15
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter ended June 30, 1999
Commission File No. 0-10943
RYAN'S FAMILY STEAK HOUSES, INC.
(Exact name of registrant as specified in its charter)
South Carolina No. 57-0657895
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
405 Lancaster Avenue (29650)
P. O. Box 100
Greer, South Carolina 29652
(Address of principal executive
offices, including zip code)
864-879-1000
(Registrant's telephone number, including area code)
------------------------------------------------------------
-----------
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No ________
The number of shares outstanding of each of the registrant's
classes of common stock as of June 30, 1999:
37,091,000 shares of common stock, $1.00 Par Value
PART I. FINANCIAL INFORMATION
<TABLE>
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Quarter Ended
June 30, July 1,
1999 1998
<S> <C> <C>
Restaurant sales $ 174,248 167,496
Operating expenses:
Food and beverage 66,779 65,203
Payroll and benefits 50,621 48,296
Depreciation 6,553 6,288
Other operating expenses 21,117 20,398
Total operating expenses 145,070 140,185
General and administrative
expenses 10,207 7,626
Interest expense 1,854 1,584
Revenues from franchised
restaurants (312) (294)
Other income, net (325) (333)
Earnings before income taxes 17,754 18,728
Income taxes 6,497 6,761
Net earnings $ 11,257 11,967
Net earnings per common share:
Basic $ .30 .28
Diluted .29 .27
Weighted-average shares:
Basic 37,555 43,400
Diluted 38,286 44,087
</TABLE>
See accompanying notes to consolidated financial statements.
<TABLE>
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Six Months Ended
June 30, July 1,
1999 1998
<S> <C> <C>
Restaurant sales $ 333,827 320,682
Operating expenses:
Food and beverage 128,519 126,495
Payroll and benefits 97,907 93,711
Depreciation 12,907 12,430
Other operating expenses 40,921 39,144
Total operating expenses 280,254 271,780
General and administrative
expenses 17,763 14,349
Interest expense 3,619 3,037
Revenues from franchised
restaurants (603) (572)
Other income, net (1,087) (1,008)
Earnings before income taxes 33,881 33,096
Income taxes 12,403 11,947
Net earnings $ 21,478 21,149
Net earnings per common
share:
Basic $ .56 .48
Diluted .55 .47
Weighted-average shares:
Basic 38,324 44,522
Diluted 39,100 45,001
</TABLE>
See accompanying notes to consolidated financial statements.
<TABLE>
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 30,
1999 1998
ASSETS (Unaudited)
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 568 1,502
Receivables 3,298 2,675
Inventories 4,696 4,327
Deferred income taxes 4,311 4,311
Other current assets 939 546
Total current assets 13,812 13,361
Property and equipment:
Land and improvements 116,312 114,307
Buildings 323,594 311,809
Equipment 200,402 193,014
Construction in progress 35,812 35,742
676,120 654,872
Less accumulated
depreciation 174,376 162,018
Net property and
equipment 501,744 492,854
Other assets 3,124 3,178
$ 518,680 509,393
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable 77,100 72,400
Current portion of
long-term debt 23,252 11,626
Accounts payable 14,140 6,811
Income taxes payable 2,034 3,759
Accrued liabilities 33,763 30,431
Total current liabilities 150,289 125,027
Long-term debt 69,748 81,374
Deferred income taxes 22,744 22,620
Total liabilities 242,781 229,021
Shareholders' equity:
Common stock of $1.00
par value; authorized
100,000,000 shares;
issued 37,091,000 shares
in 1999 and 39,158,000
shares in 1998 37,091 39,158
Additional paid-in capital - 1,274
Retained earnings 238,808 239,940
Total shareholders'
equity 275,899 280,372
Commitments
$ 518,680 509,393
</TABLE>
See accompanying notes to consolidated financial statements.
