Forward-Looking Statements<\/p>\n
In response to the business disruption caused by the COVID-19 outbreak, we havetaken the following actions.<\/p>\n
- Due to the government mandates regarding limited or no in-restaurant dining<\/p>\n
due to COVID-19, we are leveraging our Ruth's Anywhere program to enhance<\/p>\n
revenue in restaurants that have open dining rooms or in markets where<\/p>\n
take-out and delivery sales are sufficient to cover the costs of management<\/p>\n
staffing those locations.<\/p>\n
- Where the Company is re-opening restaurants, it is doing so with the safety<\/p>\n
and wellbeing of its guests and team members as the top priority.<\/p>\n
- We suspended all new restaurant construction and non-essential capital<\/p>\n
- We made significant reductions in ongoing operating expenses, including<\/p>\n
curtailing operations in restaurants where take-out and delivery is not<\/p>\n
viable and furloughing a significant number of team members in the field and<\/p>\n
- We have been in discussions with our landlords to reduce or defer our rent<\/p>\n
- In March, we entered into a Second Amendment to our Credit Agreement, which<\/p>\n
increased our borrowing capacity to $150.0 million and relaxed the leverage<\/p>\n
covenant restrictions to 4.0 times Bank Adjusted EBITDA through the first<\/p>\n
quarter of 2021. We borrowed the remaining available amount under the<\/p>\n
Revolving Credit Facility as a precautionary measure in order to increase<\/p>\n
leverage covenant restrictions during the first and second quarters of 2021<\/p>\n
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entered into a fourth amendment to its Credit Agreement, which limits the<\/p>\n
amount by which the monthly liquidity covenant escalates from the net cash<\/p>\n
proceeds of an equity offering.<\/p>\n
- We completed a common stock offering which resulted in approximately $49.6<\/p>\n
million of net proceeds, net of underwriting discounts and commissions. The<\/p>\n
Company used $9.8 million to pay down debt.<\/p>\n
- The Company permanently closed five Company-owned restaurants and terminated<\/p>\n
leases at two of the seven locations that were under construction.<\/p>\n
Unless the context otherwise indicates, all references in this report to the\"Company,\" \"Ruth's,\" \"we,\" \"us,\" \"our\" or similar words are to Ruth'sHospitality Group, Inc. and its subsidiaries.<\/p>\n
Overview<\/p>\n
Our Annual Report on Form 10-K for the fiscal year ended December 29, 2019provides additional information about our business, operations and financialcondition.<\/p>\n
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Results of Operations<\/p>\n
Second Quarter Ended June 28, 2020 (13 Weeks) Compared to Second Quarter EndedJune 30, 2019 (13 Weeks)<\/p>\n
Other Income and Expense. During the second quarter of fiscal year 2020, werecognized other income of $3 thousand. During the second quarter of fiscal year2019, we recognized other income of $13 thousand.<\/p>\n
Twenty-six Weeks Ended June 28, 2020 Compared to Twenty-six Weeks Ended June 30,2019<\/p>\n
Liquidity and Capital Resources<\/p>\n
Overview<\/p>\n
Senior Credit Facility<\/p>\n
The Fourth Amendment changes the amount of net cash proceeds from equityissuances that the Company must retain in order to meet certain liquidityrequirements.<\/p>\n
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Sources and Uses of Cash<\/p>\n
The following table presents a summary of our net cash provided by (used in)operating, investing and financing activities (in thousands):<\/p>\n
(14,114 )Net increase (decrease) in cash and cash equivalents $ 90,560$ (1,914 )<\/p>\n
Off-Balance Sheet Arrangements<\/p>\n
As of June 28, 2020, we did not have any off-balance sheet arrangements.<\/p>\n
Critical Accounting Policies and Estimates<\/p>\n
Edgar Online, source Glimpses<\/p>\n
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Original post:<\/p>\n
Ruth Hospitality : RUTHS HOSPITALITY GROUP, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q) -...<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Forward-Looking Statements In response to the business disruption caused by the COVID-19 outbreak, we havetaken the following actions. - Due to the government mandates regarding limited or no in-restaurant dining due to COVID-19, we are leveraging our Ruth's Anywhere program to enhance revenue in restaurants that have open dining rooms or in markets where take-out and delivery sales are sufficient to cover the costs of management staffing those locations. Continue reading