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 March 1, 1997
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
RUBY TUESDAY, INC.
(Exact name of registrant as specified in charter)
GEORGIA 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: (334)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 .
17,809,566
(Number of shares of $0.01 par value common stock outstanding as of April 11,
1997.)
Exhibit Index appears on page 13.
INDEX
PAGE
NUMBER
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS AS OF
MARCH 1, 1997 AND JUNE 1, 1996.................. 3
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THIRTEEN AND THIRTY-NINE WEEKS ENDED
MARCH 1, 1997 AND MARCH 2, 1996................. 4
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED
MARCH 1, 1997 AND MARCH 2, 1996................. 5
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS...................................... 6-7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS........................... 7-11
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........................ NONE
ITEM 5. OTHER INFORMATION....................... NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K........ 12
SIGNATURES...................................... 12
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
ITEM 1
RUBY TUESDAY, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT PER-SHARE DATA)
<CAPTION>
March 1, June 1,
1997 1996
(UNAUDITED) (AUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and short-term investments.................. $ 9,216 $ 7,139
Receivables - trade and other.................... 3,979 2,040
Inventories...................................... 9,075 8,681
Prepaid expenses................................. 10,057 12,410
Deferred income tax benefits..................... 4,313 2,988
Total current assets........................... 36,640 33,258
PROPERTY AND EQUIPMENT - at cost....................... 497,077 443,475
Less accumulated depreciation.................... (155,955) (129,937)
341,122 313,538
COSTS IN EXCESS OF NET ASSETS ACQUIRED................. 20,562 21,058
OTHER ASSETS........................................... 15,822 13,262
TOTAL ASSETS................................. $414,146 $381,116
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable................................. $ 29,763 $ 26,386
Short-term borrowings............................ 8,480 6,001
Accrued liabilities:
Taxes, other than income taxes................. 9,506 10,602
Payroll and related costs...................... 9,265 6,917
Insurance...................................... 8,612 7,478
Rent and other................................. 12,279 9,112
Current portion of notes and mortgages payable... 100 95
Total current liabilities.................... 78,005 66,591
NOTES AND MORTGAGES PAYABLE............................ 71,032 76,108
DEFERRED INCOME TAXES.................................. 12,743 8,232
OTHER DEFERRED LIABILITIES............................. 35,426 32,842
SHAREHOLDERS' EQUITY:
Common stock, $0.01 par value;(authorized 50,000
shares; issued 17,732 @ 3/1/97; 17,598 @ 6/01/96) 177 176
Capital in excess of par value................... 3,344 1,762
Retained earnings................................ 216,024 198,354
219,545 200,292
Less common stock held by Deferred Compensation
Plan - at cost(122 shares @ 3/1/97; 134 shares
@ 6/01/96)...................................... (2,605) (2,949)
216,940 197,343
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY..... $414,146 $381,116
The accompanying notes are an integral part of the consolidated financial statements
</TABLE>
</PAGE>
<PAGE>
<TABLE>
RUBY TUESDAY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER-SHARE DATA)
(UNAUDITED)
<CAPTION>
Thirteen Weeks Ended Thirty-Nine Weeks Ended
March 1, 1997 March 2, 1996 March 1, 1997 March 2, 1996
<S> <C> <C> <C> <C>
Revenues............................. $172,605 $163,957 $486,205 $461,922
Operating costs and expenses:
Cost of merchandise................ 46,464 44,848 131,729 126,879
Payroll and related costs.......... 54,985 53,872 158,045 155,765
Other, net......................... 36,349 34,802 105,407 100,327
Selling, general and administrative 11,424 9,440 32,162 30,301
Depreciation....................... 9,693 8,845 28,378 25,642
Loss on impairment of assets....... 25,881 25,881
Restructure charges................ 5,257 5,257
Interest expense, net.............. 919 1,993 3,088 3,515
159,834 184,938 458,809 473,567
Income (loss) from continuing
