Note 11 - Segment Reporting

9 Months Ended

Mar. 01, 2016

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 second quarter of fiscal year 2016, 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 39 weeks ended March 1, 2016 and March 3, 2015 are as follows (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 1, 2016			March 3, 2015		March 1, 2016			March 3, 2015
Revenues:
Ruby Tuesday concept	$	268,577		$	281,118	$	799,577		$	814,975
Lime Fresh concept		2,893			4,795		12,329			14,779
Total revenues	$	271,470		$	285,913	$	811,906		$	829,754
Segment profit/(loss):
Ruby Tuesday concept	$	21,771		$	28,307	$	67,752		$	79,152
Lime Fresh concept		1,860			133		(5,361	)		(1,347	)
Total segment profit	$	23,631		$	28,440	$	62,391		$	77,805
Depreciation and amortization:
Ruby Tuesday concept	$	12,153		$	12,010	$	36,125		$	36,426
Lime Fresh concept		92			419		794			1,279
Support center and other		487			532		1,555			1,614
Total depreciation and amortization	$	12,732		$	12,961	$	38,474		$	39,319
Closures and impairments, net:
Ruby Tuesday concept	$	7,262		$	3,877	$	12,522		$	4,759
Lime Fresh concept		(1,139	)		114		6,386			1,265
Support center and other		–			–		–			524
Total closures and impairments, net	$	6,123		$	3,991	$	18,908		$	6,548
Capital expenditures:
Ruby Tuesday concept						$	26,359		$	19,917
Lime Fresh concept							236			145
Support center and other							751			1,072
Total capital expenditures						$	27,346		$	21,134

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

	March 1, 2016		June 2, 2015
Total assets:
Ruby Tuesday concept	$	761,050	$	786,931
Lime Fresh concept		4,406		10,839
Support center and other		105,008		127,682
Total assets	$	870,464	$	925,452

The following is a reconciliation of segment profit to loss before income taxes for the 13 and 39 weeks ended March 1, 2016 and March 3, 2015 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 1, 2016			March 3, 2015			March 1, 2016			March 3, 2015
Segment profit	$	23,631		$	28,440		$	62,391		$	77,805
Less:
Depreciation and amortization		(12,732	)		(12,961	)		(38,474	)		(39,319	)
Unallocated general and administrative expenses		(9,457	)		(10,777	)		(30,501	)		(31,562	)
Preopening expenses		–			(50	)		–			(253	)
Trademark impairment		–			–			(1,999	)		–
Interest expense, net		(5,005	)		(5,446	)		(16,110	)		(16,783	)
Other expense, net		(6	)		(87	)		(72	)		(706	)
Loss before income taxes	$	(3,569	)	$	(881	)	$	(24,765	)	$	(10,818	)