Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 27, 2016 | Apr. 25, 2016 | |
Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding (in shares) | 33,746,199 | |
Unvested Restricted Stock [Member] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,148,170 | |
Entity Registrant Name | Ruths Hospitality Group, Inc. | |
Entity Central Index Key | 1,324,272 | |
Trading Symbol | ruth | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Mar. 27, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 |
Franchise Rights [Member] | ||
Current assets: | ||
Finite-lived intangible assets | $ 32,200 | $ 32,200 |
Other Intangible Assets [Member] | ||
Current assets: | ||
Finite-lived intangible assets | 2,989 | 3,011 |
Cash and cash equivalents | 2,661 | 3,095 |
Accounts receivable, less allowance for doubtful accounts 2016 - $736; 2015 - $732 | 9,922 | 18,501 |
Inventory | $ 7,511 | 7,479 |
Assets held for sale | 250 | |
Prepaid expenses and other | $ 1,987 | 1,259 |
Total current assets | 22,081 | 30,584 |
Property and equipment, net of accumulated depreciation 2016 - $127,769; 2015 - $125,362 | 90,717 | 87,984 |
Goodwill | 24,293 | 24,293 |
Deferred income taxes | 16,385 | 19,309 |
Other assets | 1,109 | 1,216 |
Total assets | 189,774 | 198,597 |
Current liabilities: | ||
Accounts payable | 9,405 | 10,018 |
Accrued payroll | 11,397 | 17,064 |
Accrued expenses | 7,892 | 9,280 |
Deferred revenue | 28,799 | $ 35,202 |
Current portion of long-term debt | 8,000 | |
Other current liabilities | 5,932 | $ 6,308 |
Total current liabilities | $ 71,425 | $ 77,872 |
Long-term debt | ||
Deferred rent | $ 20,730 | $ 20,275 |
Other liabilities | 2,488 | 2,548 |
Total liabilities | $ 94,643 | $ 100,695 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 32,597,229 shares issued and outstanding at March 27, 2016, 33,145,687 shares issued and outstanding at December 27, 2015 | $ 326 | $ 331 |
Additional paid-in capital | 124,225 | 135,403 |
Accumulated deficit | $ (29,420) | $ (37,832) |
Treasury stock, at cost; 71,950 shares at March 27, 2016 and December 27, 2015 | ||
Total shareholders' equity | $ 95,131 | $ 97,902 |
Total liabilities and shareholders' equity | $ 189,774 | $ 198,597 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 218 | $ 218 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | 1,113 | 1,090 |
Allowance for doubtful accounts | 736 | 732 |
Property and equipment, accumulated depreciation | $ 127,769 | $ 125,362 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 32,597,229 | 33,145,687 |
Common stock, shares outstanding (in shares) | 32,597,229 | 33,145,687 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Revenues: | ||
Restaurant sales | $ 95,937 | $ 92,071 |
Franchise income | 4,501 | 4,021 |
Other operating income | 1,452 | 1,252 |
Total revenues | 101,890 | 97,344 |
Costs and expenses: | ||
Food and beverage costs | 28,445 | 28,100 |
Restaurant operating expenses | 43,922 | 41,701 |
Marketing and advertising | 1,970 | 1,593 |
General and administrative costs | 7,664 | 6,447 |
Depreciation and amortization expenses | 3,101 | 2,919 |
Pre-opening costs | 354 | 376 |
Total costs and expenses | 85,456 | 81,136 |
Operating income | 16,434 | 16,208 |
Other income (expense): | ||
Interest expense, net | (213) | (226) |
Other | 7 | 15 |
Income from continuing operations before income tax expense | 16,228 | 15,997 |
Income tax expense | 5,346 | 5,229 |
Income from continuing operations | 10,882 | 10,768 |
Loss from discontinued operations, net of income tax benefit: 2016 - $77; 2015 - $295 | (120) | (357) |
Net income | $ 10,762 | $ 10,411 |
Basic earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 0.33 | $ 0.31 |
Discontinued operations (in dollars per share) | (0.01) | |
Basic earnings per share (in dollars per share) | $ 0.33 | 0.30 |
Diluted earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 0.33 | 0.31 |
Discontinued operations (in dollars per share) | (0.01) | |
Diluted earnings per share (in dollars per share) | $ 0.33 | $ 0.30 |
Shares used in computing net income (loss) per common share: | ||
Basic (in shares) | 32,626,645 | 34,216,357 |
Diluted (in shares) | 33,073,660 | 34,515,515 |
Cash dividends declared per common share (in dollars per share) | $ 0.07 | $ 0.06 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Income tax benefit | $ 77 | $ 295 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 28, 2014 | 34,334 | 72 | |||
Balance at Dec. 28, 2014 | $ 343 | $ 155,455 | $ (59,487) | $ 96,311 | |
Net income | 10,411 | 10,411 | |||
Cash dividends | (2,082) | (2,082) | |||
Repurchase of common stock (in shares) | (208) | ||||
Repurchase of common stock | $ (2) | (2,991) | (2,993) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 215 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 2 | (824) | (822) | ||
Excess tax benefit from stock based compensation | 482 | 482 | |||
