[MORTON'S LOGO]
From: Matthew J. Doherty
Public Relations
541 Sixth Street, Suite D
Oakmont, PA 15139
(412) 828-7319
For: MORTON'S RESTAURANT GROUP, INC. FOR IMMEDIATE RELEASE
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325 North LaSalle Street
Chicago, IL 60610
(312) 923-0030
www.mortons.com
January 9, 2008
Contact: RONALD M. DINELLA, SENIOR VICE PRESIDENT, CHIEF FINANCIAL OFFICER,
MORTON'S RESTAURANT GROUP, INC.
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(312) 923-0030
MORTON'S RESTAURANT GROUP, INC. UPDATES FOURTH QUARTER AND FISCAL 2007 FINANCIAL
GUIDANCE
CHICAGO, January 9, 2008 - Morton's Restaurant Group, Inc. (NYSE: MRT) today
updated its financial guidance for the fourth quarter and fiscal 2007. The
Company anticipates record revenues of approximately $100.4 million for the
fourth quarter ended December 30, 2007, compared with its previous guidance of
$101 million to $104 million. In fiscal 2006, the Company reported fourth
quarter revenues of $90.9 million. The Company anticipates a decline of
approximately 0.7% (Morton's -0.4%, Bertolini's -10.1%) in comparable restaurant
revenues for the fourth quarter, compared with previous guidance of a 2% to 3%
increase. For the fourth quarter of fiscal 2006, the Company reported comparable
restaurant revenues of 6.4% (Morton's + 6.7%, Bertolini's -2.4%). Due to the
timing of the fiscal 2007 year end, fourth quarter results for fiscal 2007
(ended December 30, 2007) do not include revenues from New Year's Eve, which
were included in the fourth quarter of fiscal 2006 (ended December 31, 2006).
Excluding the last day of both fiscal quarters, comparable restaurant revenues
would have increased 1.0% (Morton's +1.3%, Bertolini's -9.7%) for the fiscal
2007 fourth quarter.
Morton's revenues have been pressured by the challenging and uncertain
macroeconomic environment in the United States, and industry headwinds, which
resulted in weaker guest traffic throughout the industry. As the Company
previously announced, 2007 revenues and costs were also affected by delays in
opening several new restaurants, due to construction and permitting delays.
Negative comparable restaurant revenues adversely impacted earnings due to the
deleveraging on the fixed cost base. As a result of these factors, the Company
expects to report net income per diluted share for the fourth quarter of $0.36
to $0.39, which is below its earlier guidance of $0.46 to $0.48, and above the
fourth quarter of fiscal 2006 reported net income of $0.33 per diluted share.
FISCAL YEAR 2007 GUIDANCE
Based on its revised fourth quarter expectations, the Company anticipates fiscal
2007 revenues of approximately $353.8 million, an increase of 9.9% from revenues
of $322.0 million in fiscal year 2006. The Company's previous guidance was
revenues of $354 million to $357 million for fiscal 2007. The Company also
anticipates comparable restaurant revenue growth of approximately 2.4% (Morton's
+2.6%, Bertolini's -5.7%) for fiscal year 2007. The Company's previous
comparable restaurant revenue growth guidance was 2.5% to 3.5%. The Company
expects to report net income per diluted share for fiscal 2007 of $0.75 to
$0.78, which is below its earlier guidance of $0.85 to $0.87. Fiscal 2007 does
not include revenue from New Year's Eve, which was included in fiscal 2006. The
guidance contemplates that the Company's 2007 effective income tax rate will
approximate 28%.
"Despite the slowing U.S. economy, Morton's expects to report record revenues
for the fourth quarter and for fiscal 2007," said Thomas J. Baldwin, chairman
and chief executive officer of Morton's Restaurant Group. "With our growth
strategy of opening new restaurants in select domestic and international markets
and our emphasis on high-quality food and service, we believe Morton's is well
positioned as the U.S. economy rebounds. In light of current weaker economic
conditions, our Company is enhancing efforts to stimulate guest traffic and
continuing to manage costs as effectively as possible."
RESTAURANT DEVELOPMENT
During 2007, the Company opened Morton's steakhouses in San Jose, CA (February);
Macau, China (August); Annapolis, MD (October); Boston (Seaport District), MA
(November); and Woodland Hills, CA (December); and relocated its Morton's
steakhouse in Cincinnati, OH (August). The Company has entered into leases to
open new Morton's steakhouses in Brooklyn, NY; Coral Gables, FL; Ft. Lauderdale,
FL; Leawood/Overland Park, KS; and Naperville, IL.
During 2007, the Company completed the introduction of Bar 12-21 in its Morton's
steakhouses in Atlanta (Buckhead), GA; Boca Raton, FL; Charlotte, NC;
Georgetown, DC; Nashville, TN; Orlando, FL; Pittsburgh, PA; and Toronto, Canada.
From mid September 2006 through early February 2007, the Bertolini's at the
Forum Shops at Caesars Palace in Las Vegas was closed for renovation. The
Company's new Italian restaurant, Trevi, opened at that location on February 2,
2007.
The Company has experienced delays in opening several restaurants in fiscal 2007
primarily due to delays in obtaining permits and in construction, resulting in
lower revenues and higher pre-opening costs than initially planned.
ABOUT MORTON'S
Morton's Restaurant Group, Inc. is the world's largest operator of company-owned
upscale steakhouses. 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 9, 2008, the Company owned and operated 78 Morton's steakhouses
located in 66 cities in 28 states, Puerto Rico and five international locations
(Hong Kong, Macau, Singapore, Toronto and Vancouver), as well as four Italian
restaurants. Please visit our Morton's Web site at www.mortons.com.
FORWARD-LOOKING STATEMENTS
Except for the historical information contained in this news release, the
matters addressed are forward-looking statements. Forward-looking statements,
written, oral or otherwise made, represent the Company's expectation or belief
concerning future events. Without limiting the foregoing, the words "believes,"
"thinks," "anticipates," "plans," "expects" and similar expressions are intended
to identify forward-looking statements. The Company cautions that
forward-looking statements are subject to risks, uncertainties, assumptions and
other important factors that could cause actual results to differ materially, or
otherwise, from those expressed or implied in the forward-looking statements,
including, without limitation, risks of the restaurant industry, including a
highly competitive environment and 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, timely
construction and opening of new restaurants, 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
most recent Form 10-K, Forms 10-Q and other reports filed with the Securities
and Exchange Commission. Other unknown or unpredictable factors also could harm
the Company's results. Consequently, there can be no assurance that actual
results or developments anticipated by the Company will be realized or, even if
substantially realized, that they will have the expected consequences to, or
effects on, the Company. The Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by applicable
securities laws.
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