EXHIBIT 99.1
From: SANFORD TELLER COMMUNICATIONS
1365 York Avenue [GRAPHIC OMITTED]
New York, New York 10021
(212) 717-0332
For: MORTON'S RESTAURANT GROUP, INC. FOR IMMEDIATE RELEASE
325 North LaSalle Street ---------------------
Chicago, Illinois 60610
(312) 923-0030
www.mortons.com
March 7, 2006
Contact: RONALD M. DINELLA, SENIOR VICE PRESIDENT, CHIEF FINANCIAL OFFICER,
MORTON'S RESTAURANT GROUP, INC.
MORTON'S RESTAURANT GROUP, INC. REPORTS RESULTS FOR FISCAL 2005 FOURTH QUARTER
AND FOR THE FISCAL 2005 YEAR ENDED JANUARY 1, 2006
Chicago, IL. March 7, 2006... Morton's Restaurant Group, Inc. (NYSE:MRT)
today reported unaudited financial results for its 2005 fiscal fourth quarter
and its fiscal year ended January 1, 2006.
Highlights for the fourth quarter of fiscal 2005 as compared to the fourth
quarter of fiscal 2004 were:
o Revenues increased 9.0% to $83.6 million.
o Comparable restaurant revenues increased 2.9%.
o After a $6.6 million pre-tax charge relating to the separation
agreement with the Company's former President and Chief Executive
Officer, the Company reported a net loss of $0.7 million compared to
net income of $3.8 million for 2004. Fourth quarter 2004 results
included pre-tax insurance benefits of $2.8 million for business
interruption coverage and a $1.0 million gain on insurance proceeds,
related to the September 2001 closing of the Morton's Steakhouse which
was located in a building damaged by the World Trade Center attacks.
Highlights for fiscal year 2005 as compared to fiscal year 2004 were:
o Revenues increased 8.8% to $300.7 million.
o Comparable restaurant revenues increased 2.5%.
o After a $6.6 million pre-tax charge relating to the separation agreement
agreement with the Company's former President and Chief Executive
Officer, the Company reported net income of $0.7 million compared to
$1.7 million for 2004. Fiscal 2004 results included pre-tax insurance
benefits of $2.8 million for business interruption coverage and a $1.0 million
gain on insurance proceeds, related to the September 2001 closing of the
Morton's Steakhouse which was located in a building damaged by the World Trade
Center attacks.
Thomas J. Baldwin, Chairman, Chief Executive Officer and President of Morton's
Restaurant Group, Inc. said: "We are very pleased to report that 2005 was a year
of continued growth and expansion for Morton's, with strong record-setting
revenues of more than $300 million, up 8.8% over fiscal 2004. We opened four new
Morton's Steakhouses during 2005, giving us a total of 69 Morton's, all
company-owned and operated."
FOURTH QUARTER OF FISCAL 2005 RESULTS
Revenues for the fourth quarter of fiscal 2005 increased 9.0% to $83.6 million
from $76.7 million for the fourth quarter of fiscal 2004. The growth in
revenues is attributable to a 2.9% increase in comparable restaurant revenues
(13 weeks to 13 weeks) and revenues from five new restaurants (four opened in
fiscal 2005 and one in fiscal 2004).
Food and beverage costs increased $1.6 million, to $27.3 million (32.6% of
revenue) for the fourth quarter of fiscal 2005 from $25.7 million (33.5% of
revenues) for the fourth quarter of fiscal 2004.
Restaurant operating expenses, which include labor, occupancy and other
operating expenses, increased $5.3 million, or 16.9%, to $36.9 million (44.1% of
revenues), for the fourth quarter of fiscal 2005 from the 2004 fourth quarter of
$31.5 million (41.1% of revenues). Included in fiscal 2004 restaurant operating
expenses are insurance benefits of $2.8 million (3.7% of revenues) for business
interruption coverage related to the September 2001 closing of the Morton's
Steakhouse which was located in a building damaged by the World Trade Center
attacks.
