitchell's Restaurants | 4,922 | 18,867 | |||||||
Other Restaurants | 73 | 2,243 | |||||||
Total costs and expenses | 4,995 | 21,110 | |||||||
Loss before income taxes | (652 | ) | (513 | ) | |||||
Income tax benefit | (295 | ) | (388 | ) | |||||
Loss from discontinued operations, net of income taxes | $ | (357 | ) | $ | (125 | ) | |||
Mitchell's Restaurants [Member] | |||||||||
Note 2 - Mitchell's Restaurants (Tables) [Line Items] | |||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | March 29, | December 28, | |||||||
2015 | 2014 | ||||||||
Inventory | $ | - | $ | 952 | |||||
Property and equipment, net | - | 8,775 | |||||||
Trademarks | - | 2,847 | |||||||
Other intangibles | 250 | 2,545 | |||||||
Total assets held for sale | $ | 250 | $ | 15,119 | |||||
Deferred rent liability | $ | - | $ | 4,869 | |||||
Total liabilities associated with assets held for sale | $ | - | $ | 4,869 |
Note_4_Longterm_Debt_Tables
Note 4 - Long-term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | March 29, | December 28, | |||||||
2015 | 2014 | ||||||||
Senior Credit Facility: | |||||||||
Revolving credit facility | $ | 3,000 | $ | 13,000 | |||||
Less current maturities | - | - | |||||||
$ | 3,000 | $ | 13,000 |
Note_5_Shareholders_Equity_Tab
Note 5 - Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||
Mar. 29, 2015 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Schedule of Dividends Payable [Table Text Block] | Declaration Date | Dividend per Share | Record Date | Total Amount | Payment Date | ||||||
Fiscal Year 2015: | |||||||||||
13-Feb-15 | $ | 0.06 | 26-Feb-15 | $ | 2,082 | 12-Mar-15 | |||||
Fiscal Year 2014: | |||||||||||
21-Feb-14 | $ | 0.05 | 13-Mar-14 | $ | 1,798 | 27-Mar-14 |
Note_7_Segment_Information_Tab
Note 7 - Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 13 Weeks Ended | ||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
Company-owned steakhouse restaurants | $ | 92,594 | $ | 85,568 | |||||
Franchise operations | 4,021 | 4,036 | |||||||
Unallocated other revenue and revenue discounts | 729 | 750 | |||||||
Total revenues | $ | 97,344 | $ | 90,354 | |||||
Segment profits: | |||||||||
Company-owned steakhouse restaurants | $ | 22,793 | $ | 20,058 | |||||
Franchise operations | 4,021 | 4,036 | |||||||
Total segment profit | 26,814 | 24,094 | |||||||
Unallocated operating income | 729 | 750 | |||||||
Marketing and advertising expenses | (1,593 | ) | (1,746 | ) | |||||
General and administrative costs | (6,447 | ) | (6,225 | ) | |||||
Depreciation and amortization expenses | (2,919 | ) | (2,510 | ) | |||||
Pre-opening costs | (376 | ) | (409 | ) | |||||
Interest expense, net | (226 | ) | (287 | ) | |||||
Other income | 15 | 9 | |||||||
Income from continuing operations before income tax expense | $ | 15,997 | $ | 13,676 | |||||
Capital expenditures: | |||||||||
Company-owned steakhouse restaurants | $ | 4,309 | $ | 2,564 | |||||
Corporate assets | 87 | 488 | |||||||
Mitchell's Restaurants | 225 | 278 | |||||||
Total capital expenditures | $ | 4,621 | $ | 3,330 | |||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 29, | December 28, | |||||||
2015 | 2014 | ||||||||
Total assets: | |||||||||
Company-owned steakhouse restaurants | $ | 151,628 | $ | 155,757 | |||||
Franchise operations | 1,462 | 2,151 | |||||||
Corporate assets - unallocated | 21,506 | 16,711 | |||||||
Deferred income taxes - unallocated | 15,133 | 28,829 | |||||||
Mitchell's Restaurants | 250 | 15,119 | |||||||
Total assets | $ | 189,979 | $ | 218,567 |
Note_9_Income_Taxes_Tables
Note 9 - Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Note 9 - Income Taxes (Tables) [Line Items] | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 13 Weeks Ended | ||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Income tax expense at statutory rates | 35 | % | 35 | % | |||||
Increase (decrease) in income taxes resulting from: | |||||||||
