Note 11 - Segment Reporting

6 Months Ended

Dec. 01, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 11 – SEGMENT REPORTING

As discussed in Note 1 to the Condensed Consolidated Financial Statements, we reclassified unamortized debt issuance costs reported in our June 2, 2015 Consolidated Balance Sheets. Those reclassifications are reflected in the prior year amounts shown below for total assets.

As previously discussed in Notes 5 and 7 to the Condensed Consolidated Financial Statements, during the 13 weeks ended December 1, 2015, we entered into an agreement to sell eight Company-owned Lime Fresh restaurants in Florida for approximately $6.3 million, which we expect to complete over the remainder of fiscal year 2016, and closed the remaining 11 Company-owned Lime Fresh restaurants.

Financial results by reportable segment for the 13 and 26 weeks ended December 1, 2015 and December 2, 2014 are as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	December 1, 2015			December 2, 2014			December 1, 2015			December 2, 2014
Revenues:
Ruby Tuesday concept	$	256,753		$	257,814		$	531,000		$	533,857
Lime Fresh concept		4,203			4,845			9,436			9,984
Total revenues	$	260,956		$	262,659		$	540,436		$	543,841
Segment profit/(loss):
Ruby Tuesday concept	$	20,898		$	20,504		$	45,981		$	50,845
Lime Fresh concept		(7,675	)		(1,304	)		(7,221	)		(1,480	)
Total segment profit	$	13,223		$	19,200		$	38,760		$	49,365
Depreciation and amortization:
Ruby Tuesday concept	$	12,081		$	12,153		$	23,972		$	24,416
Lime Fresh concept		323			437			702			860
Support center and other		532			529			1,068			1,082
Total depreciation and amortization	$	12,936		$	13,119		$	25,742		$	26,358
Closures and impairments, net:
Ruby Tuesday concept	$	2,464		$	230		$	5,260		$	882
Lime Fresh concept		7,609			844			7,525			1,151
Support center and other	–				1			-			524
Total closures and impairments, net	$	10,073		$	1,075		$	12,785		$	2,557
Capital expenditures:
Ruby Tuesday concept							$	19,410		$	12,963
Lime Fresh concept								236			87
Support center and other								642			771
Total capital expenditures							$	20,288		$	13,821

Total assets by reportable segment are as follows (in thousands):

	December 1, 2015		June 2, 2015
Total assets:
Ruby Tuesday concept	$	779,256	$	786,931
Lime Fresh concept		4,518		10,839
Support center and other		100,344		127,682
Total assets	$	884,118	$	925,452

The following is a reconciliation of segment profit to loss before income taxes for the 13 and 26 weeks ended December 1, 2015 and December 2, 2014 (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	December 1, 2015			December 2, 2014			December 1, 2015			December 2, 2014
Segment profit	$	13,223		$	19,200		$	38,760		$	49,365
Less:
Depreciation and amortization		(12,936	)		(13,119	)		(25,742	)		(26,358	)
Unallocated general and administrative expenses		(9,147	)		(9,823	)		(21,044	)		(20,785	)
Preopening expenses		-			(162	)		-			(203	)
Trademark impairment		(1,999	)		-			(1,999	)		-
Interest expense, net		(5,105	)		(5,915	)		(11,105	)		(11,337	)
Other expense, net		(15	)		(49	)		(66	)		(619	)
Loss before income taxes	$	(15,979	)	$	(9,868	)	$	(21,196	)	$	(9,937	)