<TABLE>
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Six Months Ended
June 30, July 1,
1999 1998
Cash flows from operating
activities:
<S> <C> <C>
Net earnings $ 21,478 21,149
Adjustments to reconcile net
earnings to net cash
provided by operating
activities: Depreciation
and amortization 13,721 13,856
Gain on sale of property
and equipment (94) (125)
Decrease (increase) in:
Receivables (623) (90)
Inventories (369) (20)
Prepaid expenses (393) (1,283)
Other assets 50 41
Increase (decrease) in:
Accounts payable 7,329 1,571
Income taxes payable (1,725) 1,191
Accrued liabilities 3,332 3,865
Deferred income taxes 124 119
Net cash provided by operating
activities 42,830 40,274
Cash flows from investing
activities:
Proceeds from sale of property
and equipment 3,692 362
Capital expenditures (26,205) (20,711)
Net cash used in investing
activities (22,513) (20,349)
Cash flows from financing
activities:
Net proceeds from notes
payable 4,700 29,400
Proceeds from issuance of
common stock 1,870 1,534
Purchases of common stock (27,821) (50,615)
Net cash used in financing
activities (21,251) (19,681)
Increase (decrease) in cash
and cash equivalents (934) 244
Cash and cash equivalents -
beginning of period 1,502 289
Cash and cash equivalents -
end of period $ 568 533
</TABLE>
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1999
(Unaudited)
Note 1. Description of Business
Ryan's Family Steak Houses, Inc. operates a single-concept
restaurant chain consisting of 283 Company-owned and 24
franchised restaurants located principally in the southern
and midwestern United States. The Company, organized in
1977, opened its first restaurant in 1978 and completed its
initial public offering in 1982. The Company does not
operate or franchise any international units and has no
individually significant customers.
Note 2. Basis of Presentation
The consolidated financial statements include the financial
statements of Ryan's Family Steak Houses, Inc. and its
wholly owned subsidiaries. All significant intercompany
balances and transactions have been eliminated in
consolidation.
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Consolidated operating
results for the six months ended June 30, 1999 are not
necessarily indicative of the results that may be expected
for the fiscal year ending December 29, 1999. For further
information, refer to the consolidated financial statements
and footnotes included in the Company's annual report on
Form 10-K for the fiscal year ended December 30, 1998.
Note 3. New Accounting Pronouncement and Reclassification
At December 30, 1998, the Company adopted the provisions of
the American Institute of Certified Public Accountants'
Statement of Position ("SOP") 98-5, "Reporting on the Costs
of Start-Up Activities". SOP 98-5 requires pre-opening
costs to be expensed as incurred. Accordingly, all
unamortized pre-opening costs at December 30, 1998,
amounting to $790,000, were charged to 1998 depreciation and
amortization. For the quarter and six months ended June 30,
1999, all pre-opening costs are included in "other operating
expenses" and the prior year's amortization of pre-opening
costs was reclassified accordingly.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Quarter ended June 30, 1999 versus July 1, 1998
Restaurant sales during the second quarter of 1999 increased
by 4.0% over the comparable quarter of 1998. The sales
growth resulted from the 1.6% unit growth of Company-owned
restaurants, which totaled 283 at June 30, 1999 and 278 at
July 1, 1998, and from a 1.6% increase in same-store sales.
The Company calculates same-store sales using average unit
sales in units that have been open for at least 18 months
and operating during comparable weeks during the current and
prior year. The second quarter's sales results represent
the sixth consecutive quarter of higher same-store sales and
compare well with the 1.8% same-store sales increase
experienced during the second quarter of 1998.
Total costs and expenses of Company-owned restaurants
include food and beverage, payroll, payroll taxes and
employee benefits, depreciation, repairs, maintenance,
utilities, supplies, advertising, insurance, property taxes
and licenses. Such costs, as a percentage of sales, were
83.3% during the second quarter of 1999 compared to 83.7% in
1998. Food and beverage costs decreased to 38.3% of sales
in 1999 from 38.9% of sales in 1998 due to improved store-
level controls and lower dairy, beef and poultry costs.
Payroll and benefits increased to 29.1% of sales in 1999
from 28.8% of sales in 1998 due principally to higher
compensation costs of both store management and hourly
personnel. All other operating costs, including
depreciation, decreased to 15.9% of sales in 1999 from 16.0%
of sales in 1998 due principally to decreased store closing
charges related to current year store relocations (see
"Liquidity and Capital Resources"). Based on these factors,
the Company's operating margin at the restaurant level
increased to 16.7% of sales in the second quarter of 1999
from 16.3% of sales in 1998.