State income taxes, net of federal benefit | 4.5 | % | 4.5 | % | |||||
Federal employment tax credits | (7.1 | %) | (6.9 | %) | |||||
Other | 0.3 | % | 1.7 | % | |||||
Effective tax rate | 32.7 | % | 34.3 | % | |||||
Discontinued Operations [Member] | |||||||||
Note 9 - Income Taxes (Tables) [Line Items] | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 13 Weeks Ended | ||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Income tax expense at statutory rates | $ | (228 | ) | $ | (180 | ) | |||
Increase (decrease) in income taxes resulting from: | |||||||||
State income taxes, net of federal benefit | (29 | ) | (23 | ) | |||||
Other, primarily federal FICA tip credit net benefit | (38 | ) | (185 | ) | |||||
$ | (295 | ) | $ | (388 | ) | ||||
Effective tax rate | 45.3 | % | 75.6 | % |
Note_10_Earnings_Per_Share_Tab
Note 10 - Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended | ||||||||
March 29, | March 30, | ||||||||
2015 | 2014 | ||||||||
Income from continuing operations | $ | 10,768 | $ | 8,990 | |||||
Loss from discontinued operations, net of income taxes | (357 | ) | (125 | ) | |||||
Net income | $ | 10,411 | $ | 8,865 | |||||
Shares: | |||||||||
Weighted average number of common shares outstanding - basic | 34,216,357 | 35,094,652 | |||||||
Weighted average number of common shares outstanding - diluted | 34,515,515 | 35,822,458 | |||||||
Basic earnings (loss) per common share: | |||||||||
Continuing operations | $ | 0.31 | $ | 0.25 | |||||
Discontinued operations | (0.01 | ) | (0.00 | ) | |||||
Basic earnings per common share | $ | 0.3 | $ | 0.25 | |||||
Diluted earnings (loss) per common share: | |||||||||
Continuing operations | $ | 0.31 | $ | 0.25 | |||||
Discontinued operations | (0.01 | ) | (0.00 | ) | |||||
Diluted earnings per common share | $ | 0.3 | $ | 0.25 |
Note_1_The_Company_and_Basis_o1
Note 1 - The Company and Basis of Presentation (Details) | Mar. 29, 2015 |
Company-owned Fish Market Restaurants [Member] | Mitchell's Fish Market [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 18 |
Company-owned Steakhouse Restaurants [Member] | Cameron's/Mitchell's Steakhouse [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 3 |
Entity Operated Units [Member] | Ruth's Chris Steak House [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 66 |
Managed [Member] | Ruth's Chris Steak House [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 1 |
Franchised Units [Member] | International [Member] | Ruth's Chris Steak House [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 20 |
Franchised Units [Member] | Ruth's Chris Steak House [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 77 |
Ruth's Chris Steak House [Member] | |
Note 1 - The Company and Basis of Presentation (Details) [Line Items] | |
Number of Restaurants | 144 |
Note_2_Mitchells_Restaurants_D
Note 2 - Mitchell's Restaurants (Details) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Nov. 30, 2014 | |
Note 2 - Mitchell's Restaurants (Details) [Line Items] | |||
Lease Obligations Guaranteed | $39,600,000 | ||
Proceeds from Divestiture of Businesses | 10,000,000 | 0 | |
Mitchell's Restaurants [Member] | |||
Note 2 - Mitchell's Restaurants (Details) [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | 10,000,000 | ||
Number of Restaurants | 21 | ||
Proceeds from Divestiture of Businesses | 10,000,000 | ||
One of the Leases [Member] | |||
Note 2 - Mitchell's Restaurants (Details) [Line Items] | |||
Letters of Credit Outstanding, Amount | $250,000 |
Note_2_Mitchells_Restaurants_D1
Note 2 - Mitchell's Restaurants (Details) - Carrying Amounts of Assets and Liabilities with the Mitchell's Restaurants Classified as Held for Sale (Mitchell's Restaurants [Member], USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventory | $952 | |
Property and equipment, net | 8,775 | |
