UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 4, 1993
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-12454
MORRISON RESTAURANTS INC.
(Exact name of registrant as specified in charter)
DELAWARE 63-0475239
(State of incorporation or (I.R.S. Employer identifi-
organization) cation no.)
4721 Morrison Drive
P.O. Box 160266
Mobile, AL 36625
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (205)344-3000
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 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 .
36,022,910
(Number of shares of $0.01 par value common stock outstanding
as of January 11, 1994)
This document contains 17 sequentially numbered pages including
exhibits. Exhibit Index appears on page 15.
Page 1 of 17
INDEX
PAGE
NUMBER
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF
DECEMBER 4, 1993 AND JUNE 5, 1993.............. 3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN AND TWENTY-SIX WEEKS
ENDED DECEMBER 4, 1993 AND DECEMBER 5, 1992.... 4
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS FOR THE TWENTY-SIX WEEKS ENDED
DECEMBER 4, 1993 AND DECEMBER 5, 1992.......... 5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS..................................... 6-7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS................................. 8-11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS............................. 12
ITEM 2. CHANGES IN SECURITIES......................... NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES............... NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS............................ 12
ITEM 5. OTHER INFORMATION............................. 12-13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.............. 13
SIGNATURES................................................. 14
Page 2
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
ITEM 1
FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
DEC. 4, 1993 JUNE 5, 1993
(UNAUDITED) (AUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and short-term investments.................. $18,250 $31,372
Receivables - Accounts and Notes................. 43,640 37,127
Allowance for Doubtful Accounts.................. (2,774) (3,087)
Inventories...................................... 16,908 15,503
Prepaid expenses and other current assets........ 24,488 23,606
Total current assets........................... 100,512 104,521
PROPERTY, PLANT AND EQUIPMENT - at cost............ 470,367 434,572
Less accumulated depreciation and amortization... 225,436 214,242
244,931 220,330
OTHER INVESTMENTS.................................. 8,918 12,836
COST IN EXCESS OF NET ASSETS ACQUIRED.............. 22,963 23,081
OTHER ASSETS....................................... 44,160 37,574
TOTAL ASSETS................................. $421,484 $398,342
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts and notes payable....................... $37,616 $33,872
Other current liabilities........................ 77,831 68,743
Total Current Liabilities.................... 115,447 102,615
LONG-TERM DEBT..................................... 13,025 13,085
OTHER DEFERRED LIABILITIES......................... 67,394 63,018
STOCKHOLDERS' EQUITY:
Common Stock, $.01 par value
(authorized: 50,000 shares;
issued: 12/04/93 - 43,644 shares
issued: 06/05/93 - 29,097 shares)............. 436 291
Capital in excess of par value................... 76,303 75,181
Retained earnings................................ 229,477 215,226
306,216 290,698
Less common stock held in treasury - at cost
(7,457 shares @ 12/04/93; 4,723 shares @ 06/05/93) 80,598 71,074
225,618 219,624
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY..... $421,484 $398,342
The accompanying notes are an integral part of the consolidated financial statements.
