Ruth's Hospitality Group (RUTH) Tops Q3 EPS by 4c, Revenues Beat
Ruth's Hospitality Group (NASDAQ: RUTH) reported Q3 EPS of ($0.15), $0.04 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $63.4 million versus the consensus estimate of $55.06 million.
Highlights for the third quarter of 2020 were as follows:
- Total revenue in the third quarter of 2020 was $63.4 million, compared to $103.0 million in the third quarter of 2019.
- Net loss in the third quarter of 2020 was $5.3 million, or ($0.15) per diluted share, compared to net income of $4.5 million, or $0.16 per diluted share, in the third quarter of 2019.
- Net loss in the third quarter of 2020 included $1.2 million in severance costs and accelerated stock expense; $0.3 million in losses related to lease modifications; a $3.3 million impairment loss related to restaurant closures, long-lived assets and inventory; and a $0.2 million income tax expense related to the impact of discrete income tax items. Net income in the third quarter of 2019 included $0.3 million in acquisition-related expenses associated with the acquisition of the three restaurants from our Philadelphia and Long Island franchisee, and a $0.3 million income tax benefit related to the impact of discrete income tax items.
- Excluding these items, non-GAAP diluted loss per common share was ($0.04) in the third quarter of 2020, compared to a non-GAAP diluted earnings per common share of $0.15 in the third quarter of 2019. The Company believes that non-GAAP diluted earnings per common share provides a useful alternative measure of financial performance to improve comparability of diluted earnings per common share between periods. Investors are advised to see the attached Reconciliation of Non-GAAP Financial Measure table for additional information.
Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “Our operations team has worked tirelessly to adapt to an ever changing regulatory environment and I’m thrilled with the continued sales trend improvement since the end of the second quarter that was the driver of our positive cash flow during the quarter. In addition to the sales improvement, we were also able to produce higher restaurant-level margin on lower sales compared to last year once our dining rooms have been reopened with capacity restrictions. As we look forward to the end of the year, we are cautiously optimistic about the health of our business and feel prepared with proven business models to operate in a variety of regulatory scenarios. All of these accomplishments would not have been possible without the tireless efforts from all of our Ruth’s Chris team members and our franchise partners.”
As a reminder, due to the ongoing uncertainty around the duration and severity of the COVID-19 pandemic, the Company previously withdrew its financial guidance for fiscal year 2020.
For earnings history and earnings-related data on Ruth's Hospitality Group (RUTH) click here.