Total assets held for sale | 250 | 15,119 |
Deferred rent liability | 4,869 | |
Total liabilities associated with assets held for sale | 4,869 | |
Trademarks [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Trademarks | 2,847 | |
Other intangibles | 2,847 | |
Other Intangible Assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Trademarks | 250 | 2,545 |
Other intangibles | $250 | $2,545 |
Note_3_Discontinued_Operations
Note 3 - Discontinued Operations (Details) - Summary of Discontinued Operations (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenues | ||
Revenues | $4,343 | $20,597 |
Recurring costs and expenses | ||
Total costs and expenses | 4,995 | 21,110 |
Loss before income taxes | -652 | -513 |
Income tax benefit | -295 | -388 |
Loss from discontinued operations, net of income taxes | -357 | -125 |
Mitchell's Restaurants [Member] | ||
Revenues | ||
Revenues | 4,343 | 18,654 |
Recurring costs and expenses | ||
Recurring costs and expenses | 4,922 | 18,867 |
Other Restaurants [Member] | ||
Revenues | ||
Revenues | 1,943 | |
Recurring costs and expenses | ||
Recurring costs and expenses | $73 | $2,243 |
Note_4_Longterm_Debt_Details
Note 4 - Long-term Debt (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 29, 2015 | Feb. 14, 2012 | |
Note 4 - Long-term Debt (Details) [Line Items] | ||
Fixed Charge Coverage Ratio after Amendment | 1.25 | |
Maximum Leverage Ratio after Amendment | 2.5 | |
Debt Instrument Covenants on Cash Dividend Payments and Repurchases of Common or Preferred Stock (in Dollars) | $100,000,000 | |
Debt Covenant Limit Used for Cash Dividends and Repurchases of Common or Preferred Stock (in Dollars) | 31,900,000 | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Amended and Restated Credit Agreement [Member] | Senior Credit Facility [Member] | ||
Note 4 - Long-term Debt (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Minimum [Member] | Base Rate [Member] | Amended and Restated Credit Agreement [Member] | Senior Credit Facility [Member] | ||
Note 4 - Long-term Debt (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Amended and Restated Credit Agreement [Member] | Senior Credit Facility [Member] | ||
Note 4 - Long-term Debt (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Maximum [Member] | Base Rate [Member] | Amended and Restated Credit Agreement [Member] | Senior Credit Facility [Member] | ||
Note 4 - Long-term Debt (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Senior Credit Facility [Member] | ||
Note 4 - Long-term Debt (Details) [Line Items] | ||
Long-term Line of Credit (in Dollars) | 3,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity (in Dollars) | 92,800,000 | |
Long-term Debt, Weighted Average Interest Rate | 2.20% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
Letter of Credit [Member] | ||
Note 4 - Long-term Debt (Details) [Line Items] | ||
Letters of Credit Outstanding, Amount (in Dollars) | 4,200,000 | |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $100,000,000 |
Note_4_Longterm_Debt_Details_S
Note 4 - Long-term Debt (Details) - Summary of Long-term Debt (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Senior Credit Facility: | ||
Revolving credit facility | $3,000 | $13,000 |
Less current maturities | 0 | 0 |
$3,000 | $13,000 |
Note_5_Shareholders_Equity_Det
Note 5 - Shareholders' Equity (Details) (USD $) | 3 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Apr. 30, 2015 | Nov. 17, 2014 | 31-May-13 |
Note 5 - Shareholders' Equity (Details) [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $50 | $30 | |||
Stock Repurchased During Period, Shares (in Shares) | 207,657 | 249,600 | |||
Treasury Stock, Value, Acquired, Cost Method | 3 | 3.1 | |||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $14.42 | $12.58 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 41.9 | ||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $0.06 | $0.05 | |||