Stock-based compensation | 747 | 747 | |||
Balance (in shares) at Mar. 29, 2015 | 34,341 | 72 | |||
Balance at Mar. 29, 2015 | $ 343 | 152,869 | (51,158) | 102,054 | |
Balance (in shares) at Dec. 27, 2015 | 33,146 | 72 | |||
Balance at Dec. 27, 2015 | $ 331 | 135,403 | (37,832) | 97,902 | |
Net income | 10,762 | 10,762 | |||
Cash dividends | $ (2,350) | (2,350) | |||
Repurchase of common stock (in shares) | (732) | ||||
Repurchase of common stock | $ (7) | (11,660) | (11,667) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 183 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 2 | (1,207) | (1,205) | ||
Excess tax benefit from stock based compensation | 359 | 359 | |||
Stock-based compensation | 1,330 | 1,330 | |||
Balance (in shares) at Mar. 27, 2016 | 32,597 | 72 | |||
Balance at Mar. 27, 2016 | $ 326 | $ 124,225 | $ (29,420) | $ 95,131 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 10,762 | $ 10,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,101 | 2,919 |
Deferred income taxes | 2,924 | 13,696 |
Non-cash interest expense | 105 | 105 |
Stock-based compensation expense | 1,330 | 747 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,609 | (199) |
Inventories | (32) | 84 |
Prepaid expenses and other | (728) | (538) |
Other assets | 2 | 83 |
Accounts payable and accrued expenses | (8,108) | (11,498) |
Deferred revenue | (6,402) | (6,099) |
Deferred rent | 455 | 339 |
Other liabilities | 339 | (891) |
Net cash provided by operating activities | 12,357 | 9,159 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (6,148) | $ (4,621) |
Proceeds from sale of intangible asset | $ 220 | |
Proceeds from sale of the Mitchell's Restaurants | $ 10,000 | |
Net cash provided by (used in) investing activities | $ (5,928) | 5,379 |
Cash flows from financing activities: | ||
Principal borrowings on long-term debt | 14,000 | 12,000 |
Principal repayments on long-term debt | (6,000) | (22,000) |
Repurchase of common stock | (11,667) | (2,993) |
Tax payments from the vesting of restricted stock and option exercises | (1,272) | (1,015) |
Excess tax benefits from stock compensation | 359 | 482 |
Proceeds from the exercise of stock options | 67 | 193 |
Cash dividend payments | (2,350) | (2,082) |
Net cash used in financing activities | (6,863) | (15,415) |
Net decrease in cash and cash equivalents | (434) | (877) |
Cash and cash equivalents at beginning of period | 3,095 | 4,301 |
Cash and cash equivalents at end of period | 2,661 | 3,424 |
Supplemental disclosures of cash flow information: | ||
Interest, net of capitalized interest | 108 | 133 |
Income taxes | 1,294 | 45 |
Noncash investing and financing activities: | ||
Accrued acquisition of property and equipment | $ 972 | $ 431 |
Note 1 - The Company and Basis
Note 1 - The Company and Basis of Presentation | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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 27, 2016 and December 27, 2015 and for the thirteen week periods ended March 27, 2016 and March 29, 2015 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). The condensed 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 27, 2016, there were 147 Ruth’s Chris Steak House restaurants, including 66 Company-owned restaurants, one restaurant operating under a management agreement and 80 franchisee-owned restaurants, including 20 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Panama, Singapore, Taiwan and the United Arab Emirates. All Company owned restaurants are located in the United States. A new franchisee-owned Ruth’s Chris Steak House restaurant opened in Jakarta, Indonesia in February 2016. A Company-owned Ruth’s Chris Steak House in Columbus, OH closed in February 2016. The Company previously 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. 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 27, 2016 and March 29, 2015 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 U.S. generally accepted accounting principles 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 27, 2015. The Company operates on a 52- or 53-week fiscal year ending on the last Sunday in December. The fiscal quarters ended March 27, 2016 and March 29, 2015 each contained thirteen weeks and are referred to herein as the first quarter of fiscal year 2016 and the first quarter of fiscal year 2015, respectively. Fiscal years 2016 and 2015 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, and obligations related to gift cards, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. 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 was originally effective for interim and annual periods in fiscal years beginning after December 15, 2016. In July 2015, the FASB affirmed its proposal for a one year deferral of the effective date. 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. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330).” The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. This update is effective for annual and interim periods beginning after December 15, 2018, which will require us to adopt these provisions in the first quarter of fiscal 2019 using a modified retrospective approach. Early adoption is permitted. We have not yet selected a transition date nor have we determined the effect of the standard on our ongoing financial reporting. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718).” This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2017. This guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We have not yet selected a transition date nor have we determined the effect of the standard on our ongoing financial reporting. |
