RARE Hospitality International Earns $0.46 Per Diluted Share from Continuing Operations for 4th-Quarter 2006.* Same-Store Sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. Growth and Restaurant Openings Produce Revenue Increase of 17.0% * Completes Repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. Of $125 Million In Common Stock * Establishes Fiscal 2007 Guidance and Revises First-Quarter Guidance ATLANTA -- RARE Hospitality International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : RARE) today announced financial results for the fourth quarter and year ended December 31, 2006. Net earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the fourth quarter of fiscal 2006 were $0.46 compared with $0.42 for the fourth quarter of fiscal 2005. Excluding share-based compensation and other charges, adjusted net earnings from continuing operations were $0.51 per diluted share for the fourth quarter of fiscal 2006 compared with $0.44 for the fourth quarter of fiscal 2005. See page 6 for a reconciliation of all non-GAAP measurements to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial results discussed in this news release. "RARE produced better than anticipated results for the fourth quarter of fiscal 2006," remarked Philip J. Hickey, Jr., Chairman and Chief Executive Officer of RARE. "Our results primarily reflected stronger revenues for the month of December resulting in better margins than assumed in our earnings guidance, which was in a range of $0.41 to $0.43 for the quarter." Results for the fourth quarter of fiscal 2006 included: * Growth in revenues of 17.0% to $259,869,000 for the quarter from $222,200,000 for the fourth quarter of fiscal 2005. Results for each quarter exclude revenues from the Bugaboo Creek Steak House Bugaboo Creek Steak House is an American steak house with locations in ten states. It is decorated as a hunting lodge in the Canadian Rockies and has won numerous 'Best Steak House' awards from CitySearch and AOL. concept, which, because of the Company's previously announced decision to exit the concept, are classified as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . * Net earnings from continuing operations for the quarter of $15,453,000, or $0.46 per diluted share, compared with $14,429,000, or $0.42 per diluted share for the fourth quarter of fiscal 2005. For the fourth quarter of fiscal 2006, these results included the negative impact of the adoption of Financial Accounting Standard ("FAS") No.123R, Share-Based Payment, and Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). ("FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ") Staff Position 13-1, Construction Period Rent, together totaling $0.05 per diluted share for the quarter. For the fourth quarter of fiscal 2005, these results included the negative impact of a FAS 144 asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge and the adoption of FASB Staff Position 13-1, together totaling $0.02 per diluted share for the quarter. * Loss from discontinued operations, net of tax, of $3,212,000, or $0.10 per diluted share, for the quarter compared with a loss from discontinued operations, net of tax, of $1,522,000, or $0.04 per diluted share, for the fourth quarter of fiscal 2005. For the fourth quarter of fiscal 2006, these results include a FAS 144 asset impairment charge of $6,720,000 ($4,368,000 or $0.13 per diluted share after tax). * Net earnings of $12,241,000, or $0.36 per diluted share, for the fourth quarter of fiscal 2006 compared with $12,907,000, or $0.38 per diluted share, for the fourth quarter of fiscal 2005. Results for fiscal 2006 included: * Revenues of $986,914,000 for fiscal 2006, a 53-week year, which increased 17.6% from $839,266,000 for fiscal 2005, a 52-week year. * Net earnings from continuing operations of $49,997,000, or $1.45 per diluted share, for fiscal 2006 compared with $52,377,000, or $1.50 per diluted share, for fiscal 2005. For fiscal 2006, these results included the negative impact of FAS 123R, FAS 144 and FASB Staff Position 13-1, together totaling $0.27 per diluted share for the fiscal year, and for fiscal 2005, the negative impact of FAS 144 and FASB Staff Position 13-1, together totaling $0.03 per diluted share for the fiscal year. Adjusted net earnings from continuing operations per diluted share, excluding these items in each year, increased 13.1% to $1.73 for fiscal 2006 from $1.53 for fiscal 2005. * Including the loss from discontinued operations of $10,626,000, or $0.31 per diluted share, net earnings for fiscal 2006 were $39,371,000, or $1.14 per diluted share. Including the loss from discontinued operations of $798,000, or $0.02 per diluted share, net earnings for fiscal 2005 were $51,579,000, or $1.48 per diluted share. Operating highlights for the Company's continuing operations follow. LongHorn Steakhouse  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . - LongHorn Steakhouse produced 15.9% growth in revenues for the fourth quarter of fiscal 2006 compared to the fourth quarter of fiscal 2005, which included an increase in same-store sales of 1.5%. The concept's revenue growth also reflected an 11.8% expansion in the number of LongHorn Steakhouse restaurants in operation at the end of fiscal 2006 to 265 from 237 at the end of fiscal 2005. The Company opened five LongHorn The code name for the Windows Vista operating system. After the client version was renamed "Vista" in 2005, Longhorn referred to the server version until it was officially named Windows Server 2008 in May of 2007. See Windows Vista. restaurants during the fourth quarter and closed one. For fiscal 2006, RARE opened 30 LongHorn restaurants and closed two. The Capital Grille grille, in architecture, a system of bars, usually of decorative metalwork, forming an openwork barrier or enclosure. In its usual materials of wrought iron or bronze, it has been favored for decorative treatment in all periods. - Fourth-quarter revenues increased 21.1% for fiscal 2006 compared to fiscal 2005, driven by the combination of increased same-store sales and expansion of the number of restaurants in operation. Same-store sales rose 8.4%, The Capital Grille's nineteenth consecutive comparable-quarter increase. The Capital Grille completed fiscal 2006 with 26 restaurants in operation, compared with 23 at the end of fiscal 2005. Recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. RARE