Page 3
</TABLE>
</PAGE>
<PAGE>
<TABLE>
ITEM 1
FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
DEC.4, 1993 DEC.5, 1992 DEC.4, 1993 DEC.5, 1992
<S> <C> <C> <C> <C>
SALES................................. $310,360 $281,626 $592,518 $529,986
COST AND EXPENSES:
Cost of merchandise................. 97,730 90,116 185,747 168,725
Payroll and related costs........... 110,977 102,531 215,180 194,842
Other operating costs............... 51,175 45,488 98,429 87,137
Selling, administrative and general. 18,563 15,722 35,831 29,521
Depreciation........................ 9,658 8,643 19,067 17,223
Other Taxes......................... 2,781 2,519 5,536 4,833
Net interest (income) expense....... (19) 129 102 228
290,865 265,148 559,892 502,509
INCOME BEFORE INCOME TAXES AND CUMU-
LATIVE EFFECT OF ACCOUNTING CHANGES. 19,495 16,478 32,626 27,477
PROVISION FOR FEDERAL AND STATE
INCOME TAXES........................ 7,457 6,121 12,479 10,142
INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGES.................. 12,038 10,357 20,147 17,335
CUMULATIVE EFFECT OF ACCOUNTING
CHANGES, NET:
Postretirement benefits............. 0 0 0 (2,579)
Income Taxes......................... 0 0 0 2,395
NET INCOME............................ $12,038 $10,357 $20,147 $17,151
EARNINGS PER COMMON AND COMMON
EQUIVALENT SHARE
Primary:
Before Cumulative Effect of
Accounting Changes................ $0.32 $0.27 $0.54 $0.46
Cumulative Effect of Accounting Changes, net:
Postretirement Benefits............. 0.00 0.00 0.00 (0.07)
Income Taxes........................ 0.00 0.00 0.00 0.06
Total............................... $0.32 $0.27 $0.54 $0.45
Fully Diluted:
Before Cumulative Effect of
Accounting Changes................ $0.32 $0.27 $0.54 $0.46
Cumulative Effect of Accounting Changes, net:
Postretirement Benefits............. 0.00 0.00 0.00 (0.07)
Income Taxes........................ 0.00 0.00 0.00 0.06
Total............................... $0.32 $0.27 $0.54 $0.45
CASH DIVIDENDS PER SHARE PAID......... $0.0833 $0.08 $0.1633 $0.16
WEIGHTED AVERAGE SHARES USED IN
EARNINGS PER SHARE COMPUTATION:
Primary............................. 37,521 38,044 37,444 37,927
Fully Diluted....................... 37,521 38,194 37,472 38,042
The accompanying notes are an integral part of the consolidated financial statements.
All share data has been adjusted to give effect for the 3-for-2 split paid on
October 29, 1993.
Page 4
</TABLE>
</PAGE>
<PAGE>
<TABLE>
ITEM 1
FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<CAPTION>
FOR THE 26 WEEKS ENDED
DEC. 4, 1993 DEC. 5, 1992
<S> <C> <C>
CASH FROM OPERATIONS.......................... $48,026 $45,070
INVESTING ACTIVITIES:
Purchases of property, plant and equipment.... (45,288) (26,630)
Other......................................... (1,620) (1,580)
NET CASH USED BY INVESTING ACTIVITIES......... (46,908) (28,210)
FINANCING ACTIVITIES:
Stock repurchases............................. (10,148) (3)
Dividends..................................... (5,895) (5,923)
Other......................................... 1,803 375
NET CASH USED BY FINANCING ACTIVITIES......... (14,240) (5,551)
(DECREASE)/INCREASE IN CASH AND
SHORT-TERM INVESTMENTS..................... (13,122) 11,309
Beginning cash and short-term investments..... 31,372 50,100
Ending cash and short-term investments........ $18,250 $61,409
The accompanying notes are an integral part of the consolidated financial statements.
Page 5
</TABLE>
</PAGE>
ITEM 1
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with 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. The statements should be read
in conjunction with the notes to the consolidated financial
statements included in Morrison Restaurants Inc.'s annual report
for the fiscal year ended June 5, 1993. The accompanying
unaudited, condensed consolidated financial statements reflect
all adjustments (which comprise only normal recurring accruals)
necessary, in the opinion of management, to a fair presentation
of the financial position and the results of operations and the
cash flows for the interim periods presented. The results of
operations for the interim periods reported herein are not
necessarily indicative of results to be expected for the full
year.
NOTE B - POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
Previously reported first and second quarter 1993 results have
been restated to reflect adoption of SFAS No. 106 - "Employers'
Accounting for Postretirement Benefits Other than Pensions." See
Note 3 of the notes to the consolidated financial statements
included in Morrison Restaurants Inc.'s annual report to
stockholders for the fiscal year ended June 5, 1993.
NOTE C - INCOME TAXES
Previously reported first and second quarter 1993 results have
been restated to reflect adoption of SFAS No. 109 - "Accounting
for Income Taxes." See Note 4 of the notes to the consolidated
financial statements included in Morrison Restaurants Inc.'s
annual report to stockholders for the fiscal year ended June 5,
1993.
Page 6
<PAGE>
<TABLE>
ITEM 1
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. MORRISON RESTAURANTS INC.