operations before income taxes...... 12,771 (20,981) 27,396 (11,645)
Provision (benefit) for income taxes. 4,536 (8,142) 9,726 (5,104)
Income (loss) from continuing
operations......................... 8,235 (12,839) 17,670 (6,541)
Loss from discontinued operations,
net of applicable income taxes..... (12,114) (2,222)
Net income (loss).................... $ 8,235 $(24,953) $ 17,670 $ (8,763)
Earnings (loss) per common and common
equivalent share:
Continuing operations.............. $ 0.46 $ (0.73) $ 0.99 $ (0.37)
Discontinued operations............ (0.68) (0.13)
Earnings (loss) per common and common
equivalent share.................. $ 0.46 $ (1.41) $ 0.99 $ (0.50)
Weighted average common and common
equivalent shares................. 17,848 17,520 17,881 17,645
The accompanying notes are an integral part of the consolidated financial statements
</TABLE>
</PAGE>
<PAGE>
<TABLE>
RUBY TUESDAY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<CAPTION>
Thirty-Nine Weeks Ended
March 1, March 2,
1997 1996
<S> <C> <C>
Operating Activities:
Income from continuing operations................. $ 17,670 $ (6,541)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation.................................... 28,378 25,642
Loss on impairment of assets.................... 25,881
Amortization of intangibles..................... 550 520
Deferred income taxes........................... 963 (9,526)
Loss on disposition of assets................... 800 3,034
Other, net...................................... (391)
Changes in operating assets and liabilities:
Increase in receivables...................... (1,939) (977)
Increase in inventories...................... (394) (1,082)
Decrease in prepaid and other assets......... 1,697 1,497
Increase in accounts payable,
accrued and other liabilities............... 11,270 10,898
Increase/(decrease) in income taxes payable.. 4,888 (5,548)
Cash provided by continuing operations............ 63,883 43,407
Cash provided by discontinued operations.......... 10,030
Net cash provided by operating activities....... 63,883 53,437
Investing Activities:
Purchases of property and equipment............... (58,702) (94,075)
Proceeds from disposal of assets.................. 78 2,828
Other, net........................................ (2,517) (4,953)
Discontinued operations investing activities, net. (14,448)
Net cash used by investing activities........... (61,141) (110,648)
Financing Activities:
Proceeds from long-term debt...................... 42,102
Net change in short-term borrowings............... 2,479 883
Principal payments on long-term debt ............. (5,071) (65)
Proceeds from issuance of stock, including
treasury stock.................................. 2,868 2,078
Change in RTI stock held by Deferred
Compensation Plan................................ 344 1,189
Stock repurchases................................. (1,285) (700)
Dividends paid.................................... (9,385)
Discontinued operations financing activities, net. 20,609
Net cash provided by financing activities....... (665) 56,711
Increase in cash and short-term investments....... 2,077 (500)
Cash and short-term investments:
Beginning of year............................... 7,139 5,957
End of quarter.................................. $ 9,216 $ 5,457
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
</PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited 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 Ruby
Tuesday, Inc.'s annual report for the fiscal year ended June 1,
1996. The accompanying unaudited consolidated financial statements
reflect all adjustments for normal recurring accruals. These
adjustments are necessary, in the opinion of management, for a fair
presentation of the financial position, 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 - DISCONTINUED OPERATIONS
On March 7, 1996, the shareholders of Morrison Restaurants Inc.
("Morrison") approved the distribution of its family dining
restaurant business (Morrison Fresh Cooking, Inc. ("MFCI")) and its
health care food and nutrition services business (Morrison Health
Care, Inc. ("MHCI")) to its shareholders effective March 9, 1996. As
of the distribution date, the Company has no ownership interest in
either MFCI or MHCI, except for stock held in connection with
employee benefit plans. In accordance with Accounting Principles
Board Opinion No. 30, the financial results of these two businesses,
together referred to as the Morrison Group, are reported as
discontinued operations.