Note 2 - Mitchell's Restaurants
Note 2 - Mitchell's Restaurants | 3 Months Ended |
Mar. 27, 2016 | |
Mitchells Restaurants [Member] | |
Notes to Financial Statements | |
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 results of operations, impairment charges and loss on assets held for sale have been classified as discontinued operations in the consolidated statements of operations 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 was limited to the provision of transition services for 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 made customary representations and warranties and agreed to customary covenants relating to the sale of the Mitchell’s Restaurants, including covenants that 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 agreed to indemnify each other for losses arising from certain breaches of the Agreement and for certain other liabilities. The Company guaranteed Landry’s lease obligations aggregating $37.2 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. |
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, 2014, 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 closed after December 28, 2014 are not 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 thirteen week periods ended March 27, 2016 and March 29, 2015, 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 operations for all periods presented. Loss from discontinued operations, net of income tax benefit is comprised of the following (in thousands): 13 Weeks Ended March 27, 2016 March 29, 2015 Revenues Mitchell's Restaurants $ - $ 4,343 Other Restaurants - - Total revenues - 4,343 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 29 4,922 Other Restaurants 168 73 Total costs and expenses 197 4,995 Loss before income taxes (197 ) (652 ) Income tax benefit (77 ) (295 ) Loss from discontinued operations, net of income taxes $ (120 ) $ (357 ) 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. 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 2016. |
Note 3 - Discontinued Operation
Note 3 - Discontinued Operations | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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, 2014, 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 closed after December 28, 2014 are not 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 thirteen week periods ended March 27, 2016 and March 29, 2015, 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 operations for all periods presented. Loss from discontinued operations, net of income tax benefit is comprised of the following (in thousands): 13 Weeks Ended March 27, 2016 March 29, 2015 Revenues Mitchell's Restaurants $ - $ 4,343 Other Restaurants - - Total revenues - 4,343 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 29 4,922 Other Restaurants 168 73 Total costs and expenses 197 4,995 Loss before income taxes (197 ) (652 ) Income tax benefit (77 ) (295 ) Loss from discontinued operations, net of income taxes $ (120 ) $ (357 ) 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. 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 2016. |
Note 4 - Long-term Debt
Note 4 - Long-term Debt | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (4) Long-term Debt Long-term debt consists of the following (in thousands): March 27, 2016 December 27, 2015 Senior Credit Facility: Revolving credit facility $ 8,000 $ - Less current maturities 8,000 - $ - $ - As of March 27, 2016, the Company had $8.0 million of outstanding indebtedness under its senior credit facility with approximately $87.8 million of borrowings available, net of outstanding letters of credit of approximately $4.2 million. As of March 27, 2016, the weighted average interest rate on the Company’s outstanding indebtedness was 2.5%. In addition, the fees on the Company’s unused senior credit facility and outstanding letters of credit were 0.2% and 2.1%, respectively. 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 has a maturity date of February 14, 2017. 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; $73.0 million of such payments had been made as of March 27, 2016. 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 27, 2016, 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. 27, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | (5) Shareholders’ Equity In April 2016, we announced that our Board of Directors approved a new share repurchase program under which the Company is authorized to repurchase up to $60 million of outstanding common stock from time to time. The new share repurchase program replaces the previous share repurchase program announced in November 2014, which has been terminated. During the first thirteen weeks of fiscal year 2016, 731,643 shares were repurchased under the old program at an aggregate cost of $11.7 million, or an average cost of $15.92 per share. Share repurchases 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 2016: February 12, 2016 $ 0.07 February 25, 2016 $ 2,350 March 10, 2016 Fiscal Year 2015: February 13, 2015 $ 0.06 February 26, 2015 $ 2,082 March 12, 2015 Subsequent to the end of the first quarter of fiscal year 2016, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per common and restricted share, or approximately $2.4 million in the aggregate based on the number of shares currently outstanding, payable on May 26, 2016 to stockholders of record as of the close of business on May 12, 2016. Outstanding unvested restricted stock is not included in common stock outstanding amounts. Restricted stock outstanding as of March 27, 2016 aggregated 1,148,170 shares. |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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 27, 2016 and December 27, 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). As of March 27, 2016 and December 27, 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. 27, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (7) Segment Information The Company has two reportable segments – the Company-owned steakhouse segment and the franchise operations segment. 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 27, 2016, (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 80 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 27, 2016 March 29, 2015 Revenues: Company-owned steakhouse restaurants $ 96,515 $ 92,594 Franchise operations 4,501 4,021 Unallocated other revenue and revenue discounts 874 729 Total revenues $ 101,890 $ 97,344 Segment profits: Company-owned steakhouse restaurants $ 24,148 $ 22,793 Franchise operations 4,501 4,021 Total segment profit 28,649 26,814 Unallocated operating income 874 729 Marketing and advertising expenses (1,970 ) (1,593 ) General and administrative costs (7,664 ) (6,447 ) Depreciation and amortization expenses (3,101 ) (2,919 ) Pre-opening costs (354 ) (376 ) Interest expense, net (213 ) (226 ) Other income 7 15 Income from continuing operations before income tax expense $ 16,228 $ 15,997 Capital expenditures: Company-owned steakhouse restaurants $ 5,996 $ 4,309 Corporate assets 152 87 Mitchell's Restaurants - 225 Total capital expenditures $ 6,148 $ 4,621 March 27, 2016 December 27, 2015 Total assets: Company-owned steakhouse restaurants $ 165,691 $ 168,766 Franchise operations 1,867 2,444 Corporate assets - unallocated 5,831 7,828 Deferred income taxes - unallocated 16,385 19,309 Mitchell's Restaurants - 250 Total assets $ 189,774 $ 198,597 |
Note 8 - Stock-based Employee C
Note 8 - Stock-based Employee Compensation | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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 27, 2016, there were 229,068 shares of common stock issuable upon exercise of currently outstanding options, 1,148,170 currently outstanding unvested restricted stock awards and 1,942,727 shares available for future grants. During the first thirteen weeks of fiscal year 2016, the Company issued 231,423 restricted stock awards to directors, officers and other employees of the Company. Of the 231,423 restricted stock awards issued during the first thirteen weeks of fiscal year 2016, 135,631 shares will vest pro rata over three annual service periods through March 3, 2019 and 95,792 will vest upon completion of a two-year service period ending on March 3, 2018. Total stock compensation expense recognized during the first thirteen weeks of fiscal years 2016 and 2015 was $1.3 million and $747 thousand, respectively. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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 27, 2016 March 29, 2015 Income tax expense at statutory rates 35.0 % 35.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.2 % 4.5 % Federal employment tax credits (6.8 %) (7.1 %) Other 0.5 % 0.3 % Effective tax rate 32.9 % 32.7 % 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 thirteen weeks of fiscal years 2016 and 2015 follows: 13 Weeks Ended March 27, 2016 March 29, 2015 Income tax expense at statutory rates $ (69 ) $ (228 ) Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit (8 ) (29 ) Other, primarily federal FICA tip credit net benefit 0 (38 ) $ (77 ) $ (295 ) Effective tax rate 39.1 % 45.3 % The Company files consolidated and separate income tax returns in the United States Federal jurisdiction and many state jurisdictions, respectively. With few exceptions, the Company is no longer subject to U.S. Federal or state income tax examinations for years before 2011. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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 27, 2016 March 29, 2015 Income from continuing operations $ 10,882 $ 10,768 Loss from discontinued operations, net of income taxes (120 ) (357 ) Net income $ 10,762 $ 10,411 Shares: Weighted average number of common shares outstanding - basic 32,626,645 34,216,357 Weighted average number of common shares outstanding - diluted 33,073,660 34,515,515 Basic earnings (loss) per common share: Continuing operations $ 0.33 $ 0.31 Discontinued operations - (0.01 ) Basic earnings per common share $ 0.33 $ 0.30 Diluted earnings (loss) per common share: Continuing operations $ 0.33 $ 0.31 Discontinued operations - (0.01 ) Diluted earnings per common share $ 0.33 $ 0.30 Diluted earnings per share for the first quarters of fiscal year 2016 and 2015 excludes stock options and restricted shares of 24,829 and 66,069, 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 2016 and 2015 were $19.05 per share and $18.71 per share, respectively. |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2016 | |
Notes to Financial Statements | |
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 a qui tam 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. The complaint alleges that the Company and the other defendants intentionally failed to report and remit money with respect to unused gift cards to the State of Delaware under the Delaware Escheats Law, and knowingly made, used or caused to be made or used, false statements and records to conceal, avoid or decrease an obligation to pay or transmit such money to Delaware in violation of the Delaware False Claims and Reporting Act (DFCRA). The complaint further alleges that the amount of money that the Company should have escheated to Delaware is approximately $30 million. The complaint seeks monetary damages (including treble damages under the DFCRA), penalties, and attorneys’ fees and costs. The case was unsealed in March 2014, at which time the court also granted the State of Delaware’s motion to intervene. All parties to the case are now in the process of seeking discovery. The Company believes it is in compliance with the Delaware Escheats Law and has not violated the DFCRA. The Company has been vigorously defending the action, and intends to continue to do so. 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. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 27, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the Company) as of March 27, 2016 and December 27, 2015 and for the thirteen week periods ended March 27, 2016 and March 29, 2015 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). The condensed 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 27, 2016, there were 147 Ruth’s Chris Steak House restaurants, including 66 Company-owned restaurants, one restaurant operating under a management agreement and 80 franchisee-owned restaurants, including 20 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Panama, Singapore, Taiwan and the United Arab Emirates. All Company owned restaurants are located in the United States. A new franchisee-owned Ruth’s Chris Steak House restaurant opened in Jakarta, Indonesia in February 2016. A Company-owned Ruth’s Chris Steak House in Columbus, OH closed in February 2016. The Company previously 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. 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 27, 2016 and March 29, 2015 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 U.S. generally accepted accounting principles 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 27, 2015. The Company operates on a 52- or 53-week fiscal year ending on the last Sunday in December. The fiscal quarters ended March 27, 2016 and March 29, 2015 each contained thirteen weeks and are referred to herein as the first quarter of fiscal year 2016 and the first quarter of fiscal year 2015, respectively. Fiscal years 2016 and 2015 are both 52-week years. |