General and administrative expenses increased to 5.9% of
sales in 1999 compared to 4.6% of sales in 1998, resulting
principally from higher media advertising and performance-
based compensation costs. The Company's plans included a
heavy concentration of media advertising during the second
quarter of 1999, and accordingly, substantially all of
1999's media advertising budget of $2.4 million was incurred
during the quarter. Such costs amounted to $2.3 million
(1.3% of sales), an increase of 0.9% of sales from the
second quarter of 1998.
Interest expense for the second quarters of 1999 and 1998
amounted to 1.1% and 0.9% of sales, respectively. Due to
the Company's stock repurchase program (see "Liquidity and
Capital Resources"), total debt increased $19.4 million from
the second quarter of 1998 to $170.1 million at June 30,
1999. The effective average interest rate was 5.5% during
the second quarter of 1999 compared to 6.1% in 1998.
Franchise revenues for the second quarters of both 1999 and
1998 amounted to 0.2% of sales. There were 24 franchised
Ryan's at June 30, 1999 compared to 26 at July 1, 1998. The
Company's sole franchisee, Family Steak Houses of Florida,
Inc. ("Family"), is required by its current franchise
agreement with the Company to operate 27 Ryan's restaurants
at December 31, 1999, and, based on discussions with
Family's management, it is anticipated that this requirement
will not be met. Negotiations are currently underway with
Family to develop a revised opening schedule.
Effective income tax rates of 36.6% and 36.1% were used for
the second quarters of 1999 and 1998, respectively. The
higher rate in 1999 resulted from receiving less benefit
from various tax-planning strategies implemented in prior
years.
Net earnings for the second quarter of 1999 amounted to
$11.3 million in 1999 compared to $12.0 million in 1998.
Due to a 13% reduction in weighted-average shares (diluted)
resulting from the Company's stock repurchase program (see
"Liquidity and Capital Resources"), earnings per share
(diluted) increased 7.4% to 29 cents in 1999 compared to 27
cents in 1998.
Six months ended June 30, 1999 versus July 1, 1998
For the six months ended June 30, 1999, restaurant sales
were up 4.1% compared to the same period in 1998. Average
unit growth for the six months was 2.2%, and same-store
sales increased 1.6% for the first six months of 1999
compared to a 1.2% increase in 1998.
Six-month costs and expenses as described in the second
quarter's discussion were 84.0% and 84.8% of sales for
1999 and 1998, respectively. During the first six months
of 1999, costs and expenses were most affected by lower
food and beverage costs (down 0.9% of sales) resulting
from lower beef, pork and soup prices. Payroll and
benefits and other operating expense categories each
increased 0.1% of sales. Based on these factors, the
Company's operating margin at the restaurant level increased
to 16.0% for the first six months of 1999 compared to 15.2%
in 1998.
General and administrative expenses increased 0.8% for the
first six months of 1999 resulting principally from higher
media advertising and performance-based compensation costs
as noted in the second quarter discussion. Additional debt
resulting from the Company's stock repurchase program (see
"Liquidity and Capital Resources") caused interest expense
to increase by 0.1% of sales over the prior year.
Effective income tax rates of 36.6% and 36.1% were used for
the first six months of 1999 and 1998, respectively. The
higher rate in 1999 resulted from the decreased benefit of
various tax-planning strategies implemented in prior years.
Net earnings for the first six months of 1999 amounted to
$21.5 million compared to $21.1 million in 1998. Due to a
13% reduction in weighted-average shares (diluted) resulting
from the Company's stock repurchase program (see "Liquidity
and Capital Resources"), earnings per share (diluted)
increased 17% to 55 cents in 1999 compared to 47 cents in
1998.
LIQUIDITY AND CAPITAL RESOURCES
The Company's restaurant sales are primarily derived from
cash. Inventories are purchased on credit and are rapidly
converted to cash. Therefore, the Company does not maintain
significant receivables or inventories, and other working
capital requirements for operations are not significant.
At June 30, 1999, the Company's working capital was a $136.5
million deficit compared to a $111.7 million deficit at
December 30, 1998. Included in these amounts are notes
payable under bank lines of credit (see third succeeding
paragraph) and current portions of long-term debt, totaling
$100.4 million and $84.0 million at June 30, 1999 and
December 30, 1998, respectively. The Company does not
anticipate any adverse effects from the current working
capital deficit due to significant cash flow provided by
operations, which amounted to $42.8 million for the first
six months of 1999 and $73.0 million for the year ended
December 30, 1998.
