Exhibit 99.1
RUTH’S HOSPITALITY GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations – Preliminary and Unaudited
(Amounts in thousands, except share and per share data)
| 13 Weeks Ended |
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| 26 Weeks Ended |
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| June 28, |
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| June 30, |
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| June 28, |
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| June 30, |
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| 2020 |
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| 2019 |
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| 2020 |
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| 2019 |
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Revenues: |
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Restaurant sales | $ | 26,978 |
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| $ | 104,017 |
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| $ | 130,018 |
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| $ | 217,003 |
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Franchise income |
| 956 |
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| 4,421 |
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| 4,582 |
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| 8,979 |
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Other operating income |
| 483 |
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| 1,805 |
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| 2,353 |
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| 4,002 |
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Total revenues |
| 28,417 |
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| 110,243 |
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| 136,953 |
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| 229,984 |
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Costs and expenses: |
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Food and beverage costs |
| 8,030 |
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| 29,023 |
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| 38,657 |
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| 60,871 |
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Restaurant operating expenses |
| 26,273 |
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| 51,156 |
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| 81,827 |
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| 104,759 |
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Marketing and advertising |
| 1,487 |
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| 4,121 |
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| 4,925 |
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| 7,751 |
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General and administrative costs |
| 7,066 |
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| 8,929 |
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| 15,095 |
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| 17,681 |
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Depreciation and amortization expenses |
| 5,522 |
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| 5,124 |
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| 11,345 |
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| 10,092 |
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Pre-opening costs |
| 304 |
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| 244 |
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| 781 |
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| 341 |
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Gain on lease modifications |
| (488 | ) |
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| — |
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| (488 | ) |
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| — |
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Loss on impairment |
| 4,283 |
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| — |
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| 12,980 |
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| — |
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Total costs and expenses |
| 52,477 |
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| 98,597 |
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| 165,122 |
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| 201,495 |
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Operating income (loss) |
| (24,060 | ) |
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| 11,646 |
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| (28,169 | ) |
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| 28,489 |
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Other income (expense): |
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Interest expense, net |
| (1,291 | ) |
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| (417 | ) |
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| (1,919 | ) |
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| (822 | ) |
Other |
| 3 |
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| 13 |
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| 36 |
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| 15 |
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Income (loss) before income taxes |
| (25,348 | ) |
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| 11,242 |
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| (30,052 | ) |
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| 27,682 |
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Income tax expense (benefit) |
| (7,750 | ) |
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| 1,933 |
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| (8,636 | ) |
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| 4,462 |
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Net income (loss) | $ | (17,598 | ) |
| $ | 9,309 |
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| $ | (21,416 | ) |
| $ | 23,220 |
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Basic earnings (loss) per share | $ | (0.59 | ) |
| $ | 0.32 |
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| $ | (0.74 | ) |
| $ | 0.79 |
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Diluted earnings (loss) per share | $ | (0.59 | ) |
| $ | 0.31 |
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| $ | (0.74 | ) |
| $ | 0.78 |
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Shares used in computing net income per common share: |
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Basic |
| 29,951,332 |
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| 29,252,651 |
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| 29,119,296 |
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| 29,264,076 |
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Diluted |
| 29,951,332 |
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| 29,726,102 |
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| 29,119,296 |
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| 29,768,702 |
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Dividends declared per common share | $ | - |
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| $ | 0.13 |
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| $ | 0.15 |
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| $ | 0.26 |
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Reconciliation of Non-GAAP Financial Measure – Unaudited
(Amounts in thousands, except share data)
| 13 Weeks Ended |
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| 26 Weeks Ended |
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| June 28, |
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| June 30, |
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| June 28, |
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| June 30, |
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| 2020 |
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| 2019 |
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| 2020 |
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| 2019 |
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GAAP Net income (loss) | $ | (17,598 | ) |
| $ | 9,309 |
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| $ | (21,416 | ) |
| $ | 23,220 |
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GAAP Income tax expense (benefit) |
| (7,750 | ) |
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| 1,933 |
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| (8,636 | ) |
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| 4,462 |
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GAAP Income from continuing operations before income taxes |
| (25,348 | ) |
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| 11,242 |
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| (30,052 | ) |
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| 27,682 |
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Adjustments: |
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Franchisee acquisition costs |
| — |
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| 71 |
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| — |
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| 110 |
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Severence payments |
| 330 |
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| — |
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| 330 |
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| — |
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Gain on lease modifications |
| (488 | ) |
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| — |
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| (488 | ) |
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| — |
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Loss on impairment |
| 4,283 |
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| — |
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| 12,980 |
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| — |
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Adjusted net income before income taxes |
| (21,223 | ) |
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| 11,313 |
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| (17,230 | ) |
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| 27,792 |
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Adjusted income tax expense (1) |
| 6,712 |
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| (1,950 | ) |
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| 5,412 |
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| (4,488 | ) |
Impact of excluding certain discrete income tax items |
| 175 |
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| (122 | ) |
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| 96 |
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| (605 | ) |
Non-GAAP net income | $ | (14,336 | ) |
| $ | 9,241 |
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| $ | (11,722 | ) |
| $ | 22,699 |
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GAAP diluted earnings (loss) per common share | $ | (0.59 | ) |
| $ | 0.31 |
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| $ | (0.74 | ) |
| $ | 0.78 |
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Non-GAAP diluted earnings per common share | $ | (0.48 | ) |
| $ | 0.31 |
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| $ | (0.40 | ) |
| $ | 0.76 |
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Weighted-average number of common shares outstanding - diluted |
| 29,951,332 |
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| 29,726,102 |
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| 29,119,296 |
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| 29,768,702 |
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(1) Adjusted income tax is calculated by multiplying the Non-GAAP adjustments by our marginal federal and state income tax rates and adding or subtracting the result to/from our GAAP income tax expense.