NOTE C - ASSET IMPAIRMENT/RESTRUCTURE CHARGES
In the third quarter of fiscal 1996, the Board of Directors of the
Company approved the closing of ten Ruby Tuesdays, four Mozzarella's
and two Tia's restaurants based upon management's review of negative
cash flow and operating loss units and other considerations. A
charge of $13.4 million was recorded at that time, consisting of a
$10.0 million loss on impairment of assets (net of an assumed
salvage value of $0.9 million), and $3.4 million for the settlement
of the related lease obligations. Subsequently, a decision was made
to keep two of the units open because of operational improvements at
these units. As of March 1, 1997, all of the remaining 14 units
have been closed. During the quarter, the Company paid approximately
$0.6 million in lease obligations and settlement costs relating to
these units which have been closed. As of March 1, 1997, $3.2
million of the lease settlement reserve remains. At March 1, 1997,
the remaining recorded salvage value was $0.1 million.
NOTE D - SUBSEQUENT EVENTS
On April 4, 1997 the Board of Directors authorized the additional
repurchase of up to 1.0 million shares of Company stock, bringing
the total shares available for repurchase at that date to
approximately 2.0 million. In addition, the Company's Board of
Directors approved a dividend policy that calls for payment of semi-
annual dividends of approximately $3.0 million annually with the
first dividend payment expected to be paid in the third quarter of
fiscal 1998.
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
General
The Company reported net income from continuing operations of $8.2
million for the thirteen weeks ended March 1, 1997 compared to
($12.8) million for the corresponding period of the prior year.
Year-to-date income from continuing operations increased to $17.7
million for the thirty-nine weeks ended March 1, 1997 compared to
($6.5) million in 1996.
In the third quarter of fiscal 1996, the Board of Directors of the
Company approved the closing of ten Ruby Tuesdays, four Mozzarella's
and two Tia's restaurants based upon management's review of negative
cash flow and operating loss units and other considerations. A
charge of $13.4 million was recorded at that time, consisting of a
$10.0 million loss on impairment of assets (net of an assumed
salvage value of $0.9 million), and $3.4 million for the settlement
of the related lease obligations. Subsequently, a decision was made
to keep two of the units open because of operational improvements at
these units. As of March 1, 1997, all of the remaining 14 units
have been closed. During the quarter, the Company paid approximately
$0.6 million in lease obligations and settlement costs relating to
these units which have been closed. As of March 1, 1997, $3.2
million of the lease settlement reserve remains. At March 1, 1997,
the remaining recorded salvage value was $0.1 million.
Results of Operations
The following table sets forth selected restaurant operating data as
a percentage of revenues for the periods indicated. All information
is derived from the consolidated financial statements of the Company
included herein.
Thirty-Nine Weeks Ended
March 1, March 2,
1997 1996
Revenues................................ 100.0% 100.0%
Operating costs and expenses:
Cost of merchandise................ 27.1 27.5
Payroll and related costs.......... 32.5 33.7
Other, net......................... 21.7 21.7
Selling, general and administrative 6.6 6.6
Depreciation....................... 5.8 5.5
Loss on impairment of assets....... 5.6
Restructure charges................ 1.1
Interest expense, net.............. 0.7 0.8
94.4 102.5
Income (loss)from continuing
operations before income taxes..... 5.6 (2.5)
Provision (benefit) for income taxes.... 2.0 (1.1)
Income from continuing operations....... 3.6 (1.4)
Income from discontinued operations,
net of applicable income taxes..... (0.5)
Net income (loss)....................... 3.6% (1.9)%
The following table shows year-to-date restaurant openings,
closings, and total restaurants as of the end of the third quarter.
