Note 14 - Supplemental Condensed Consolidating Financial Statements
 6 Months Ended
Dec. 01, 2015
Notes to Financial Statements  
Condensed Financial Statements [Text Block]
NOTE 14 – SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
 
As discussed in Note 6 to the Condensed Consolidated Financial Statements, the Senior Notes held by Ruby Tuesday, Inc. (the “Parent”) 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 December 1, 2015
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
                                
Cash and cash equivalents
   $ 44,962     $ 289     $ -     $ 45,251  
Accounts receivable
     1,646       3,982       -       5,628  
Inventories
     18,310       7,472       -       25,782  
Income tax receivable
     163,698       -       (161,628
)
     2,070  
Other current assets
     18,457       2,410    
–
       20,867  
Total current assets
     247,073       14,153       (161,628
)
     99,598  
                                 
Property and equipment, net
     536,762       195,658       -       732,420  
Deferred income taxes, net
     4,231       (1,870
)
     -       2,361  
Investment in subsidiaries
     126,410       -       (126,410
)
     -  
Due from/(to) subsidiaries
     81,553       221,364       (302,917
)
     -  
Other assets
     42,435       7,304       -       49,739  
Total assets
   $ 1,038,464     $ 436,609     $ (590,955
)
   $ 884,118  
                                 
Liabilities & Shareholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
                                
Accounts payable
   $ 10,155     $ 2,639     $ -     $ 12,794  
Accrued and other current liabilities
     42,761       29,608       -       72,369  
Current maturities of long-term debt, including capital leases
     (1,034
)
     2,901       -       1,867  
Income tax payable
     -       161,628       (161,628
)
     -  
Deferred income taxes, net
     4,230       (1,869
)
     -       2,361  
Total current liabilities
     56,112       194,907       (161,628
)
     89,391  
                                 
Long-term debt and capital leases, less current maturities
     210,894       19,155       -       230,049  
Due to/(from) subsidiaries
     221,364       81,553       (302,917
)
     -  
Other deferred liabilities
     103,272       14,584       -       117,856  
Total liabilities
     591,642       310,199       (464,545
)
     437,296  
                                 
Shareholders’ equity:
                                
Common stock
     620       -       -       620  
Capital in excess of par value
     84,641       -       -       84,641  
Retained earnings
     372,039       126,410       (126,410
)
     372,039  
Accumulated other comprehensive loss
     (10,478
)
     -       -       (10,478
)
Total shareholders’ equity
     446,822       126,410       (126,410
)
     446,822  
                                 
Total liabilities & shareholders’ equity
   $ 1,038,464     $ 436,609     $ (590,955
)
   $ 884,118  
 
 
Condensed Consolidating Balance Sheet
As of June 2, 2015 (as adjusted)
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
                                
Cash and cash equivalents
   $ 75,034     $ 297     $ -     $ 75,331  
Accounts receivable
     1,557       3,730       -       5,287  
Inventories
     14,581       5,830       -       20,411  
Income tax receivable
     153,146       -       (153,146
)
     -  
Other current assets
     15,543       2,308       -       17,851  
Total current assets
     259,861       12,165       (153,146
)
     118,880  
                                 
Property and equipment, net
     554,089       198,085       -       752,174  
Investment in subsidiaries
     128,824       -       (128,824
)
     -  
Due from/(to) subsidiaries
     66,019       215,373       (281,392
)
     -  
Other assets
     44,118       10,280       -       54,398  
Total assets
   $ 1,052,911     $ 435,903     $ (563,362
)
   $ 925,452  
                                 
Liabilities & Shareholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
                                
Accounts payable
   $ 18,533     $ 4,472     $ -     $ 23,005  
Accrued and other current liabilities
     42,458       33,764       -       76,222  
Current maturities of long-term debt, including capital leases
     (994
)
     11,072       -       10,078  
Income tax payable
     -       154,215       (153,146
)
     1,069  
Deferred income taxes, net
     2,839       (2,832
)
     -       7  
Total current liabilities
     62,836       200,691       (153,146
)
     110,381  
                                 
Long-term debt and capital leases, less current maturities
     210,382       20,635       -       231,017  
Deferred income taxes, net
     (3,865
)
     5,307       -       1,442  
Due to/(from) subsidiaries
     215,373       66,019       (281,392
)
     -  
Other deferred liabilities
     102,602       14,427       -       117,029  
Total liabilities
     587,328       307,079       (434,538
)
     459,869  
                                 
Shareholders’ equity:
                                
Common stock
     621       -       -       621  
Capital in excess of par value
     83,870       -       -       83,870  
Retained earnings
     392,032       128,824       (128,824
)
     392,032  
Accumulated other comprehensive loss
     (10,940
)
     -       -       (10,940
)
Total shareholders’ equity
     465,583       128,824       (128,824
)
     465,583  
                                 
Total liabilities & shareholders’ equity
   $ 1,052,911     $ 435,903     $ (563,362
)
   $ 925,452  
 