Total capital expenditures for the first six months of 1999
amounted to $26.2 million. The Company opened seven and
closed four Ryan's restaurants during the first six months
of 1999. These numbers include two openings and two
closings related to relocated restaurants. Management
defines a relocation as a restaurant opened within 18 months
after closing another restaurant in the same marketing area.
A relocation represents a redeployment of assets within a
market. For all of 1999, the Company plans to open a total
of eighteen Ryan's, which will include six relocations.
Total capital expenditures for 1999 are estimated at $55
million. Expansion of Company-owned restaurants will occur
in states within the Company's current 22-state operating
area. The Company is currently concentrating its efforts on
Company-owned units and is not actively pursuing any
additional franchised locations, either domestic or
international.
The Company began a stock repurchase program in March 1996
and is currently authorized to repurchase a total of 20.0
million shares of the Company's common stock through
December 2000. Repurchases may be made from time to time on
the open market or in privately negotiated transactions in
accordance with applicable securities regulations, depending
on market conditions, share price and other factors.
Through June 30, 1999, approximately 17.5 million shares, or
33% of total shares available at the beginning of the
repurchase program, had been purchased at an aggregate cost
of $164.6 million. From July 1, 1999 through August 13,
1999, another 936,000 shares were purchased at an aggregate
cost of $10.1 million. Management intends to proceed with
the repurchase program during 1999 and 2000, subject to the
continued availability of capital and the other factors
described below in "Forward-Looking Information".
The extent of the Company's external funding requirements
for 1999 is dependent upon the level of stock repurchase
transactions during the year. Based on current target debt
levels, a maximum repurchase scenario would require
approximately $18 million of additional borrowings during
the remainder of 1999. All other funding needs, including
capital expenditures, are expected to be met by internally
generated cash from operations. The Company's debt
structure currently consists of a $93 million term loan (see
following paragraph) and several uncommitted bank lines
totaling $115 million at various short-term rates of which
$77.1 million was utilized at June 30, 1999.
The term loan agreement contains, among other provisions,
requirements for the Company to maintain a minimum net worth
level and certain financial ratios and restrictions on the
Company's ability to incur additional indebtedness, merge,
consolidate, and acquire or sell assets. In October 1998,
an amendment to the term loan agreement increased the
maximum permitted debt-to-total capitalization ratio to 45%
and set a fixed minimum net worth requirement of $255
million. At June 30, 1999, the Company exceeded the
agreement's most restrictive minimum net worth covenant by
approximately $20.9 million.
Under the current borrowing agreements, no interest rates
have been fixed and generally change in response to the
London Interbank Offered Rate ("LIBOR"). In October 1997,
the Company entered into an interest rate swap agreement
with a major regional bank as the issuing counterparty under
which the Company pays to (receives from) the counterparty
an amount by which the three-month LIBOR is less (greater)
than 5.54%. This transaction, which effectively converts
$25,000,000 of the floating-rate debt to a fixed-rate
obligation, runs through October 2000 and can be terminated
by the bank at any time. At June 30, 1999, the fair value
of the agreement was $103,000 unfavorable to the Company as
LIBOR at that date was less than 5.54%.
Management believes that its current capital structure is
sufficient to meet its 1999 requirements. However,
additional credit facilities are expected to be necessary to
meet future repurchase objectives in years 2000 and beyond.
Accordingly, discussions are underway with various financing
sources to review various credit options. Also, management
intends to continue monitoring the interest rate environment
and may enter into future interest rate hedging transactions
if deemed advantageous.
IMPACT OF INFLATION
The Company's operating costs that may be affected by
inflation consist principally of food, payroll and utility
costs. A number of the Company's restaurant team members
are paid at the minimum wage and, accordingly, legislated
changes to the minimum wage affect the Company's payroll
costs. Although no minimum wage increases have been
legislated, the possibility is mentioned frequently in
various political discussions. The Company is typically
able to increase its menu prices to cover most of the
payroll rate increases.
The Company considers its current price structure to be very
competitive. The Company considers this factor, among
others, when passing increased costs on to its customers.
Annual menu price increases have consistently ranged from 2%
to 4%.
