Note 13 - Supplemental Condensed Consolidating Financial Statements
 12 Months Ended
Jun. 06, 2017
Notes to Financial Statements  
Condensed Financial Statements [Text Block]
13.
Supplemental Condensed Consolidating Financial Statements
 
As discussed in Note
6
to the Consolidated Financial Statements, the Senior Notes are a liability of Ruby Tuesday, Inc. (the “Parent”) and are guaranteed on a senior unsecured basis by our existing and future domestic restricted subsidiaries, subject to certain exceptions (the “Guarantors”). Each of the Guarantors is wholly-owned by Ruby Tuesday, Inc.
None
of the few remaining subsidiaries of Ruby Tuesday, Inc., which were primarily created to hold liquor license assets, guarantee the Senior Notes (the “Non-Guarantors”). Our Non-Guarantor subsidiaries are immaterial and are aggregated within the Parent information disclosed below.
 
The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule
3
-
10
(f) of Regulation S-
X
promulgated by the Securities and Exchange Commission, presents the condensed consolidating financial information separately for the Parent, the Guarantors, and elimination entries necessary to consolidate the Parent and Guarantors. Investments in wholly-owned subsidiaries are accounted for using the equity method for purposes of the consolidated presentation. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.
 
 
Condensed Consolidating Balance Sheet
As of
June 6, 2017
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
Assets
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Current assets:
                                
Cash and cash equivalents
   $
41,584
     $
130
     $
–
     $
41,714
  
Restricted cash
    
6,445
      
–
      
–
      
6,445
  
Accounts and other receivables
    
1,913
      
5,402
      
–
      
7,315
  
Inventories
    
12,447
      
4,731
      
–
      
17,178
  
Income tax receivable
    
175,535
      
–
      
(172,474
)
    
3,061
  
Other current assets
    
15,969
      
7,355
      
–
      
23,324
  
Total current assets
    
253,893
      
17,618
      
(172,474
)
    
99,037
  
                                 
Property and equipment, net
    
446,211
      
136,886
      
–
      
583,097
  
Investment in subsidiaries
    
51,214
      
–
      
(51,214
)
    
–
  
Due from/(to) subsidiaries
    
94,281
      
213,066
      
(307,347
)
    
–
  
Other assets
    
37,454
      
4,054
      
–
      
41,508
  
Total assets
   $
883,053
     $
371,624
     $
(531,035
)
   $
723,642
  
                                 
Liabilities & Shareholders
’ Equity
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Current liabilities:
                                
Accounts payable
   $
14,333
     $
3,237
     $
–
     $
17,570
  
Accrued and other current liabilities
    
47,796
      
33,340
      
–
      
81,136
  
                                 
Current maturities of long-term debt,
including capital leases
    
(1,157
)
    
1,525
      
–
      
368
  
Income tax payable
    
–
      
172,474
      
(172,474
)
    
–
  
Total current liabilities
    
60,972
      
210,576
      
(172,474
)
    
99,074
  
                                 
Long-term debt and capital leases,
less current maturities
    
210,243
      
3,098
      
–
      
213,341
  
Due to/(from) subsidiaries
    
213,066
      
94,281
      
(307,347
)
    
–
  
Other deferred liabilities
    
91,406
      
12,455
      
–
      
103,861
  
Total liabilities
    
575,687
      
320,410
      
(479,821
)
    
416,276
  
                                 
Shareholders
’ equity:
                                
Common stock
    
607
      
–
      
–
      
607
  
Capital in excess of par value
    
79,531
      
–
      
–
      
79,531
  
Retained earnings
    
235,210
      
51,214
      
(51,214
)
    
235,210
  
Accumulated other comprehensive loss
    
(7,982
)
    
–
      
–
      
(7,982
)
Total shareholders
’ equity
    
307,366
      
51,214
      
(51,214
)
    
307,366
  
                                 
Total liabilities & shareholders
’ equity
   $
883,053
     $
371,624
     $
(531,035
)
   $
723,642
  
 
 
Condensed Consolidating Balance Sheet
As of
May 31, 2016
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
Assets
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Current assets:
                                
Cash and cash equivalents
   $
66,831
     $
133
     $
–
     $
66,964
  
Restricted cash
    
377
      
–
      
–
      
377
  
Accounts and other receivables
    
8,102
      
4,725
      
–
      
12,827
  
Inventories
    
15,401
      
6,194
      
–
      
21,595
  
Income tax receivable
    
167,065
      
–
      
(164,062
)
    
3,003
  
Other current assets
    
11,282
      
4,868
      
–
      
16,150
  
Total current assets
    
269,058
      
15,920
      
(164,062
)
    