Use of Estimates, Policy [Policy Text Block] | 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, and obligations related to gift cards, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | 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 was originally effective for interim and annual periods in fiscal years beginning after December 15, 2016. In July 2015, the FASB affirmed its proposal for a one year deferral of the effective date. 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. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330).” The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. This update is effective for annual and interim periods beginning after December 15, 2018, which will require us to adopt these provisions in the first quarter of fiscal 2019 using a modified retrospective approach. Early adoption is permitted. We have not yet selected a transition date nor have we determined the effect of the standard on our ongoing financial reporting. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718).” This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2017. This guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We have not yet selected a transition date nor have we determined the effect of the standard on our ongoing financial reporting. |
Note 3 - Discontinued Operati20
Note 3 - Discontinued Operations (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | 13 Weeks Ended March 27, 2016 March 29, 2015 Revenues Mitchell's Restaurants $ - $ 4,343 Other Restaurants - - Total revenues - 4,343 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 29 4,922 Other Restaurants 168 73 Total costs and expenses 197 4,995 Loss before income taxes (197 ) (652 ) Income tax benefit (77 ) (295 ) Loss from discontinued operations, net of income taxes $ (120 ) $ (357 ) |
Note 4 - Long-term Debt (Tables
Note 4 - Long-term Debt (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | March 27, 2016 December 27, 2015 Senior Credit Facility: Revolving credit facility $ 8,000 $ - Less current maturities 8,000 - $ - $ - |
Note 5 - Shareholders' Equity (
Note 5 - Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2016: February 12, 2016 $ 0.07 February 25, 2016 $ 2,350 March 10, 2016 Fiscal Year 2015: February 13, 2015 $ 0.06 February 26, 2015 $ 2,082 March 12, 2015 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 13 Weeks Ended March 27, 2016 March 29, 2015 Revenues: Company-owned steakhouse restaurants $ 96,515 $ 92,594 Franchise operations 4,501 4,021 Unallocated other revenue and revenue discounts 874 729 Total revenues $ 101,890 $ 97,344 Segment profits: Company-owned steakhouse restaurants $ 24,148 $ 22,793 Franchise operations 4,501 4,021 Total segment profit 28,649 26,814 Unallocated operating income 874 729 Marketing and advertising expenses (1,970 ) (1,593 ) General and administrative costs (7,664 ) (6,447 ) Depreciation and amortization expenses (3,101 ) (2,919 ) Pre-opening costs (354 ) (376 ) Interest expense, net (213 ) (226 ) Other income 7 15 Income from continuing operations before income tax expense $ 16,228 $ 15,997 Capital expenditures: Company-owned steakhouse restaurants $ 5,996 $ 4,309 Corporate assets 152 87 Mitchell's Restaurants - 225 Total capital expenditures $ 6,148 $ 4,621 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 27, 2016 December 27, 2015 Total assets: Company-owned steakhouse restaurants $ 165,691 $ 168,766 Franchise operations 1,867 2,444 Corporate assets - unallocated 5,831 7,828 Deferred income taxes - unallocated 16,385 19,309 Mitchell's Restaurants - 250 Total assets $ 189,774 $ 198,597 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Discontinued Operations [Member] | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 13 Weeks Ended March 27, 2016 March 29, 2015 Income tax expense at statutory rates $ (69 ) $ (228 ) Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit (8 ) (29 ) Other, primarily federal FICA tip credit net benefit 0 (38 ) $ (77 ) $ (295 ) Effective tax rate 39.1 % 45.3 % |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 13 Weeks Ended March 27, 2016 March 29, 2015 Income tax expense at statutory rates 35.0 % 35.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.2 % 4.5 % Federal employment tax credits (6.8 %) (7.1 %) Other 0.5 % 0.3 % Effective tax rate 32.9 % 32.7 % |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended March 27, 2016 March 29, 2015 Income from continuing operations $ 10,882 $ 10,768 Loss from discontinued operations, net of income taxes (120 ) (357 ) Net income $ 10,762 $ 10,411 Shares: Weighted average number of common shares outstanding - basic 32,626,645 34,216,357 Weighted average number of common shares outstanding - diluted 33,073,660 34,515,515 Basic earnings (loss) per common share: Continuing operations $ 0.33 $ 0.31 Discontinued operations - (0.01 ) Basic earnings per common share $ 0.33 $ 0.30 Diluted earnings (loss) per common share: Continuing operations $ 0.33 $ 0.31 Discontinued operations - (0.01 ) Diluted earnings per common share $ 0.33 $ 0.30 |
Note 1 - The Company and Basi26
Note 1 - The Company and Basis of Presentation (Details Textual) | 1 Months Ended | ||
Feb. 29, 2016 | Mar. 27, 2016 | Dec. 28, 2014 | |
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | Columbus, OH [Member] | |||
Number of Restaurants Closed During Period | 1 | ||
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | |||
Number of Restaurants | 66 | ||