YEAR 2000
The Company recognizes the need to ensure that its
operations will not be adversely impacted by software
failures associated with programming incompatibilities with
the year 2000 ("Y2K"). In 1997, the Company identified
those systems that were not Y2K-compliant and began
researching conversion and replacement options. Further
investigation, including a review by an outside consultant
of the operating environment related to the Company's
principal financial applications, continued throughout much
of 1998. The current Y2K conversion plan provides for
system replacements, enhancements and upgrades to be
completed by September 1999. Costs associated with the Y2K
plan that represent significant functional or technology
improvements are capitalized. Other costs related
principally to Y2K compatibility are charged to expense as
incurred. The total cost of the Y2K remediation project is
estimated at $740,000, consisting of approximately $200,000
of capital and $540,000 of expense costs. All funding is
expected to come from operating cash flows. At June 30,
1999, approximately $58,000 of capital and $120,000 of
expense had been spent on the project.
The Company's Information Technology department is leading
the Company's Y2K efforts. Reports on Y2K remediation
efforts are made periodically to the Company's senior
management and quarterly to the Company's Board of
Directors. At December 30, 1998, conversion of all major
corporate office financial systems (general ledger, accounts
payable, payroll and benefits) was complete. Upgrades to
critical store-level systems are expected to be completed by
the end of the third quarter of 1999, and remediation steps
for the corporate office's personal computers are expected
to be completed by the end of the third quarter. In July
1999, a multi-functional team tested the Y2K-readiness of
the Company's current software and hardware solutions by
performing critical store operations and corporate financial
functions with systems set with a year 2000 date. The test
was very successful with only minor (and correctable) issues
identified.
As part of its Y2K planning, the Company has identified
vendors whose goods and services are believed to be critical
to the Company's ability to operate its restaurants. The
Company's principal food distributor has informed the
Company that all of its systems related to the procurement
and delivery of food and other products to the Company's
restaurants were fully Y2K-compliant at the end of 1998.
The Company's credit card processor has also informed the
Company that its systems are now fully Y2K-compliant.
Furthermore, the credit card terminals used in the Company's
restaurants are already processing credit cards with post-
1999 expiration dates, and the processor has indicated that
no additional software modifications to the terminals will
be necessary. Finally, the Company sent questionnaires
during the first quarter of 1999 to its numerous depository
and disbursement banks and utility providers in order to
ascertain their ability to deliver services on January 1,
2000 and beyond. Responses to these questionnaires have so
far been guarded.
The Company's stores depend upon computers for point-of-sale
("POS") transactions, data and purchase order transmissions,
labor scheduling and payroll processes, and inventory and
food cost records. Other technology-dependent functions at
the stores are not significant. Management believes that
its Y2K plans fully address the stores' critical technology-
dependent functions and that remediation efforts, where
needed, will be completed by no later than the end of the
third quarter of 1999. Based on current progress, including
the successful resolution of previous POS software issues,
contingency planning in the event of a Y2K software failure
is not considered necessary. However, the Company is
developing contingency plans in the event of the failure of
critical support systems, including banking and utility
services, and expects such plans to be substantially
completed by the end of the third quarter of 1999. In
addition, any material disruption in the general economy as
a result of the Y2K problem could adversely affect the
Company's operations.
NEW ACCOUNTING PRONOUNCEMENT
In June 1998, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards ("SFAS")
No. 133, "Accounting for Derivative Instruments and Hedging
Activities". This statement standardizes the accounting for
derivative instruments, including derivative instruments
embedded in other contracts. Under SFAS No. 133, entities
are required to carry all derivative instruments as either
assets or liabilities on the balance sheet at fair value.
The accounting for changes in the fair value (i.e., gains
and losses) of a derivative instrument depends on its
intended use. The provisions of SFAS No. 133 must be
adopted by the beginning of 2001. The Company has not yet
assessed the impact this standard will have on its financial
condition or results of operations; however, the impact will
ultimately depend on the amount and type of derivative
instruments held at the time of adoption. As noted in
"Liquidity and Capital Resources", the Company was a party
to an interest rate swap agreement at June 30, 1999. The
Company does not enter into derivative instrument agreements
for trading or speculative purposes.