Subsequent Event [Member] | |||||
Note 5 - Shareholders' Equity (Details) [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $0.06 | ||||
Dividends Payable, Current | $2.10 | ||||
Restricted Stock [Member] | |||||
Note 5 - Shareholders' Equity (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | 499,938 |
Note_5_Shareholders_Equity_Det1
Note 5 - Shareholders' Equity (Details) - Dividends Declared (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Dividend Declared 1 [Member] | ||
Dividends Payable [Line Items] | ||
Declariation Date | 13-Feb-15 | |
Dividend per Share | $0.06 | |
Record Date | 26-Feb-15 | |
Total Amount | $2,082 | |
Payment Date | 12-Mar-15 | |
Dividends Declared 2 [Member] | ||
Dividends Payable [Line Items] | ||
Declariation Date | 21-Feb-14 | |
Dividend per Share | $0.05 | |
Record Date | 13-Mar-14 | |
Total Amount | $1,798 | |
Payment Date | 27-Mar-14 |
Note_7_Segment_Information_Det
Note 7 - Segment Information (Details) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Note 7 - Segment Information (Details) [Line Items] | ||
Number of Operating Segments | 3 | |
Number of Reportable Segments | 2 | |
Entity Operated Units [Member] | Ruth's Chris Steak House [Member] | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Number of Restaurants | 66 | |
Management Agreement Operating Unit [Member] | Ruth's Chris Steak House [Member] | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Number of Restaurants | 1 | |
Franchised Units [Member] | Ruth's Chris Steak House [Member] | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Number of Restaurants | 77 | |
Ruth's Chris Steak House [Member] | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Number of Restaurants | 144 |
Note_7_Segment_Information_Det1
Note 7 - Segment Information (Details) - Segment Information, Operating Profit (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenues: | ||
Revenues | $97,344 | $90,354 |
Segment profits: | ||
Segment profits | 26,814 | 24,094 |
Unallocated operating income | 16,208 | 13,954 |
Marketing and advertising expenses | -1,593 | -1,746 |
General and administrative costs | -6,447 | -6,225 |
Depreciation and amortization expenses | -2,919 | -2,510 |
Pre-opening costs | -376 | -409 |
Interest expense, net | -226 | -287 |
Other income | 15 | 9 |
Income from continuing operations before income tax expense | 15,997 | 13,676 |
Capital expenditures: | ||
Capital expenditures | 4,621 | 3,330 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Revenues: | ||
Revenues | 92,594 | 85,568 |
Segment profits: | ||
Segment profits | 22,793 | 20,058 |
Capital expenditures: | ||
Capital expenditures | 4,309 | 2,564 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Revenues: | ||
Revenues | 4,021 | 4,036 |
Segment profits: | ||
Segment profits | 4,021 | 4,036 |
Segment Reconciling Items [Member] | ||
Revenues: | ||
Revenues | 729 | 750 |
Segment profits: | ||
Unallocated operating income | 729 | 750 |
Corporate, Non-Segment [Member] | ||
Capital expenditures: | ||
Capital expenditures | 87 | 488 |
Mitchell's Restaurants [Member] | ||
Capital expenditures: | ||
Capital expenditures | $225 | $278 |
Note_7_Segment_Information_Det2
Note 7 - Segment Information (Details) - Segment Information, Assets (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Total assets: | ||
Assets | $189,979 | $218,567 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Total assets: | ||
Assets | 151,628 | 155,757 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Total assets: | ||
Assets | 1,462 | 2,151 |
Corporate, Non-Segment [Member] | ||
Total assets: | ||
Assets | 21,506 | 16,711 |
Deferred income taxes - unallocated | 15,133 | 28,829 |
Mitchell's Restaurants [Member] | ||
Total assets: | ||
Assets | $250 | $15,119 |
Note_8_StockBased_Employee_Com1