Ruths Chris Steak House [Member] | Managed [Member] | |||
Number of Restaurants | 1 | ||
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | |||
Number of Restaurants | 20 | ||
Ruths Chris Steak House [Member] | Franchised Units [Member] | Jakarta, Indonesia [Member] | |||
Number of Restaurants Opened During Period | 1 | ||
Ruths Chris Steak House [Member] | Franchised Units [Member] | |||
Number of Restaurants | 80 | ||
Ruths Chris Steak House [Member] | |||
Number of Restaurants | 147 | ||
Mitchells Fish Market [Member] | Company-owned Fish Market Restaurants [Member] | |||
Number of Restaurants | 18 | ||
Camerons Mitchell Steak house [Member] | Company-owned Steakhouse Restaurants [Member] | |||
Number of Restaurants | 3 |
Note 2 - Mitchell's Restauran27
Note 2 - Mitchell's Restaurants (Details Textual) | 3 Months Ended | |||
Mar. 27, 2016USD ($) | Mar. 29, 2015USD ($) | Dec. 28, 2014USD ($) | Nov. 30, 2014USD ($) | |
Mitchells Restaurants [Member] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,000,000 | |||
Number of Restaurants | 21 | |||
General and Administrative Expense | $ 0 | |||
Interest Expense | $ 0 | |||
One of the Leases [Member] | ||||
Letters of Credit Outstanding, Amount | $ 250,000 | |||
Lease Obligations Guaranteed | 37,200,000 | |||
General and Administrative Expense | 7,664,000 | $ 6,447,000 | ||
Interest Expense | $ 213,000 | $ 226,000 |
Note 3 - Summary of Discontinue
Note 3 - Summary of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Mitchells Restaurants [Member] | ||
Revenues | $ 4,343 | |
Recurring costs and expenses | $ 29 | $ 4,922 |
Other Restaurants [Member] | ||
Revenues | ||
Recurring costs and expenses | $ 168 | $ 73 |
Revenues | 4,343 | |
Recurring costs and expenses | $ 197 | 4,995 |
Loss before income taxes | (197) | (652) |
Income tax benefit | (77) | (295) |
Loss from discontinued operations, net of income taxes | $ (120) | $ (357) |
Note 4 - Long-term Debt (Detail
Note 4 - Long-term Debt (Details Textual) $ in Millions | Feb. 14, 2012USD ($) | Mar. 27, 2016USD ($) |
Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Senior Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Senior Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Senior Credit Facility [Member] | ||
Long-term Line of Credit | $ 8 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 87.8 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
Letter of Credit [Member] | ||
Letters of Credit Outstanding, Amount | $ 4.2 | |
Long-term Debt, Weighted Average Interest Rate | 2.50% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 2.10% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | |
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 | $ 100 | |
Debt Covenant Limit Used for Cash Dividends and Repurchases of Common or Preferred Stock | $ 73 |
Note 4 - Summary of Long-term D
Note 4 - Summary of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 27, 2016 | Dec. 27, 2015 |
Revolving credit facility | $ 8 | |
Less current maturities | $ 8 | |
Note 5 - Shareholders' Equity31
Note 5 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | May. 12, 2016 | Mar. 27, 2016 | Mar. 29, 2015 | May. 26, 2016 | Apr. 30, 2016 |
Subsequent Event [Member] | The 2016 Share Repurchase Plan [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 60 | ||||
The 2014 Share Repurchase Plan [Member] | |||||
Stock Repurchased During Period, Shares | 731,643 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 11.7 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 15.92 | ||||
Scenario, Forecast [Member] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.07 | ||||
Dividends Payable, Current | $ 2.4 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,148,170 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.07 | $ 0.06 |
Note 5 - Dividends Declared (De
Note 5 - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 27, 2016 | Dec. 27, 2015 | |
Dividend Declared 1 [Member] | ||
Dividend Per Share (in dollars per share) | $ 0.07 | |
Record Date | Feb. 25, 2016 | |
Total Amount | $ 2,350 | |
Payment Date | Mar. 10, 2016 | |
Dividends Declared 2 [Member] | ||
Dividend Per Share (in dollars per share) | $ 0.06 | |
Record Date | Feb. 26, 2015 | |
Total Amount | $ 2,082 | |
Payment Date | Mar. 12, 2015 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 3 Months Ended |
Mar. 27, 2016 | |
Entity Operated Units [Member] | Ruths Chris Steak House [Member] | |
Number of Restaurants | 66 |
Entity Managed Units [Member] | Ruths Chris Steak House [Member] | |
Number of Restaurants | 1 |
Franchised Units [Member] | Ruths Chris Steak House [Member] | |
Number of Restaurants | 80 |
Ruths Chris Steak House [Member] | |
Number of Restaurants | 147 |
Number of Operating Segments | 2 |
Note 7 - Segment Information, O
Note 7 - Segment Information, Operating Profit (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Revenues: | ||