Management fee paid to related party was $0.7 million for the fourth quarter of
2005 and 2004. The related management agreement was terminated in connection
with the Company's Initial Public Offering ("IPO") on February 9, 2006.
Interest expense was $2.8 million for the fourth quarter of 2005 and 2004. This
interest expense primarily related to the Company's 7.5% senior secured notes.
We expect interest expense to decrease, as proceeds from the IPO were used to
reduce debt.
After a $6.6 million pre-tax charge relating to the separation agreement with
the Company's former President and Chief Executive Officer, the Company reported
a net loss of $0.7 million compared to net income of $3.8 million in 2004.
Fourth quarter 2004 results included pre-tax insurance benefits of $2.8 million
for business interruption coverage and a $1.0 million gain on insurance
proceeds, related to the September 2001 closing of the Morton's Steakhouse which
was located in a building damaged by the World Trade Center attacks.
FISCAL YEAR 2005 FINANCIAL RESULTS
Revenues for fiscal 2005 increased 8.8% to $300.7 million from $276.3 million
for fiscal year 2004. The growth in revenues is attributable to a 2.5% increase
in comparable restaurant revenues (52 weeks to 52 weeks) and revenues due to the
opening of five new restaurants (four in fiscal 2005 and one in fiscal 2004).
Management fee paid to related party, was $2.8 million for fiscal 2005 and
fiscal 2004. The related management agreement was terminated in connection with
the Company's IPO.
Interest expense was $10.9 million for fiscal 2005 and $11.5 million for fiscal
2004. This interest expense primarily related to the Company's 7.5% senior
secured notes. We expect interest expense to decrease, as proceeds from the IPO
were used to reduce debt.
After a $6.6 million pre-tax charge relating to the separation agreement with
the Company's former President and Chief Executive Officer, the Company reported
net income of $0.7 million in fiscal 2005 compared to $1.7 million in fiscal
2004. Fiscal 2004 results included pre-tax insurance benefits of $2.8 million
for business interruption coverage and a $1.0 million gain on insurance
proceeds, related to the September 2001 closing of the Morton's Steakhouse which
was located in a building damaged by the World Trade Center attacks.
Details of Morton's reported results are included in the financial schedules
that are a part of this release.
RESTAURANT DEVELOPMENT
The Company has executed leases to open new Morton's Steakhouse
restaurants in Anaheim, CA; Coral Gables, FL; Ft. Lauderdale, FL; Houston, TX;
Northbrook, IL and Troy, MI.
RECENT EVENTS
On February 9, 2006, Morton's Restaurant Group, Inc filed a final
prospectus with the SEC and its stock started trading on the New York Stock
Exchange ("NYSE") under the ticker symbol "MRT".
CONFERENCE CALL
Morton's Restaurant Group, Inc. (NYSE: MRT) has scheduled a
conference call and webcast for investors at 5:00 p.m. ET today to discuss these
results. Details of the conference call are as follows:
Date: Tuesday, March 7, 2006
Time: 5:00 p.m. ET (please dial in by 4:45 p.m.)
Dial-In #: (800) 819-9193 U.S. & Canada
(913) 981-4911 International
Alternatively, the conference call will be webcast at WWW.MORTONS.COM under the
"investor relations" tab.
ABOUT THE COMPANY
Morton's Restaurant Group, Inc. is the world's largest owner and operator of
company-owned upscale steakhouse restaurants. Morton's Steakhouses have remained
true to our founders' original vision of combining generous portions of high
quality food prepared to exacting standards with exceptional service in an
enjoyable dining environment.
As of January 1, 2006, the Company owned and operated 69 Morton's Steakhouses
located in 60 cities across 28 states and four international locations (Toronto,
Vancouver, Singapore and Hong Kong) and 4 Bertolini's Authentic
Trattoria restaurants.