Note 8 - Stock-Based Employee Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,630,809 | |
Allocated Share-based Compensation Expense (in Dollars) | $747 | $534 |
Restricted Stock [Member] | Long-term Equity Incentive Plan 2005 [Member] | Pro Rata Through March 9, 2018 [Member] | ||
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock [Member] | Long-term Equity Incentive Plan 2005 [Member] | Pro Rata Through March 9, 2017 [Member] | ||
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Restricted Stock [Member] | ||
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 499,938 | |
Long-term Equity Incentive Plan 2005 [Member] | Pro Rata Through March 9, 2018 [Member] | ||
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 104,567 | |
Long-term Equity Incentive Plan 2005 [Member] | Pro Rata Through March 9, 2017 [Member] | ||
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 54,095 | |
Long-term Equity Incentive Plan 2005 [Member] | ||
Note 8 - Stock-Based Employee Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 385,712 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 499,938 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 158,662 |
Note_9_Income_Taxes_Details_Re
Note 9 - Income Taxes (Details) - Reconciliation of the U.S. Statutory Rate to the Effective Rate | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Reconciliation of the U.S. Statutory Rate to the Effective Rate [Abstract] | ||
Income tax expense at statutory rates | 35.00% | 35.00% |
Increase (decrease) in income taxes resulting from: | ||
State income taxes, net of federal benefit | 4.50% | 4.50% |
Federal employment tax credits | -7.10% | -6.90% |
Other | 0.30% | 1.70% |
Effective tax rate | 32.70% | 34.30% |
Note_9_Income_Taxes_Details_In
Note 9 - Income Taxes (Details) - Income Tax Reconciliation Applicable to Discontinued Operations (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Note 9 - Income Taxes (Details) - Income Tax Reconciliation Applicable to Discontinued Operations [Line Items] | ||
Effective tax rate | 32.70% | 34.30% |
$5,229 | $4,686 | |
Discontinued Operations [Member] | ||
Note 9 - Income Taxes (Details) - Income Tax Reconciliation Applicable to Discontinued Operations [Line Items] | ||
Income tax expense at statutory rates | -228 | -180 |
Effective tax rate | 45.30% | 75.60% |
State income taxes, net of federal benefit | -29 | -23 |
Other, primarily federal FICA tip credit net benefit | -38 | -185 |
($295) | ($388) |
Note_10_Earnings_Per_Share_Det
Note 10 - Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 66,069 | 138,729 |
Weighted Average Exercise Prices Anti Dilutive Stock Options | $18.71 | $18.69 |
Note_10_Earnings_Per_Share_Det1
Note 10 - Earnings Per Share (Details) - Computation of Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Computation of Basic and Diluted Earnings Per Share [Abstract] | ||
Income from continuing operations (in Dollars) | $10,768 | $8,990 |
Loss from discontinued operations, net of income taxes (in Dollars) | -357 | -125 |
Net income (in Dollars) | $10,411 | $8,865 |
Shares: | ||
Weighted average number of common shares outstanding - basic (in Shares) | 34,216,357 | 35,094,652 |
Weighted average number of common shares outstanding - diluted (in Shares) | 34,515,515 | 35,822,458 |
Basic earnings (loss) per common share: | ||
Continuing operations | $0.31 | $0.25 |
Discontinued operations | ($0.01) | $0 |
Basic earnings per common share | $0.30 | $0.25 |
Diluted earnings (loss) per common share: | ||
Continuing operations | $0.31 | $0.25 |
Discontinued operations | ($0.01) | $0 |
Diluted earnings per common share | $0.30 | $0.25 |
Note_11_Commitments_and_Contin1
Note 11 - Commitments and Contingencies (Details) (USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jun. 28, 2013 |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Damages Sought, Value | $30 |