Year-to-date Year-to-date Total Open at End
Openings Closings of Third Quarter
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
1997 1996 1997 1996 1997 1996
Ruby Tuesday 23 38 5 11 319 302
Mozzarella's 2 5 0 3 48 46
Tia's 2 4 1 0 19 18
The Company estimates that approximately seven additional Ruby
Tuesdays and one Tia's unit will be opened during the remainder of
fiscal 1997.
Company Restaurant Sales
Company revenues from continuing operations increased $8.6 million
or 5.3% to $172.6 million for the quarter and increased $24.3
million or 5.3% to $486.2 million for the thirty-nine weeks ended
March 1, 1997. The sales increase is the result of a net addition
of 20 units (see previous chart) and positive same store sales for
the quarter.
Cost of Merchandise, Payroll and Related Costs and Other Operating Costs
Cost of merchandise of continuing operations increased in dollar
amounts for both the quarter and year-to-date periods. Cost of
merchandise for the quarter increased $1.6 million to $46.5 million
and $4.9 million to $131.7 million for the thirty-nine weeks ended
March 1, 1997. These costs, however, decreased as a percentage of
revenues. This decrease is attributable to a new menu implemented
during second quarter which resulted in lower food costs;
improvement in rebates and volume discounts; and increased focus
regarding food cost management at the unit level.
Payroll and related costs for the quarter and thirty-nine weeks
ended March 1, 1997 increased 2.1% and 1.5%, respectively, compared
to the same periods of fiscal 1996. Payroll and related expenses
decreased as a percentage of revenues for both the thirteen and
thirty-nine weeks ended March 1, 1997. The decrease is primarily
attributable to management labor reductions made in an effort to
more accurately match the number of managers needed for each unit to
unit volume levels and fewer unit openings compared to the prior
year.
While other operating costs increased in dollar amounts for both the
quarter and year-to-date periods, they remained relatively constant
as a percentage of revenues.
Selling, general and administrative expenses increased in dollar
amounts and as a percentage of revenues for the quarter ended March
1, 1997 compared to the same quarter last year. The increase is due
to additional advertising expense incurred related to several
promotional projects, including the "Neighborhood Introduction
Program", a couponing promotion which began during the third quarter
of fiscal 1997. Selling, general, and administrative expenses
increased in dollar amounts but remained constant as a percentage of
revenues for the thirty-nine weeks ended March 1, 1997 compared to
the same period last year.
Depreciation expense increased $0.8 million (9.6%) and $2.7 million
(10.7%) for the quarter and thirty-nine weeks ended March 1, 1997,
respectively. The increase is due to the net addition of 20
restaurants and the effect of recent information technology
expenditures.
Interest Expense (net of Interest Income)
Net interest expense decreased $1.1 million to $0.9 million for the
quarter and $0.4 million to $3.1 million for the thirty-nine weeks
ended March 1, 1997 compared to the same periods of the prior year.
The decrease for the year-to-date period is primarily due to
reductions in Company borrowings.
Income Taxes
The effective income tax rate on continuing operations for both the
thirteen and thirty-nine weeks ended March 1, 1997 was 35.5%
compared to 38.8% and 43.8%, respectively, for the same periods of
the prior year. Excluding the effects of asset impairment and
restructure charges, the effective income tax rate for the thirty-
nine weeks ended March 2, 1996 was 35.2%. The year-to-date
effective rate increased due to a decrease in the Targeted Jobs Tax
Credit.
Earnings per Share
Earnings per share are based on the weighted average number of
shares outstanding during each quarter and are adjusted for the
assumed conversion of shares issuable upon exercise of options,
after the assumed repurchase of common shares with the related
proceeds. The difference between primary and fully diluted weighted
average shares reflects the maximum extent of potential dilution
that conversions of shares could create.
LIQUIDITY AND CAPITAL RESOURCES
Total assets at March 1, 1997 were $414.1 million, a $33.0 million
increase from $381.1 million as of the prior fiscal year end. Net
property and equipment increased $27.6 million from June 1, 1996.