Condensed Consolidating Statement of Operations and
Comprehensive Loss
For the Thirteen Weeks Ended December 1, 2015
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
Revenue:
                                
Restaurant sales and operating revenue
   $ 187,112     $ 72,218     $ -     $ 259,330  
Franchise revenue
     115       1,511       -       1,626  
      187,227       73,729       -       260,956  
                                 
Operating costs and expenses:
                                
Cost of goods sold
     50,775       19,530       -       70,305  
Payroll and related costs
     64,917       27,367       -       92,284  
Other restaurant operating costs
     41,024       15,361       -       56,385  
Depreciation and amortization
     9,170       3,766       -       12,936  
Selling, general, and administrative
     15,799       12,049       -       27,848  
Intercompany selling, general, and administrative allocations
     10,336       (10,336
)
     -       -  
Closures and impairments, net
     9,498       575       -       10,073  
Trademark impairment
     -       1,999       -       1,999  
Equity in earnings of subsidiaries
     (1,265
)
     -       1,265       -  
Interest expense, net
     4,652       453       -       5,105  
Intercompany interest expense/(income)
     3,016       (3,016
)
     -       -  
      207,922       67,748       1,265       276,935  
                                 
(Loss)/income before income taxes
     (20,695
)
     5,981       (1,265
)
     (15,979
)
(Benefit)/provision for income taxes
     (4,896
)
     4,716       -       (180
)
                                 
Net (loss)/income
   $ (15,799
)
   $ 1,265     $ (1,265
)
   $ (15,799
)
                                 
Other comprehensive income:
                                
Pension liability reclassification
     506       -       -       506  
Total comprehensive (loss)/income
   $ (15,293
)
   $ 1,265     $ (1,265
)
   $ (15,293
)
 
 
Condensed Consolidating Statement of Operations and
Comprehensive Loss
For the Twenty-Six Weeks Ended December 1, 2015
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
Revenue:
                                
Restaurant sales and operating revenue
   $ 388,528     $ 148,709     $ -     $ 537,237  
Franchise revenue
     130       3,069       -       3,199  
      388,658       151,778       -       540,436  
                                 
Operating costs and expenses:
                                
Cost of goods sold
     106,003       40,543       -       146,546  
Payroll and related costs
     132,258       55,361       -       187,619  
Other restaurant operating costs
     86,226       32,366       -       118,592  
Depreciation and amortization
     18,297       7,445       -       25,742  
Selling, general, and administrative
     36,388       20,856       -       57,244  
Intercompany selling, general, and administrative allocations
     21,462       (21,462
)
     -       -  
Closures and impairments, net
     12,087       698       -       12,785  
Trademark impairment
     -       1,999       -       1,999  
Equity in earnings of subsidiaries
     (13,231
)
     -       13,231       -  
Interest expense, net
     9,250       1,855       -       11,105  
Intercompany interest expense/(income)
     5,991       (5,991
)
     -       -  
      414,731       133,670       13,231       561,632  
                                 
(Loss)/income before income taxes
     (26,073
)
     18,108       (13,231
)
     (21,196
)
(Benefit)/provision for income taxes
     (6,080
)
     4,877       -       (1,203
)
                                 
Net (loss)/income
   $ (19,993
)
   $ 13,231     $ (13,231
)
   $ (19,993
)
                                 
Other comprehensive income:
                                
Pension liability reclassification
     462       -       -       462  
Total comprehensive (loss)/income
   $ (19,531
)
   $ 13,231     $ (13,231
)
   $ (19,531
)
 
Condensed Consolidating Statement of Operations and
Comprehensive Loss
For the Thirteen Weeks Ended December 2, 2014 (as adjusted)
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
Revenue:
                                
Restaurant sales and operating revenue
   $ 188,572     $ 72,634       -     $ 261,206  
Franchise revenue
     38       1,415       -       1,453  
      188,610       74,049       -       262,659  
                                 
Operating costs and expenses:
                                
Cost of goods sold
     51,718       19,928       -       71,646  
Payroll and related costs
     66,348       27,616       -       93,964  
Other restaurant operating costs
     43,417       16,099       -       59,516  
Depreciation and amortization
     9,423       3,696       -       13,119  
Selling, general, and administrative
     16,548       10,744       -       27,292  
Intercompany selling, general, and administrative allocations
     10,473       (10,473
)
     -       -  
Closures and impairments, net
     1,073       2       -       1,075  
Equity in earnings of subsidiaries
     (4,326
)
     -       4,326       -  
Interest expense, net
     4,736       1,179       -       5,915  
Intercompany interest expense/(income)
     2,998       (2,998
)
     -       -  
      202,408       65,793       4,326       272,527  
                                 
(Loss)/income before income taxes
     (13,798
)
     8,256       (4,326
)
     (9,868
)
(Benefit)/provision for income taxes
     (4,525
)
     3,930       -       (595
)
                                 