SUPPLEMENTAL INFORMATION
(DOLLARS IN THOUSANDS)
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
% %
DEC.4, 1993 DEC.5, 1992 Change DEC.4, 1993 DEC.5, 1992 Change
<S> <C> <C> <C> <C> <C> <C>
SALES:
Ruby Tuesday Group............. $110,709 $90,425 22 $217,997 $177,150 23
Morrison's Hospitality Group... 126,315 118,120 7 229,182 209,367 9
Morrison's Family Dining Group. 73,448 73,053 1 145,489 143,450 1
Corporate and Other............ (112) 28 (150) 19
$310,360 $281,626 10 $592,518 $529,986 12
OPERATING PROFIT:
Ruby Tuesday Group............. $7,981 $6,677 20 $16,932 $14,154 20
Morrison's Hospitality Group... 9,408 8,131 16 12,686 10,856 17
Morrison's Family Dining Group. 4,892 3,634 35 8,689 6,532 33
22,281 18,442 21 38,307 31,542 21
Corporate Expenses............. (2,805) (1,835) 53 (5,579) (3,837) 45
Net Interest Income (Expense).. 19 (129) (102) (228)
Income Before Income Taxes and
Cumulative Effect of Accounting
Accounting Changes............. 19,495 16,478 18 32,626 27,477 19
Income Taxes.................... 7,457 6,121 22 12,479 10,142 23
Income before Cumulative
Effect of Accounting Changes... 12,038 10,357 16 20,147 17,335 16
Accounting Changes, net:
Postretirement Benefits......... 0 0 0 (2,579)
Income Taxes.................... 0 0 0 2,395
Net Income...................... $12,038 $10,357 16 $20,147 $17,151 17
Earnings per Common and
Common Equivalent Share........
Primary:
Before Cumulative Effect of
Accounting Changes............ $0.32 $0.27 19 $0.54 $0.46 17
Cumulative Effect of
Accounting Changes, net:
Postretirement Benefits....... 0.00 0.00 0.00 (0.07)
Income Taxes.................. 0.00 0.00 0.00 0.06
Total.......................... $0.32 $0.27 19 $0.54 $0.45 20
Fully Diluted:
Before Cumulative Effect of
Accounting Changes............ $0.32 $0.27 19 $0.54 $0.46 17
Cumulative Effect of
Accounting Changes, net:
Postretirement Benefits....... 0.00 0.00 0.00 (0.07)
Income Taxes.................. 0.00 0.00 0.00 0.06
Total.......................... $0.32 $0.27 19 $0.54 $0.45 20
Common and Common Equivalent
Shares:
Primary....................... 37,521 38,044 37,444 37,927
Fully Diluted................. 37,521 38,194 37,472 38,042
OPERATING PROFIT MARGINS:
Ruby Tuesday Group............. 7.2% 7.4% 7.8% 8.0%
Morrison's Hospitality Group... 7.4% 6.9% 5.5% 5.2%
Morrison's Family Dining Group. 6.7% 5.0% 6.0% 4.6%
All share data has been adjusted to give effect for the 3-for-2 split paid on October 29, 1993
Page 7
</TABLE>
</PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
1. FINANCIAL CONDITION
1.1 ASSETS
Total Assets at December 4, 1993 were $421.5 million, a $21.4
million increase from $400.1 million as of the end of the prior
quarter, and a $23.1 million increase from $398.3 million as of
the prior year end. Cash and Short-Term investments decreased
$6.0 million during the quarter and $13.1 million for the year to
date due to the Company's purchase of treasury stock during the
first quarter ended Sept. 4, 1993 and capital expenditures in
each quarter of the twenty-six week period ended December 4,
1993. Accounts and Notes Receivables increased $5.6 million
during the quarter and $6.5 million for the year as a result of
the seasonality of the institutional revenue for the Morrison
Hospitality Group. Property, Plant and Equipment increased $18.0
million during the quarter and $24.6 million from the prior
fiscal year ended June 5, 1993. The increase is due to the net
result of capital expenditures of $28.2 million for the quarter
and $45.3 million for the year to date, less depreciation expense
of $9.7 million and $19.1 million and $.5 million and $1.6
million in retirements for the quarter and year to date. Capital
expenditures consisted primarily of $21.1 and $33.1 million unit
expansion in the Ruby Tuesday Group, $3.2 and $6.0 million in the
Morrison Hospitality Group, and $3.5 and $5.7 million in the
Morrison Family Dining Group for the quarter and year to date
ended December 4, 1993. The Company anticipates that all capital
expansion during the fiscal year can be financed entirely from
funds generated by operations. Other Investments decreased $3.9
million for the year as a result of the sale of the Admiral
Benbow Inn as discussed in section 3.3 "Disposal of Investment".