The increase was primarily the net result of capital expenditures of
$58.7 million, offset by reductions in net property and equipment
resulting from depreciation expense ($28.4 million), retirements
($0.9 million) and an increase in other ($0.3 million). In
addition, the Company made the decision to sell certain land held
rather than develop those locations. As a result, net property and
equipment decreased approximately $2.1 million as this amount was
reclassified into current assets as an investment. The Company
anticipates that during the remainder of fiscal 1997, capital
expansion will be financed primarily by funds generated by
operations with minimal incremental financing from borrowings on
lines of credit when necessary.
Total liabilities at March 1, 1997 were $197.2 million, a $13.4
million increase from $183.8 million as of the end of the prior
fiscal year. At March 1, 1997 the Company had $70.0 million in
borrowings outstanding under its five-year credit facility. Long-
term borrowings of continuing operations decreased $5.0 million from
the end of the prior fiscal year primarily as a result of a shift to
borrowings under the Company's lines of credit. The weighted
average interest rate on these long-term borrowings and lines of
credit was 5.93% during the quarter.
In addition, at March 1, 1997, the Company had committed lines of
credit amounting to $25.0 million (of which $16.5 million remained
available at March 1, 1997) and non-committed lines of credit
amounting to $15.0 million with various banks at varying interest
rates. These lines are subject to periodic review by each bank and
may be canceled by the Company at any time.
Accounts payable increased $3.4 million from the prior fiscal year-
end primarily due to an increase in the accrual for construction
invoices coupled with increases attributable to the normal growth in units.
KNOWN EVENTS, UNCERTAINTIES AND TRENDS
Financial and Stock Repurchase Plans
The Board of Directors adopted, on March 30, 1994, a financial
strategy that placed more emphasis on debt management and
established a target capital structure which utilizes a prudent
amount of debt to minimize the weighted average cost of capital
while allowing the Company to maintain financial flexibility and
the equivalent of an investment-grade (BBB) bond rating. This
financial strategy sets a target debt-to-capital ratio of 60%,
including operating leases. The strategy also provides for
repurchasing Company stock whenever cash flow exceeds funding
requirements while maintaining the target capital structure.
Accordingly, the Board approved the repurchase of additional stock
which brought the total authorized for repurchase at that time to
2.3 million shares. On April 4, 1997, the Board of Directors
renewed its commitment to this strategy and authorized the
repurchase of an additional 1.0 million shares bringing the total
shares available for repurchase to approximately 2.0 million shares.
The Company intends to continue to periodically repurchase stock
under its stock repurchase programs.
New Accounting Standards
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, "Earnings per Share", which is required to be
adopted on December 31, 1997. At that time, the Company will be
required to change the method currently used to compute earnings per
share and to restate all prior periods. Under the new requirements
for calculating primary earnings per share, the dilutive effect of
stock options will be excluded. The impact is expected to result in
an increase in primary earnings per share for the quarter ended
March 1,1997 of $0.01 per share. The Company has not yet determined
what the impact of Statement 128 will be on the calculation of fully
diluted earnings per share.
Cash Dividend
On April 4, 1997, the Board of Directors approved a dividend policy
that provides for payment of semi-annual cash dividends of
approximately $3.0 million annually. The Company expects to pay the
first dividend in the third quarter of fiscal 1998.
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The foregoing sections contain various "forward-looking" statements
which represent the Company's expectations or beliefs concerning
future events, including the following: statements regarding unit
growth and future capital expenditures. The Company cautions that a
number of important factors could, individually or in the aggregate,
cause actual results to differ materially from those included in the
forward-looking statements including, without limitation, the
following: consumer spending trends and habits; mall-traffic trends;
increased competition in the casual dining restaurant market;
weather conditions in the regions of the country in which the
Company operates restaurants; consumers' acceptance of the Company's
development concepts; and laws and regulations affecting labor and
employee benefit costs.