Net (loss)/income
   $ (9,273
)
   $ 4,326     $ (4,326
)
   $ (9,273
)
                                 
Other comprehensive loss:
                                
Pension liability reclassification
     464       -       -       464  
Total comprehensive (loss)/income
   $ (8,809
)
   $ 4,326     $ (4,326
)
   $ (8,809
)
 
Condensed Consolidating Statement of Operations and
Comprehensive Loss
For the Twenty-Six Weeks Ended December 2, 2014 (as adjusted)
(In thousands)
 
 
 
Parent
 
 
Guarantor
 
 
Eliminations
 
 
Consolidated
 
Revenue:
                                
Restaurant sales and operating revenue
   $ 391,123     $ 149,540     $ -     $ 540,663  
Franchise revenue
     184       2,994       -       3,178  
      391,307       152,534       -       543,841  
                                 
Operating costs and expenses:
                                
Cost of goods sold
     106,248       40,545       -       146,793  
Payroll and related costs
     134,390       55,416       -       189,806  
Other restaurant operating costs
     86,749       31,985       -       118,734  
Depreciation and amortization
     18,890       7,468       -       26,358  
Selling, general, and administrative
     36,769       21,424       -       58,193  
Intercompany selling, general, and administrative allocations
     21,615       (21,615 )     -       -  
Closures and impairments, net
     2,304       253       -       2,557  
Equity in earnings of subsidiaries
     (12,107 )     -       12,107       -  
Interest expense, net
     9,247       2,090       -       11,337  
Intercompany interest expense/(income)
     5,890       (5,890 )     -       -  
      409,995       131,676       12,107       553,778  
                                 
(Loss)/income before income taxes
     (18,688 )     20,858       (12,107 )     (9,937 )
(Benefit)/provision for income taxes
     (11,980 )     8,751       -       (3,229 )
                                 
Net (loss)/income
   $ (6,708 )   $ 12,107     $ (12,107 )   $ (6,708 )
                                 
Other comprehensive loss:
                                
Pension liability reclassification
     927       -       -       927  
Total comprehensive (loss)/income
   $ (5,781 )   $ 12,107     $ (12,107 )   $ (5,781 )
 
Condensed Consolidating Statement of Cash Flows
For the Twenty-Six Weeks Ended December 1, 2015
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
                                 
Net cash (used)/provided by operating activities
   $ (24,693
)
   $ 30,215     $ (9,653
)
   $ (4,131
)
                                 
Investing activities:
                                
Purchases of property and equipment
     (15,296
)
     (4,992
)
     -       (20,288
)
Proceeds from disposal of assets
     3,665       -       -       3,665  
Other, net
     313       -       -       313  
Net cash used by investing activities
    (11,318
)
     (4,992
)
     -       (16,310
)
                                 
Financing activities:
                                
Principal payments on long-term debt
     (15
)
     (9,586
)
     -       (9,601
)
Stock repurchases
     (9
)
     -       -       (9
)
Payments for debt issuance costs
    (29
)
     -       -       (29
)
Intercompany transactions
     5,991       (15,644
)
     9,653       -  
Net cash provided/(used) by financing activities
     5,938       (25,230
)
     9,653       (9,639
)
                                 
Decrease in cash and cash equivalents
     (30,073
)
     (7
)
     -       (30,080
)
Cash and cash equivalents:
                                
Beginning of year
     75,034       297       -       75,331  
End of quarter
   $ 44,961     $ 290     $ -     $ 45,251  
 
Condensed Consolidating Statement of Cash Flows
For the Twenty-Six Weeks Ended December 2, 2014
(In thousands)
 
 
 
Parent
 
 
Guarantors
 
 
Eliminations
 
 
Consolidated
 
                                 
Net cash provided by operating activities
   $ 25,640     $ 43,870     $ (59,553
)
   $ 9,957  
                                 
Investing activities:
                                
Purchases of property and equipment
     (11,002
)
     (2,819
)
     -       (13,821
)
Proceeds from disposal of assets
     4,607       997       -       5,604  
Other, net
     1,146       135       -       1,281  
Net cash used by investing activities
    (5,249
)
     (1,687
)
     -       (6,936
)
                                 
Financing activities:
                                
Principal payments on long-term debt
     (16
)
     (6,250
)
     -       (6,266
)
Stock repurchases
     (55
)
     -       -       (55
)
Payments for debt issuance costs
     (75
)
     -       -       (75
)
Proceeds from exercise of stock options
     197       -       -       197  
Excess tax benefits from share-based compensation
     22       -       -       22  
Intercompany transactions
     (23,610
)
     (35,943
)
     59,553       -  
Net cash used by financing activities
     (23,537
)
     (42,193
)
     59,553       (6,177
)
                                 
Decrease in cash and cash equivalents
     (3,146
)
     (10
)
     -       (3,156
)
Cash and cash equivalents:
                                
Beginning of year
     51,012       314       -       51,326  
End of quarter
   $ 47,866     $ 304     $ -     $ 48,170