FORWARD-LOOKING STATEMENTS
EXCEPT FOR THE HISTORICAL INFORMATION CONTAINED IN THIS NEWS RELEASE, THE
MATTERS ADDRESSED ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE CERTAIN RISKS AND
UNCERTAINTIES, INCLUDING, BUT NOT LIMITED TO, RISKS OF THE RESTAURANT INDUSTRY,
INCLUDING A HIGHLY COMPETITIVE INDUSTRY WITH MANY WELL-ESTABLISHED COMPETITORS
WITH GREATER FINANCIAL AND OTHER RESOURCES THAN THE COMPANY, THE IMPACT OF
CHANGES IN CONSUMER TASTES, LOCAL, REGIONAL AND NATIONAL ECONOMIC AND MARKET
CONDITIONS, RESTAURANT PROFITABILITY LEVELS, EXPANSION PLANS, DEMOGRAPHIC
TRENDS, TRAFFIC PATTERNS, EMPLOYEE AVAILABILITY, BENEFITS AND COST INCREASES,
PRODUCT SAFETY AND AVAILABILITY, GOVERNMENT REGULATION, THE COMPANY'S ABILITY TO
MAINTAIN ADEQUATE FINANCING FACILITIES AND OTHER RISKS DETAILED FROM TIME TO
TIME IN THE COMPANY'S REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
YOU SHOULD BE AWARE THAT THE COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. THE COMPANY ASSUMES NO
OBLIGATION TO UPDATE THE FORWARD-LOOKING INFORMATION.
# # #
Morton's Restaurant Group, Inc.
Consolidated Statements of Operations - Unaudited
(Amounts in thousands, except per share and restaurant data)
Fourth Quarter Ended Fiscal Year Ended
----------------------- -----------------------
January 1, January 2, January 1, January 2,
2006 2005 2006 2005
---------- --------- ---------- ----------
Revenues $ 83,568 $ 76,653 $ 300,690 $ 276,334
Food and beverage costs 27,259 25,656 99,587 93,222
Restaurant operating expenses 36,888 31,542 140,998 127,000
Pre-opening costs 243 506 2,293 1,059
Depreciation and amortization 2,368 1,670 7,695 6,435
General and administrative expenses 6,212 4,938 22,643 18,949
Marketing and promotional expenses 1,390 1,471 5,472 8,472
Employee separation charge 6,625 - 6,625 -
Management fee paid to related party 700 700 2,800 2,800
---------- --------- --------- ----------
Operating income 1,883 10,170 12,577 18,397
Gain on insurance proceeds - (986) - (986)
Costs associated with the repayment of
certain debt - - 174 264
Gain on sale of investment - - (664) -
Interest expense, net 2,770 2,804 10,856 11,510
---------- --------- --------- ----------
(Loss) income before income taxes (887) 8,352 2,211 7,609
Income tax (benefit) expense (165) 4,537 1,516 5,864
---------- --------- --------- ----------
Net (loss) income $ (722) $ 3,815 $ 695 $ 1,745
========== ========= ========= ==========
Net (loss) income per share:
Basic $ (0.07) $ 0.38 $ 0.07 $ 0.17
Diluted $ (0.07) $ 0.38 $ 0.07 $ 0.17
Shares used in computing net (loss)
income per share:
Basic 10,098.5 10,098.5 10,098.5 10,098.5
Diluted 10,098.5 10,098.5 10,098.5 10,098.5
Number of restaurants at:
Beginning of period 73 69 69 68
End of period 73 69 73 69
Morton's Restaurant Group, Inc.