FORWARD-LOOKING INFORMATION
In accordance with the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, the
Company cautions that the statements in this report and
elsewhere, which are forward-looking and which provide
other than historical information, involve risks and
uncertainties that may impact the Company's actual results
of operations. All statements other than statements of
historical fact that address activities, events or
developments that the Company expects or anticipates will
or may occur in the future, including such things as
deadlines for completing projects, expected financial
results, results of Y2K remediation, and other such
matters are forward-looking information. The words
"estimate", "plans", "anticipate", "expects", "intend",
"believe", and similar expressions are intended to
identify forward-looking statements. All forward-looking
information reflects the Company's best judgment based on
current information. However, there can be no assurance
that other factors will not affect the accuracy of such
information. While it is not possible to identify all
factors, the following could cause actual results to
differ materially from expectations: general economic
conditions; competition; real estate availability; food
and labor supply costs; food and labor availability;
weather fluctuations; interest rate fluctuations; stock
market conditions; and other risks and factors described
from time to time in the Company's reports filed with the
Securities and Exchange Commission, including the
Company's annual report on Form 10-K for the fiscal year
ended December 30, 1998. The ability of the Company to
open new restaurants depends upon a number of factors,
including its ability to find suitable locations and
negotiate acceptable land acquisition and construction
contracts, its ability to attract and retain sufficient
numbers of restaurant managers and team members, and the
availability of reasonably priced capital. The extent of
the Company's stock repurchase program during 1999 and
future years depends upon the financial performance of the
Company's restaurants, the investment required to open new
restaurants, share price, the availability of reasonably
priced capital, the financial covenants contained in the
term loan agreement, and the maximum debt and share
repurchase levels authorized by the Company's Board of
Directors. Factors that could result in the Company not
being Y2K-compliant by January 1, 2000 include, but are
not limited to the following: failure to detect Y2K system
or programming incompatibilities in existing systems or
software; other programming incompatibilities related to
purchased or internally-developed software; the inability
to verify Y2K compliance by third parties; non-delivery of
Y2K-compliant solutions from developers of purchased
software; and the inability to engage or retain adequate
personnel, either internal or external, to correct Y2K
system and programming issues.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None reportable.
Item 2. Changes in
Securities.
None.
Item 3. Defaults Upon Senior
Securities.
None.
Item 4. Submission of
Matters to a Vote of Security Holders.
None reportable.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports
on Form 8-K.
(a)None.
(b)On April 6, 1999, the Company filed a report on
Form 8-K regarding sales information for March
1999.
On May 10, 1999, the Company filed a report on
Form 8-K regarding sales information for April
1999.
On June 7, 1999, the Company filed a report on
Form 8-K regarding sales information for May
1999.
On July 6, 1999, the Company filed a report on
Form 8-K regarding sales information for June
1999.
On August 9, 1999, the Company filed a report on
Form 8-K regarding sales information for July
1999.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
RYAN'S FAMILY STEAK HOUSES, INC.
(Registrant)
August 13, 1999 /s/Charles D. Way
Charles D. Way
Chairman, President and Chief
Executive Officer
August 13, 1999 /s/Fred T. Grant, Jr.
Fred T. Grant, Jr.
Vice President-Finance and
Treasurer
August 13, 1999 /s/Richard D. Sieradzki
Richard D. Sieradzki
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-29-1999
<PERIOD-END> JUN-30-1999
<CASH> 568
<SECURITIES> 0
<RECEIVABLES> 3,429
<ALLOWANCES> 131
<INVENTORY> 4,696
<CURRENT-ASSETS> 13,812
<PP&E> 676,120
<DEPRECIATION> 174,376
<TOTAL-ASSETS> 518,680
<CURRENT-LIABILITIES> 150,289
<BONDS> 69,748
0
0
<COMMON> 37,091
<OTHER-SE> 238,808
<TOTAL-LIABILITY-AND-EQUITY> 518,680
<SALES> 333,827
<TOTAL-REVENUES> 335,517
<CGS> 226,426
<TOTAL-COSTS> 298,017
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,619
<INCOME-PRETAX> 33,881
<INCOME-TAX> 12,403
<INCOME-CONTINUING> 21,478
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,478
<EPS-BASIC> 0.56
<EPS-DILUTED> 0.55
</TABLE>