completed its previously announced recapitalization through an offering of 2.50% convertible senior notes due 2026, which raised gross proceeds for the Company of $125 million during the fourth quarter. As anticipated, RARE used the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this offering, as well as its available cash, to repurchase $125 million of the Company's outstanding common stock, the great majority of which was repurchased during the fourth quarter. RARE has approximately $20 million available for additional share repurchases under its $30 million repurchase authorization announced in July 2005. Financial Guidance First-Quarter Fiscal 2007 - Based primarily on the Company's results for the quarter to-date, RARE today is reducing its guidance for net earnings from continuing operations per diluted share for the first quarter of fiscal 2007, a 13-week period, to a range of $0.46 to $0.49, from the previous range of $0.50 to $0.52, compared with $0.48 for the first quarter of fiscal 2006, a 14-week period. The Company's guidance for the first quarter of fiscal 2007 is based on an assumed range of same-store sales of -2% to +1% for LongHorn Steakhouse and 3% to 4% for the Capital Grille. In addition, RARE plans to open nine to ten LongHorn restaurants during the first quarter of fiscal 2007. Fiscal 2007 - RARE also today established its guidance for net earnings from continuing operations per diluted share for fiscal 2007, a 52-week year, in a range of $1.62 to $1.68. Fiscal 2006 was a 53-week year. The Company's guidance for fiscal 2007 is based on an assumed range of same-store sales of 0% to 2% for LongHorn Steakhouse, 3% to 4% for Capital Grille, and on higher anticipated beef and labor costs. The Company's guidance is also based on planned openings of 32 to 34 LongHorn restaurants and four Capital Grille restaurants during the fiscal year. Of course, the statements contained in the preceding paragraphs are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , and the achievement of these targets is dependent not only on RARE's continued execution of its goals, but also on risks and uncertainties listed below that could cause actual results, performance or developments to differ materially from those expressed or implied by these forward-looking statements. Conference Call RARE Hospitality International will hold a conference call to discuss this release tomorrow, February 15, at 9:00 a.m. Eastern time. Participants will have the opportunity to listen to the conference call over the Internet by going to www.rarehospitality.com and clicking on Investor Relations Investor relations The process by which the corporation communicates with its investors. or by going to www.investorcalendar.com. Participants are encouraged to go to the selected web site at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these sites shortly after the call through the end of business on April 20, 2007. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision Statements contained in this press release concerning future results, performance or expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent, belief or current expectations of the Company and members of its management team, as well as assumptions on which such statements are based. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release. Forward-looking statements involve a number of risks and uncertainties, and other factors, that could cause actual results, performance or developments to differ materially from those expressed or implied by those forward-looking statements including the following: failure of facts to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" necessary management estimates and assumptions regarding financial and operating matters; the ability of the Company to effect the sale of its Bugaboo Creek Steak House business on acceptable terms; the Company's ability to identify and secure suitable locations for new restaurants on acceptable terms, open the anticipated number of new restaurants on time and within budget, achieve anticipated rates of same-store sales, hire and train additional restaurant personnel and integrate new restaurants into its operations; the continued implementation of the Company's business discipline over a large and growing restaurant base; increases in the cost of construction of new restaurants; unexpected increases in cost of sales or employee, pre-opening or other expenses; the economic conditions in the new markets into which the Company expands and possible uncertainties in the customer base in these areas; fluctuations in quarterly operating results; seasonality; unusual weather patterns or events; changes in customer dining patterns; the impact of any negative publicity or public attitudes related to the consumption of beef or other products sold by the Company; unforeseen increases in commodity pricing; disruption of established sources of product supply or distribution; competitive pressures from other national and regional restaurant chains The following is a list of restaurant chains. See also: Fast-food restaurant, Casual dining, List of reference tables. International
Under federal law, it is a crime to incite, assist, or engage in such conduct against the United States. INSURRECTION. and/or terrorist attacks on United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. soil; growth in the restaurant industry and the general economy; changes in monetary and fiscal policies, laws and regulations; and other risks identified from time to time in the Company's SEC reports, including the annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for 2005, Amendment No. 1 on Form 10-K/A to the Annual Report on Form 10-K, quarterly reports on Form 10-Q Form 10-Q See 10-Q. and its current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , registration statements, press releases and other communications. Any forward-looking statement speaks only as of the date it was made and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. RARE Hospitality International, Inc. currently owns, operates and franchises 334 restaurants, including 275 LongHorn Steakhouse restaurants, 26 Capital Grille restaurants and 31 Bugaboo Creek Steak House restaurants. [TABLE OMITTED] [TABLE OMITTED] |
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