Other Assets increased $6.5 million for the year to date ended
December 4, 1993. This increase is a result of a $3.1 million
note receivable for the sale of the Admiral Benbow Inn, a $1.8
million increase in construction allowances for Morrison's
Hospitality Group, and a $1.9 increase in deferred income taxes
in accordance with FAS 109.
1.2. LIABILITIES
Total Liabilities at December 4, 1993 were $195.9 million, a
$10.9 million increase from $185.0 million as of the end of the
prior quarter and a $17.1 million increase from $178.7 million as
of the end of the fiscal year. The increase in liabilities from
the prior quarter is due to the growth in the company's
operations and resulting operational liabilities. There were no
short-term borrowings as of December 4, 1993, September 4, 1993
or June 5, 1993, and the Company does not anticipate that there
will be any short-term borrowings during the third quarter.
Page 8
1. FINANCIAL CONDITION (CONTINUED)
1.3 WORKING CAPITAL
The Company had negative working capital of $14.9 million and the
current ratio was .87 at December 4, 1993, compared to positive
$1.9 million working capital and 1.02 current ratio at the end of
the prior year. Growth in the number of operations and the stock
repurchase program have kept the Company's working capital low.
1.4 SHORT-TERM BORROWING
At December 4, 1993, the Company had lines of credit with various
banks amounting to $ 65.0 million. These lines are subject to
periodic review by each bank and may be canceled by the Company
at any time.
1.5 LONG-TERM BORROWING
Long-term borrowing decreased slightly during the quarter due to
normally scheduled payments.
1.6 CASH DIVIDENDS
Cash Dividends paid during the second quarter of fiscal year 1994
amounted to $3.0 million which is consistent with the cash
dividends paid during the prior quarter. Dividends per share
were $0.0833 for the second quarter.
2. RESULTS OF OPERATIONS
2.1 SALES
Total sales for the quarter increased 10.2% over the same quarter
of the prior year. Total sales for the twenty-six weeks ended
December 4, 1993 increased 11.8% compared to the same period in
the prior year. The sales increase for the quarter over the same
quarter in the prior year was the net result of a 22.4% sales
increase in the Ruby Tuesday Group, a 6.9% increase in the
Hospitality Group and a .5% increase in the Family Dining Group.
The sales increase for the twenty-six weeks ended December 4,
1993 over the twenty-six weeks ended December 5, 1992 was the net
result of sales increases of 23.1%, 9.5%, and 1.4% for the Ruby
Tuesday Group, Hospitality Group and Family Dining Group,
respectively.
The sales increase in the Ruby Tuesday Group is primarily the
result of additional units. There is a net addition of 42 Casual
Dining units when compared to the same quarter of the prior year.
On December 4, 1993, the Ruby Tuesday Group was composed of 206
Ruby Tuesday, 37 L&N Seafood Grill, 22 Silver Spoon and two
Sweetpea restaurants.
The sales increase in the Hospitality Group is attributable to an
increase in new accounts. On December 4, 1993 the Hospitality
Group was composed of food service contract accounts in
Hospitals, Education, and Business and Industry.
Page 9
2. RESULTS OF OPERATIONS (CONTINUED)
2.1 SALES (CONTINUED)
The sales increase in the Family Dining Group is the net result
of an increase in customers offset by the strategic closing of
units. The Family Dining Group was composed of 159 units as of
December 4, 1993.