PART II - OTHER INFORMATION
ITEM 1
LEGAL PROCEEDINGS
The Company is, from time to time, party to ordinary, routine
litigation incidental to its business. In the opinion of
management, the ultimate resolution of all pending legal proceedings
will not have a material adverse effect on the Company's business,
financial position, results of operations or liquidity.
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
The following exhibits are filed as part of this report:
Exhibit
No.
11 Computation of Primary and Fully Diluted Earnings Per Share
27 Financial Data Schedule
REPORTS ON FORM 8-K
None
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.
Ruby Tuesday, Inc.
(Registrant)
4/15/97 /s/ J. RUSSELL MOTHERSHED
DATE J. RUSSELL MOTHERSHED
Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number Description
11 Computation of Primary and Fully Diluted Earnings Per Share
27 Financial Data Schedule
ITEM 6.(a)
EXHIBIT 11: COMPUTATION OF EARNINGS PER SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED
MAR. 1, 1997 MAR. 2, 1996 MAR. 1,1997 MAR. 2,1996
PRIMARY EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
<S> <C> <C> <C> <C>
Average common shares outstanding...... 17,669 17,302 17,615 17,286
Average additional common shares
issuable on exercise of dilutive
stock options (computed by use of
the "treasury stock method", at the
average market price)................ 179 218 266 359
TOTALS.............. 17,848 17,520 17,881 17,645
Net Income:
Continuing operations.................. $ 8,235 $(12,839) $ 17,670 $ (6,541)
Discontinued operations................ (12,114) (2,222)
$ 8,235 $(24,953) $ 17,670 $ (8,763)
Primary earnings per common and
common equivalent share:
Continuing operations.................. $ 0.46 $ (0.73) $ 0.99 $ (0.37)
Discontinued operations................ (0.68) (0.13)
$ 0.46 $ (1.41) $ 0.99 $ (0.50)
</TABLE>
ITEM 6.(a) (continued)
EXHIBIT 11: COMPUTATION OF EARNINGS PER SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED
MAR. 1, 1997 MAR. 2, 1996 MAR. 1,1997 MAR. 2,1996
FULLY DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
<S> <C> <C> <C> <C>
Average common shares outstanding...... 17,669 17,302 17,615 17,286
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)........................ 179 369 266 310
TOTALS.............. 17,848 17,671 17,881 17,596
Net Income:
Continuing operations.................. $ 8,235 $(12,839) $ 17,670 $ (6,541)
Discontinued operations................ (12,114) (2,222)
$ 8,235 $(24,953) $ 17,670 $ (8,763)
Fully diluted earnings per common and
common equivalent share:
Continuing operations.................. $ 0.46 $ (0.73) $ 0.99 $ (0.37)
Discontinued operations................ (0.68) (0.13)
$ 0.46 $ (1.41) $ 0.99 $ (0.50)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM RUBY
TUESDAY, INC. FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDED MARCH 1,
1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> MAR-01-1997
<CASH> 9,216
<SECURITIES> 0
<RECEIVABLES> 3,979
<ALLOWANCES> 0
<INVENTORY> 9,075
<CURRENT-ASSETS> 36,640
<PP&E> 497,077
<DEPRECIATION> 155,955
<TOTAL-ASSETS> 414,146
<CURRENT-LIABILITIES> 78,005
<BONDS> 71,032
0
0
<COMMON> 177
<OTHER-SE> 216,763
<TOTAL-LIABILITY-AND-EQUITY> 414,146
<SALES> 485,849
<TOTAL-REVENUES> 486,205
<CGS> 131,729
<TOTAL-COSTS> 323,992
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,088
<INCOME-PRETAX> 27,396
<INCOME-TAX> 9,726
<INCOME-CONTINUING> 17,670
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,670
<EPS-PRIMARY> $0.99
<EPS-DILUTED> $0.99
</TABLE>