Margin Analysis - Unaudited
(In thousands)
Fourth Quarter Ended
-----------------------------------------------
January 1, 2006 January 2, 2005
---------------------- ---------------------
Revenues $ 83,568 100.0% $ 76,653 100.0%
Food and beverage costs 27,259 32.6% 25,656 33.5%
Restaurant operating expenses 36,888 44.1% 31,542(1) 41.1%(1)
Pre-opening costs 243 0.3% 506 0.7%
Depreciation and amortization 2,368 2.8% 1,670 2.2%
General and administrative expenses 6,212 7.4% 4,938 6.4%
Marketing and promotional expenses 1,390 1.7% 1,471 1.9%
Employee separation charge (2) 6,625(2) 7.9%(2) - 0.0%
Management fee paid to related party (3) 700(3) 0.8%(3) 700(3) 0.9%(3)
--------- --------
Operating income 1,883 2.3% 10,170 13.3%
Gain on insurance proceeds - 0.0% (986) (1.3)%
Interest expense, net (4) 2,770(4) 3.3%(4) 2,804(4) 3.7%(4)
---------- -------
(Loss) income before income taxes (887) (1.1%) 8,352 10.9%
Income tax (benefit) expense (165) (0.2%) 4,537 5.9%
---------- --------
Net (loss) income $ (722) (0.9%) $ 3,815 5.0%
========== ========
NOTES:
(1) The fourth quarter of fiscal 2004 includes $2.8 million (3.7% of 2004
fourth quarter revenues) for business interruption insurance benefits
related to the September 2001 closing of the Morton's Steakhouse which was
located in a building damaged by the World Trade Center attacks.
(2) Represents 2005 fourth quarter charge relating to the separation agreement
executed with the Company's former President and Chief Executive Officer.
(3) The related management agreement was terminated in conjunction with the
Company's IPO on February 9, 2006.
(4) This interest expense primarily related to the Company's 7.5% senior
secured notes. We expect interest expense to decrease, as proceeds from the
IPO were used to reduce debt.
Morton's Restaurant Group, Inc.
Margin Analysis - Unaudited
(In thousands)
Fiscal Year Ended
-----------------------------------------------
January 1, 2006 January 2, 2005
---------------------- ---------------------
Revenues $300,690 100.0% $276,334 100.0%
Food and beverage costs 99,587 33.1% 93,222 33.7%
Restaurant operating expenses(1) 140,998 46.9% 127,000(1) 46.0%(1)
Pre-opening costs 2,293 0.8% 1,059 0.4%
Depreciation and amortization 7,695 2.6% 6,435 2.3%
General and administrative expenses 22,643 7.5% 18,949 6.9%
Marketing and promotional expenses 5,472 1.8% 8,472 3.1%
Employee separation charge (2) 6,625(2) 2.2%(2) - 0.0%
Management fee paid to related party (3) 2,800(3) 0.9%(3) 2,800(3) 1.0%(3)
---------- ---------
Operating income 12,577 4.2% 18,397 6.7%
Gain on insurance proceeds - 0.0% (986) (0.4%)
Costs associated with the
repayment of certain debt 174 0.1% 264 0.1%
Gain on sale of investment (664) (0.2%) - 0.0%
Interest expense, net (4) 10,856(4) 3.6% 11,510(4) 4.2%(4)
---------- ---------
Income before income taxes 2,211 0.7% 7,609 2.8%
Income tax expense 1,516 0.5% 5,864 2.1%
---------- --------
Net income $ 695 0.2% $ 1,745 0.6%
========== =========
NOTES:
(1) Fiscal 2004 includes $2.8 million (1.0% of fiscal 2004 revenues) for
business interruption insurance benefits related to the September 2001
closing of the Morton's Steakhouse which was located in a building damaged
by the World Trade Center attacks.
(2) Represents 2005 fourth quarter charge relating to the separation agreement
executed with the Company's former President and Chief Executive Officer.
(3) The related management agreement was terminated in conjunction with the
Company's IPO on February 9, 2006.
(4) This interest expense primarily related to the Company's 7.5% senior
secured notes. We expect interest expense to decrease, as proceeds from the
IPO were used to reduce debt.