120,916
  
                                 
Property and equipment, net
    
501,482
      
169,768
      
–
      
671,250
  
Investment in subsidiaries
    
98,929
      
–
      
(98,929
)
    
–
  
Due from/(to) subsidiaries
    
76,208
      
213,816
      
(290,024
)
    
–
  
Other assets
    
40,626
      
5,125
      
–
      
45,751
  
Total assets
   $
986,303
     $
404,629
     $
(553,015
)
   $
837,917
  
                                 
Liabilities & Shareholders' Equity
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Current liabilities:
                                
Accounts payable
   $
17,405
     $
4,736
     $
–
     $
22,141
  
Accrued and other current liabilities
    
35,674
      
29,957
      
–
      
65,631
  
Current maturities of long-term debt,
including capital leases
    
(1,067
)
    
11,001
      
–
      
9,934
  
Income tax payable
    
–
      
164,062
      
(164,062
)
    
–
  
Total current liabilities
    
52,012
      
209,756
      
(164,062
)
    
97,706
  
                                 
Long-term debt and capital leases,
less current maturities
    
209,058
      
4,745
      
–
      
213,803
  
Due to/(from) subsidiaries
    
213,816
      
76,208
      
(290,024
)
    
–
  
Other deferred liabilities
    
103,637
      
14,991
      
–
      
118,628
  
Total liabilities
    
578,523
      
305,700
      
(454,086
)
    
430,137
  
                                 
Shareholders' equity:
                                
Common stock
    
601
      
–
      
–
      
601
  
Capital in excess of par value
    
75,938
      
–
      
–
      
75,938
  
Retained earnings
    
341,350
      
98,929
      
(98,929
)
    
341,350
  
Accumulated other comprehensive loss
    
(10,109
)
    
–
      
–
      
(10,109
)
Total shareholders' equity
    
407,780
      
98,929
      
(98,929
)
    
407,780
  
                                 
Total liabilities & shareholders' equity
   $
986,303
     $
404,629
     $
(553,015
)
   $
837,917
  
 
 
Condensed Consolidating Statement of Operations and
Comprehensive (Loss)/Income
For the Fiscal Year Ended
June 6, 2017
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
Revenue:
                                
Restaurant sales and operating revenue
   $
694,398
     $
254,005
     $
–
     $
948,403
  
Franchise revenue
    
10
      
3,558
      
–
      
3,568
  
Total revenue
    
694,408
      
257,563
      
–
      
951,971
  
                                 
Operating costs and expenses:
                                
Cost of goods sold
    
196,515
      
72,107
      
–
      
268,622
  
Payroll and related costs
    
242,041
      
96,877
      
–
      
338,918
  
Other restaurant operating costs
    
146,391
      
52,305
      
–
      
198,696
  
Depreciation and amortization
    
30,673
      
11,106
      
–
      
41,779
  
General and administrative expenses
    
37,929
      
29,080
      
–
      
67,009
  
Marketing expenses, net
    
40,264
      
13,876
      
–
      
54,140
  
Intercompany general
and
administrative allocations
    
38,558
      
(38,558
)
    
–
      
–
  
Closures and impairments, net
    
47,191
      
22,617
      
–
      
69,808
  
Equity in earnings of subsidiaries
    
(628
)
    
–
      
628
      
–
  
Interest expense, net
    
19,973
      
882
      
–
      
20,855
  
Intercompany interest expense/(income)
    
12,050
      
(12,050
)
    
–
      
–
  
Total operating costs and expenses
    
810,957
      
248,242
      
628
      
1,059,827
  
                                 
(Loss)/income before income taxes
    
(116,549
)
    
9,321
      
(628
)
    
(107,856
)
(Benefit)/provision for income taxes
    
(10,409
)
    
8,693
      
–
      
(1,716
)
                                 
Net (loss)/income
   $
(106,140
)
   $
628
     $
(628
 )   $
(106,140
)
                                 
Other comprehensive income:
                                
Pension liability reclassification
    
2,127
      
–
      
–
      
2,127
  
Total comprehensive (loss)/income
   $
(104,013
)
   $
628
     $
(628
)
   $
(104,013
)
 
 
Condensed Consolidating Statement of Operations and
Comprehensive (Loss)/Income
For the Fiscal Year Ended
May 31, 2016
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
Revenue:
                                
Restaurant sales and operating revenue
   $
785,147
     $
299,887
     $
–
     $
1,085,034
  
Franchise revenue
    
245
      
5,949
      
–
      
6,194
  
Total revenue
    
785,392
      
305,836
      
–
      
1,091,228
  
                                 
Operating costs and expenses:
                                