2.2 COSTS AND EXPENSES
Total Costs and Expenses for the 13 and 26 weeks ended Decem-
ber 4, 1993 were $290.9 and $559.9 million, respectively, a $25.7
million increase from the $265.1 million in the same quarter of
the prior year and a $57.4 million increase from $502.5 million
in the same twenty-six weeks of the prior year.. Costs and
expenses when expressed as a percent of sales for the 13 and 26
week periods ended December 4, 1993 decreased to 93.7% and 94.5%
from 94.1% and 94.8% in the same period of the prior year,
respectively. This decrease is largely attributable to the
success of food-cost-control programs.
2.3 PRE-TAX PROFIT
The consolidated pre-tax profit before the cumulative effect of
accounting changes for the 13 and 26 weeks ended December 4, 1993
increased $3.0 million and 5.1 million, or 18.3% and 18.7%,
respectively. The consolidated pre-tax profit margin before the
cumulative effect of accounting changes for the 13 and 26 weeks
ended December 4, 1993 was 6.3% and 5.5% compared to 5.9% and
5.2% in the prior year.
2.4 INCOME TAX EXPENSE
The effective income tax rate for the 13 and 26 weeks ended
December 4, 1993 was 38.25%, as compared to 37.15% and 36.9% for
the same 13 and 26 weeks of the prior year. The increase in the
effective income tax rate is due to an increase in the federal
income tax rate of 1%, an increase in state income taxes, and a
reduction in non-taxable.
2.5 EARNINGS PER SHARE
As a result of Accounting Principles Board Opinion No. 15., we
have reported both primary and fully diluted earnings per share
on the income statement. APB No. 15 requires dual disclosure
when there is a three percent difference between earnings per
share computed using shares outstanding and earnings per share
computed using shares outstanding plus common stock equivalents.
This difference occurred in the first quarter of fiscal year
1994.
Page 10
3. KNOWN EVENTS, UNCERTAINTIES AND TRENDS
3.1 SEASONALITY OF OPERATIONS
The operating results as well as certain current assets and
liabilities of the Hospitality Group are affected by the
traditional closings of educational institutions during the
summer months and their subsequent reopenings at the beginning of
September.
3.2 STOCK REPURCHASE PROGRAM
On March 31, 1993, the Board of Directors authorized a program to
repurchase up to 1,000,000 additional shares of Morrison common
stock. Shares acquired through the purchase will be held as
Treasury Stock and will be used to provide stock for general
corporate purposes. The program may be discontinued at any time.
This program is in addition to the program announced August 25,
1989, under which Morrison is authorized to acquire additional
shares of common stock for general corporate purposes and the
program announced October 1, 1992, to repurchase shares for the
purpose of providing sufficient shares of common stock for
issuance pursuant to employee benefit plans, including the
purchase of shares to offset any dilutive effect of such plans.
The aggregate number of shares authorized to be repurchased under
all programs, prior to the three-for-two stock split paid on
October 29, 1993, has been limited to 3.2 million shares.
Funding for the repurchase programs will come from working
capital and debt. During the 26 weeks ended December 4, 1993,
the company repurchased 336,239 shares of the Company's stock at
an average purchase price of $30.18. All of these shares were
repurchased prior to the 3-for-2 stock split paid October 29,
1993. Also, as of January 4, 1994, subsequent to the quarter
ended December 4, 1993, Morrison Restaurants, Inc had purchased
an additional 177,615 shares of treasury stock at an average
purchase price of $22.15.
3.3 DISPOSAL OF INVESTMENT
The Company sold its investment in the Admiral Benbow Inn in
Tampa, Florida, on August 4, 1993, for $3,607,000. Proceeds were
composed of $500,000 cash and a note receivable of $3,107,000.
The note carries interest of 8% for the first two years and 9%
for the remaining eight years. The financial impact on the
Company's 26 weeks ended December 4, 1993 were immaterial.
3.4 TIA'S AGREEMENT
On November 23, 1993, Morrison entered into an agreement to
assist in the development of up to 10 Tia's Restaurants and has
options to acquire the company during the next five years.
Page 11
PART II - OTHER INFORMATION
ITEM 1
LEGAL PROCEEDINGS
The Registrant is presently, and from time to time, subject to
pending claims and suits arising in the ordinary course of its
business. In the opinion of management, the ultimate resolution
of these pending legal proceedings will not have a material
adverse effect on the Registrant's operations or consolidated
financial position.
