RARE Hospitality International Reports Financial Results for Third Quarter Fiscal 2006.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 third quarter and nine months ended October 1, 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 third quarter were $0.13, including 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. and other charges of $0.14, compared with $0.28 for the third quarter of fiscal 2005. Excluding these charges, adjusted net earnings from continuing operations were $0.27 per diluted share for the third quarter of fiscal 2006. 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. Philip J. Hickey, Jr., Chairman and Chief Executive Officer of RARE, commented, "Our third quarter results reflect a difficult economic environment; however, we are encouraged because operating momentum and performance improved sequentially each month throughout the quarter. The substantial decline in gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by prices from their record high levels and the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of interest rates should improve the outlook for casual dining sales growth in the fourth quarter." Other results for the third quarter and first nine months of fiscal 2006 include: * Revenues for the third quarter of fiscal 2006, a 13-week period, increased 13.2% to $228,059,000 from $201,489,000 for the third quarter of fiscal 2005, a 13-week period. Both of these comparable quarters 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. * Net earnings from continuing operations for the third quarter of fiscal 2006 were $4,507,000, or $0.13 per diluted share, including a previously announced Financial Accounting Standard ("FAS") No. 144 asset impairment charge of $4,946,000 ($3,057,000 or $0.09 per diluted share after tax), and the impact of the adoption of both 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. * Due to the decision to exit the Bugaboo Creek business, the Company reported a loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $8,006,000, or $0.23 per diluted share, for the third quarter of fiscal 2006. This loss included a FAS No. 144 asset impairment charge of $12,280,000 ($7,982,000 or $0.23 per diluted share after tax). These results compared with a loss from discontinued operations of $170,000 for the third quarter of fiscal 2005. * Primarily due to the loss associated with the decision to exit the Bugaboo Creek business, the Company's net loss for the third quarter of fiscal 2006 was $3,499,000, or $0.10 per diluted share, compared with net earnings of $9,588,000, or $0.28 per diluted share, for the third quarter of fiscal 2005. * Revenues for the first nine months of fiscal 2006, a 40-week period, increased 17.8% to $727,045,000 from $617,066,000 for the first nine months of fiscal 2005, a 39-week period. Both of these comparable periods exclude revenues from the Bugaboo Creek concept. * Net earnings from continuing operations for the first nine months of 2006 were $34,544,000, or $1.00 per diluted share, which included the impact of FAS No. 144, FAS No.123R and FASB Staff Position 13-1, totaling $0.23 per diluted share for the period. Excluding this impact, adjusted net earnings from continuing operations for the first nine months of fiscal 2006 were $1.23 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 revenues for the third quarter of fiscal 2006 were $180,414,000, up 11.8% from the third quarter of fiscal 2005. This increase is attributable to the growth in the number of the Company's LongHorn Steakhouse restaurants in operation to a total of 261 at the end of the third quarter of fiscal 2006, an increase of 13.0% from 231 at the end of the third quarter of fiscal 2005. Longhorn's 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. for the third quarter of fiscal 2006 declined 0.3% from the third quarter of 2005. Having opened eight restaurants during the third quarter of fiscal 2006, 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. plans to open five additional restaurants during the current quarter, bringing the total planned openings for all of fiscal 2006 to 30 Company-owned restaurants. 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. - Revenues rose 20.0% for the Capital Grille for the third quarter of fiscal 2006 compared with the third quarter of fiscal 2005, driven in part by growth in same-store sales for the comparable periods of 7.4%. As a result of this performance, the Capital Grille has now produced growth in same-store sales for 18 consecutive quarters. The Capital Grille opened two restaurants during the third quarter of 2006, raising the total number in operation to 26 at the end of the quarter compared with 22 at the end of the third quarter of fiscal 2005. The Capital Grille has opened three restaurants in fiscal 2006 and has completed its development plans for the year. Financial Guidance Fourth-Quarter Fiscal 2006 * RARE today established its guidance for net earnings from continuing operations per diluted share for the fourth quarter of fiscal 2006 in a range of $0.41 to $0.43, which includes the impact of the adoption of both FAS No.123R, Share-Based Payment, and FASB Staff Position 13-1, Construction Period Rent, expected to total $0.05 per diluted share for the quarter. The Company's guidance for the fourth quarter of fiscal 2006 is based on an assumed range of same-store sales of 1% to 2% for LongHorn Steakhouse and 3% to 4% for the Capital Grille, as well as the implementation of the Company's restaurant opening plans discussed above. * Excluding the impact of the adoption of FAS No.123R and FASB Staff Position 13-1, RARE's guidance for adjusted net earnings from continuing operations per diluted share for the fourth quarter of fiscal 2006 is in a range of $0.46 to $0.48. Full-Year Fiscal 2006 * Based on its performance for the first nine months of fiscal 2006 and its outlook for the fourth quarter of the fiscal year, RARE today provided guidance for net earnings from continuing operations per diluted share for fiscal 2006, a 53-week period, in a range of $1.41 to $1.43. This guidance includes the impact of the FAS No. 144 asset impairment charge of $0.09 incurred in the third quarter of fiscal 2006, as well as the adoption of both FAS No.123R and FASB Staff Position 13-1, expected to total $0.18 per diluted share for fiscal 2006. * Excluding the impact of the FAS No. 144 charge and the adoption of FAS No.123R and FASB Staff Position 13-1, RARE's guidance for adjusted net earnings from continuing operations per diluted share for fiscal 2006 is in a range of $1.68 to $1.70. First-Quarter Fiscal 2007 * RARE also today established its guidance for net earnings from continuing operations per diluted share for the first quarter of fiscal 2007 in a range of $0.50 to $0.52. The Company's guidance for the first quarter of fiscal 2007 is based on an assumed range of same-store sales of 1% to 2% for LongHorn Steakhouse and 3% to 4% for the Capital Grille. The Company expects to open 32 to 34 LongHorn Steakhouse restaurants and four Capital Grille restaurants during 2007. Nine to ten LongHorn Steakhouses are expected to open during the first quarter. 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, October 26, 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 January 8, 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 ability of the Company to issue the proposed $125 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. on acceptable terms and to maintain compliance with the covenants included in such financing; the ability of the Company to 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. its shares in the expected number and at prices that would be accretive to the Company's financial results; 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 disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. 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, 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 328 restaurants, including 268 LongHorn Steakhouse restaurants, 26 Capital Grille restaurants and 32 Bugaboo Creek Steak House restaurants. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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