Cost of goods sold
    
216,121
      
82,408
      
–
      
298,529
  
Payroll and related costs
    
263,499
      
111,062
      
–
      
374,561
  
Other restaurant operating costs
    
167,051
      
62,467
      
–
      
229,518
  
Depreciation and amortization
    
36,387
      
14,971
      
–
      
51,358
  
General
and administrative expenses
    
32,264
      
25,927
      
–
      
58,191
  
Marketing expenses, net
    
37,748
      
13,688
      
–
      
51,436
  
Intercompany general
and
administrative allocations
    
42,870
      
(42,870
)
    
–
      
–
  
Closures and impairments, net
    
40,683
      
23,997
      
–
      
64,680
  
Equity in earnings of subsidiaries
    
(15,212
)
    
–
      
15,212
      
–
  
Gain on sales of Lime Fresh Mexican Grill assets
    
(5,937
)
    
–
      
–
      
(5,937
)
Interest expense, net
    
18,329
      
3,425
      
–
      
21,754
  
Intercompany interest expense/(income)
    
12,143
      
(12,143
)
    
–
      
–
  
Total operating costs and expenses
    
845,946
      
282,932
      
15,212
      
1,144,090
  
                                 
(Loss)/income before income taxes
    
(60,554
)
    
22,904
      
(15,212
)
    
(52,862
)
(Benefit)/provision for income taxes
    
(9,872
)
    
7,692
      
–
      
(2,180
)
                                 
Net (loss)/income
   $
(50,682
)
   $
15,212
     $
(15,212
)
   $
(50,682
)
                                 
Other comprehensive income:
                                
Pension liability reclassification
    
831
      
–
      
–
      
831
  
Total comprehensive (loss)/income
   $
(49,851
)
   $
15,212
     $
(15,212
)
   $
(49,851
)
 
 
 
Condensed Consolidating Statement of Operations and
Comprehensive (Loss)/Income
For the Fiscal Year Ended
June 2, 2015
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
Revenue:
                                
Restaurant sales and operating revenue
   $
809,171
     $
310,971
     $
–
     $
1,120,142
  
Franchise revenue
    
238
      
6,186
      
–
      
6,424
  
Total revenue
    
809,409
      
317,157
      
–
      
1,126,566
  
                                 
Operating costs and expenses:
                                
Cost of goods sold
    
220,537
      
84,769
      
–
      
305,306
  
Payroll and related costs
    
270,535
      
112,726
      
–
      
383,261
  
Other restaurant operating costs
    
175,819
      
66,290
      
–
      
242,109
  
Depreciation and amortization
    
37,466
      
14,925
      
–
      
52,391
  
General
and administrative expenses
    
39,261
      
26,646
      
–
      
65,907
  
Marketing expenses, net
    
36,157
      
13,263
      
–
      
49,420
  
Intercompany general
and
administrative allocations
    
44,768
      
(44,768
)
    
–
      
–
  
Closures and impairments, net
    
7,914
      
2,628
      
–
      
10,542
  
Equity in earnings of subsidiaries
    
(28,148
)
    
–
      
28,148
      
–
  
Interest expense, net
    
18,489
      
4,246
      
–
      
22,735
  
Intercompany interest expense/(income)
    
12,009
      
(12,009
)
    
–
      
–
  
Total operating costs and expenses
    
834,807
      
268,716
      
28,148
      
1,131,671
  
                                 
(Loss)/income before income taxes
    
(25,398
)
    
48,441
      
(28,148
)
    
(5,105
)
(Benefit)/provision for income taxes
    
(22,204
)
    
20,293
      
–
      
(1,911
)
Net (loss)/income
   $
(3,194
)
   $
28,148
     $
(28,148
)
   $
(3,194
)
                                 
Other comprehensive loss:
                                
Pension liability reclassification, net of tax
    
(40
)
    
–
      
–
      
(40
)
Total comprehensive (loss)/income
   $
(3,234
)
   $
28,148
     $
(28,148
)
   $
(3,234
)
 
 
Condensed Consolidating Statement of Cash Flows
For the Fiscal Year Ended
June 6, 2017
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
                                 
Net cash
(used in) provided by operating activities
   $
(18,767
)
   $
48,926
     $
(49,093
)
   $
(18,934
)
                                 
Investing activities:
                                
Purchases of property and equipment
    
(26,065
)
    
(7,444
)
    
–
      
(33,509
)
Proceeds from disposal of assets
    
17,051
      
17,749
      
–
      
34,800
  
Insurance proceeds from property claims
    
462
      
202
      
–
      
664
  
Reductions in deferred compensation plan assets
    
1,890
      
–
      
–
      
1,890
  
Other, net
    
2,842
      
–
      
–
      
2,842
  
Net cash
(used in) provided by investing activities
    
(3,820
)
    