ITEM 4
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Stockholders held on September 29, 1993,
the stockholders of the Company elected Class I Directors to
serve a three year term on the board and approved the adoption of
a Grant of Performance-Based Stock Rights under the Morrison
Restaurants Inc. Stock Incentive Plan. The results of the voting
were as follows:
<TABLE>
<CAPTION>
PROPOSAL 1
Authority
Director Nominees For Withheld
<S> <C> <C>
E. Eugene Bishop 20,886,792 3,153,600
Arthur R. Outlaw 20,886,503 3,153,889
Benjamin F. Payton 20,876,993 3,163,399
</TABLE>
<TABLE>
PROPOSAL 2
Grant of Performance-Based
Stock Rights under Stock
Incentive Plan
<CAPTION>
For Against Abstained Non-Votes
<C> <C> <C> <C>
18,010,820 2,480,302 297,372 3,251,898
</TABLE>
ITEM 5
OTHER INFORMATION
Morrison common stock began trading on the New York Stock
Exchange on October 21, 1993. The stock is now listed under the
symbol "RI". Morrison stock has previously been traded through
NASDAQ.
Page 12
ITEM 5 - OTHER INFORMATION (CONTINUED)
At their regular quarterly meeting on January 5, 1994, the Board
of Directors announced the following items:
(a) A regular cash dividend of eight and one-third cents per
share was declared, payable at the close of business on January
31, 1994, to shareholders of record as of January 14, 1994.
(b) E. Eugene Bishop will retire as an officer of the company on
May 5, 1994. Mr. Bishop will remain Chairman of the Board until
May 5, 1995, and will remain on the Board of Directors
thereafter.
Page 12
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibit is filed as part of this report:
Exhibit
No.
11 Computation of Primary and Fully Diluted
Earnings Per Share
(b) Their were no reports on Form 8-K filed during the quarter
ended December 4, 1993.
Page 13
SIGNATURES
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.
MORRISON RESTAURANTS INC.
(Registrant)
01/14/94 /s/ J. RUSSELL MOTHERSHED
DATE J. RUSSELL MOTHERSHED
Vice President, Controller
and Treasurer
(Vice President and Principal
Accounting Officer)
Page 14
EXHIBIT INDEX
Sequentially
Exhibit Numbered Page
11 Computation of Primary and Fully
Diluted Earnings Per Share 16 - 17
Page 15
<PAGE>
<TABLE>
ITEM 6.(a)
EXHIBIT 11: COMPUTATION OF EARNINGS PER SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
DEC.4, 1993 DEC.5, 1992 DEC.4, 1993 DEC.5, 1992
PRIMARY EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
<S> <C> <C> <C> <C>
Average common shares outstanding...... 36,132 37,061 36,113 36,993
Average additional common shares
issuable on exercise of dilutive
stock options (computed by use of
the "treasury stock method", at the
average market price)................ 1,389 983 1,331 934
TOTALS.............. 37,521 38,044 37,444 37,927
Net Income............................. $12,038 $10,357 $20,147 $17,151
Primary earnings per common and
common equivalent share.............. $0.32 $0.27 $0.54 $0.45
All share data has been adjusted to give effect for the 3-for-2 stock split paid on
October 29, 1993.
Page 16
</TABLE>
</PAGE>
<PAGE>
<TABLE>
ITEM 6.(a) (continued)
EXHIBIT 11: COMPUTATION OF EARNINGS PER SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
DEC.4, 1993 DEC.5, 1992 DEC.4, 1993 DEC.5, 1992
FULLY DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
<S> <C> <C> <C> <C>
Average common shares outstanding...... 36,132 37,061 36,113 36,993
Average additional common shares
issuable on exercise of dilutive
stock options (computed by use of
the "treasury stock method", at the
higher of period-end or average
market price)........................ 1,389 1,133 1,359 1,049
TOTALS.............. 37,521 38,194 37,472 38,042
Net Income............................. $12,038 $10,357 $20,147 $17,151
Fully diluted earnings per common and
common equivalent share.............. $0.32 $0.27 $0.54 $0.45
All share data has been adjusted to give effect for the 3-for-2 stock split paid on
October 29, 1993
Page 17
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