Revenues | $ 96,515 | $ 92,594 |
Segment profits: | ||
Gross profit | 24,148 | 22,793 |
Capital expenditures: | ||
Capital expenditure | 5,996 | 4,309 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Revenues: | ||
Revenues | 4,501 | 4,021 |
Segment profits: | ||
Gross profit | 4,501 | 4,021 |
Segment Reconciling Items [Member] | ||
Revenues: | ||
Revenues | 874 | 729 |
Segment profits: | ||
Gross profit | 28,649 | 26,814 |
Corporate, Non-Segment [Member] | ||
Capital expenditures: | ||
Capital expenditure | $ 152 | 87 |
Mitchells Restaurants [Member] | ||
Capital expenditures: | ||
Capital expenditure | 225 | |
Revenues | $ 101,890 | 97,344 |
Unallocated operating income | 874 | 729 |
Marketing and advertising expenses | (1,970) | (1,593) |
General and administrative costs | (7,664) | (6,447) |
Depreciation and amortization expenses | (3,101) | (2,919) |
Pre-opening costs | (354) | (376) |
Interest expense, net | (213) | (226) |
Other income | 7 | 15 |
Income from continuing operations before income tax expense | 16,228 | 15,997 |
Capital expenditure | $ 6,148 | $ 4,621 |
Note 7 - Segment Information, A
Note 7 - Segment Information, Assets (Details) - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Assets | $ 165,691 | $ 168,766 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Assets | 1,867 | 2,444 |
Corporate, Non-Segment [Member] | ||
Assets | 5,831 | 7,828 |
Deferred income taxes - unallocated | $ 16,385 | 19,309 |
Mitchells Restaurants [Member] | ||
Assets | 250 | |
Assets | $ 189,774 | $ 198,597 |
Note 8 - Stock-based Employee36
Note 8 - Stock-based Employee Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Long-term Equity Incentive Plan 2005 [Member] | Pro Rata Through March 3, 2019 [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Long-term Equity Incentive Plan 2005 [Member] | Pro Rata Through March 3, 2019 [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 135,631 | |
Long-term Equity Incentive Plan 2005 [Member] | Vest on March 3, 2018 [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Long-term Equity Incentive Plan 2005 [Member] | Vest on March 3, 2018 [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 95,792 | |
Long-term Equity Incentive Plan 2005 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 229,068 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,148,170 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,942,727 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 231,423 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,148,170 | |
Allocated Share-based Compensation Expense | $ 1.3 | $ 747 |
Note 9 - Reconciliation of the
Note 9 - Reconciliation of the U.S. Statutory Rate to the Effective Rate (Details) | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Income tax expense at statutory rates | 35.00% | 35.00% |
Increase (decrease) in income taxes resulting from: | ||
State income taxes, net of federal benefit | 4.20% | 4.50% |
Federal employment tax credits | (6.80%) | (7.10%) |
Other | 0.50% | 0.30% |
Effective tax rate | 32.90% | 32.70% |
Note 9 - Income Tax Reconciliat
Note 9 - Income Tax Reconciliation Applicable to Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Discontinued Operations [Member] | ||
Income tax expense at statutory rates | $ (69,000) | $ (228,000) |
State income taxes, net of federal benefit | (8,000) | (29,000) |
Other, primarily federal FICA tip credit net benefit | 0 | (38,000) |
$ (77,000) | $ (295,000) | |
Effective tax rate | 39.10% | 45.30% |
$ 5,346,000 | $ 5,229,000 | |
Effective tax rate | 32.90% | 32.70% |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,829 | 66,069 |
Weighted Average Exercise Prices Anti Dilutive Stock Options | $ 19.05 | $ 18.71 |
Note 10 - Computation of Basic
Note 10 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Income from continuing operations | $ 10,882 | $ 10,768 |
Loss from discontinued operations, net of income taxes | (120) | (357) |
Net income | $ 10,762 | $ 10,411 |
Shares used in computing net income (loss) per common share: | ||
Weighted average number of common shares outstanding - basic (in shares) | 32,626,645 | 34,216,357 |
Weighted average number of common shares outstanding - diluted (in shares) | 33,073,660 | 34,515,515 |
Basic earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 0.33 | $ 0.31 |
Discontinued operations (in dollars per share) | (0.01) | |
Basic earnings per common share (in dollars per share) | $ 0.33 | 0.30 |
Diluted earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 0.33 | 0.31 |
Discontinued operations (in dollars per share) | (0.01) | |
Diluted earnings per common share (in dollars per share) | $ 0.33 | $ 0.30 |
Note 11 - Commitments and Con41
Note 11 - Commitments and Contingencies (Details Textual) $ in Millions | 1 Months Ended | |
Jun. 30, 2013USD ($) | Mar. 27, 2016 | |
Loss Contingency, Damages Sought, Value | $ 30 | |
Number of Suppliers | 2 |