10,507
      
–
      
6,687
  
                                 
Financing activities:
                                
Principal payments on long-term debt
    
7
      
(11,093
)
    
–
      
(11,086
)
Stock repurchases
    
(26
)
    
–
      
–
      
(26
)
Payments for debt issuance costs
    
(1,891
)
    
–
      
–
      
(1,891
)
Dividends paid
    
–
      
(48,343
)
    
48,343
      
–
  
Net transactions with related entities
    
(750
)
    
–
      
750
      
–
  
Net cash used
in financing activities
    
(2,660
)
    
(59,436
)
    
49,093
      
(13,003
)
                                 
Decrease in cash and cash equivalents
    
(25,247
)
    
(3
)
    
–
      
(25,250
)
Cash and cash equivalents:
                                
Beginning of fiscal year
    
66,831
      
133
      
–
      
66,964
  
End of fiscal year
   $
41,584
     $
130
     $
–
     $
41,714
  
 
 
Condensed Consolidating Statement of Cash Flows
For the Fiscal Year Ended
May 31, 2016
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
                                 
Net cash
(used in) provided by operating activities
   $
15,384
     $
71,061
     $
(46,665
)
   $
39,780
  
                                 
Investing activities:
                                
Purchases of property and equipment
    
(24,174
)
    
(10,253
)
    
–
      
(34,427
)
Proceeds from disposal of assets
    
11,701
      
–
      
–
      
11,701
  
Insurance proceeds from property claims
    
350
      
–
      
–
      
350
  
Reductions in deferred compensation plan assets
    
1,049
      
–
      
–
      
1,049
  
Other, net
    
1,572
      
–
      
–
      
1,572
  
Net cash used
in investing activities
    
(9,502
)
    
(10,253
)
    
–
      
(19,755
)
                                 
Financing activities:
                                
Principal payments on long-term debt
    
(2,379
)
    
(15,864
)
    
–
      
(18,243
)
Stock repurchases
    
(10,077
)
    
–
      
–
      
(10,077
)
Payments for debt issuance costs
    
(32
)
    
–
      
–
      
(32
)
Dividends paid
    
–
      
(45,108
)
    
45,108
      
–
  
Net transactions with related entities
    
(1,557
)
    
–
      
1,557
      
–
  
Net cash
(used in) provided by financing activities
    
(14,045
)
    
(60,972
)
    
46,665
      
(28,352
)
                                 
Decrease in cash and cash equivalents
    
(8,163
)
    
(164
)
    
–
      
(8,327
)
Cash and cash equivalents:
                                
Beginning of fiscal year
    
74,994
      
297
      
–
      
75,291
  
End of fiscal year
   $
66,831
     $
133
     $
–
     $
66,964
  
 
 
 
Condensed Consolidating Statement of Cash Flows
For the Fiscal Year Ended
June 2, 2015
(In thousands)
 
   
Parent
    
Guarantors
    
Eliminations
    
Consolidated
  
                                 
Net cash provided by
(used in) operating activities
   $
63,219
     $
77,717
     $
(85,882
)
   $
55,054
  
                                 
Investing activities:
                                
Purchases of property and equipment
    
(23,326
)
    
(7,684
)
    
–
      
(31,010
)
Proceeds from disposal of assets
    
10,213
      
1,047
      
–
      
11,260
  
Insurance proceeds from property claims
    
10
      
135
      
–
      
145
  
Reductions in deferred compensation plan assets
    
1,318
      
–
      
–
      
1,318
  
Other, net
    
790
      
–
      
–
      
790
  
Net cash used
in investing activities
    
(10,995
)
    
(6,502
)
    
–
      
(17,497
)
                                 
Financing activities:
                                
Principal payments on long-term debt
    
4
      
(13,642
)
    
–
      
(13,638
)
Stock repurchases
    
(73
)
    
–
      
–
      
(73
)
Payments for debt issuance costs
    
(293
)
    
–
      
–
      
(293
)
Proceeds from exercise of stock options
    
556
      
–
      
–
      
556
  
Excess tax benefits from share-based
compensation
    
39
      
–
      
–
      
39
  
Dividends paid
    
–
      
(57,590
)
    
57,590
      
–
  
Net
transactions with related entities
    
(28,292
)
    
–
      
28,292
      
–
  
Net cash
(used in) provided by financing activities
    
(28,059
)
    
(71,232
)
    
85,882
      
(13,409
)
                                 
Increase/(decrease) in cash and cash equivalents
    
24,165
      
(17
)
    
–
      
24,148
  
Cash and cash equivalents:
                                
Beginning of fiscal year
    
50,829
      
314
      
–
      
51,143
  
End of fiscal year
   $
74,994
     $
297
     $
–
     $
75,291