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MORRISON RESTAURANTS' PROFITS GROW 22 PERCENT IN FIRST QUARTER FISCAL 1993

MORRISON RESTAURANTS' PROFITS GROW 22 PERCENT IN FIRST QUARTER FISCAL 1993
 MOBILE, Ala., Sept. 30 /PRNewswire/ -- Morrison Restaurants, Inc. (NASDAQ-NMS: MORR) today reported first quarter net income of $6,978,000, an increase of 22 percent from the same period last year.
 Sales for the first quarter grew 3 percent to $248,360,000. Late in the first quarter, Hurricane Andrew disrupted operations in 12 Ruby Tuesdays, eight L&N Seafood Grills and 19 Morrison's Cafeterias. Earnings per share for the first quarter were 28 cents vs. 23 cents a year ago, a gain of 22 percent.
 "We continue to earn consistent profitability in a tough, competitive economy," said Sandy Beall, president and chief executive officer of Morrison Restaurants Inc. "We're proud of our employees and how they've responded to the challenges of today's business environment," he commented.
 "Each operating group continued to manage key result areas to build customers, run efficient, effective operations, and deliver quality food, friendly service and outstanding price-value. Operating profit gains of 20 percent for this first quarter represent our best first quarter performance, in percentage growth terms, in over five years," he added.
 The Ruby Tuesday Group reported solid gains in revenue and operating profit. For the quarter, effective performances by Ruby Tuesday and Silver Spoon Cafe led to the 16 percent increase in operating profit for the group. Ruby Tuesday Group operating profit margins remained at 8.6 percent, identical to last year.
 Ruby Tuesday Group's first quarter sales grew 16 percent, principally due to new unit growth. During the quarter, the group opened five Ruby Tuesdays and one L&N Seafood Grill. Overall, the group operated 30 additional restaurants as compared to a year ago. "This year our restaurant openings are concentrated in the second half of the fiscal year. Our planned openings this year, primarily Ruby Tuesdays, will number about the same next quarter, strengthen in the third and further in the fourth quarter. We plan to continue openings at a strong pace next year," Beall explained.
 For the quarter, Morrison's Hospitality Group's operating profit grew 15 percent due to new and existing unit income growth and effective expense management. Sales rose 3 percent vs. last year. "Our growth in the first quarter is affected each year by summer vacation in our education business. Morrison's Hospitality's operating margins expanded .3 points to 3 percent as compared to a year ago," he mentioned.
 Morrison's Family Dining achieved significant operating profit gains of 39 percent despite a sales decline of 10 percent; it operated 11 fewer units as compared to a year ago. During the quarter, Family Dining closed one unit. Year-to-year operating margins expanded to 4.1 percent from 2.7 percent last year. "Effective management of food and labor cost and administrative expenses along with the success of our customer value programs enhanced profitability and margins. The entire Family Dining team has done a fine job indeed," Beall concluded.
 Morrison Restaurants Inc. operations include: 159 Ruby Tuesdays, 41 L&N Seafood Grills, 15 Silver Spoon Cafes, Morrison's Hospitality Group, a national contract restaurant business specializing in health care, education and business/industry and, 160 Morrison's Family Dining restaurants, the dominant cafeteria chain in the Southeast.
 Ruby Tuesdays are distinctive casual dining restaurants featuring an eclectic menu of soups, an exceptional salad bar, burgers, fajitas, pasta, entree salads, Pro-Health Dining, special desserts, and a full- service bar. L&N Seafood Grills are unique, casual dinner houses featuring wood-grilled fresh seafood, steaks, chops and chicken, entree seafood salads, unique pastas, our "bottom-less" salads, fresh biscuits and a full-service bar. Silver Spoon Cafes feature innovative soups, salads, sandwiches, pizzas, pastas, gourmet pot pies, and grilled specialties -- all prepared from scratch -- and a full-service bar in a trendy, upbeat atmosphere. Morrison's Cafeterias are self-service restaurants offering a wide variety of salads and fresh fruit, meat, seafood, chicken and pasta entrees, a wide selection of vegetables and side dishes, fresh baked breads and desserts served a la carte or as four value meal combinations -- Child's Plate, Vegetable Plate, Blue Plate or Maximum Meal.
 MORRISON RESTAURANTS INC.
 Supplemental Information
 (000s)
 For the quarter ending 9/5/92 8/31/91 Pct. chg.
 Sales:
 Ruby Tuesday Group $ 86,725 $ 74,966 +16
 Morrison's Hospitality Group 91,247 88,432 + 3
 Morrison's Family Dining 70,397 78,280 -10
 Corporate and other (9) (7) ---
 Total $248,360 $241,671 + 3
 Operating profit:
 Ruby Tuesday Group $ 7,477 $ 6,463 +16
 Morrison's Hospitality Group 2,726 2,365 +15
 Morrison's Family Dining 2,898 2,084 +39
 Total 13,101 10,912 +20
 Corporate expenses (2,003) (1,589) +26
 Net interest income (expense) (99) (340) -71
 Income before income taxes 10,999 8,983 +22
 Income taxes 4,021 3,279 +23
 Net income $ 6,978 $ 5,704 +22
 Earnings per share $0.28 $0.23 +22
 Shares 25,206 24,615
 Operating Profit Margins:
 Ruby Tuesday Group 8.6 pct. 8.6 pct.
 Morrison's Hospitality Group 3.0 pct. 2.7 pct.
 Morrison's Family Dining 4.1 pct. 2.7 pct.
 All per-share data has been adjusted to give effect for the 3-for-2 stock split paid April 30, 1992.
 MORRISON RESTAURANTS INC.
 Condensed Operating Results
 Financial results for the first quarter
 of fiscal year 1993 (unaudited)
 (Amounts in thousands expect per-share amounts)
 13 weeks ended 9/5/92 8/31/91
 Sales $248,360 $241,671
 Income before income taxes 10,999 8,983
 Income taxes 4,021 3,279
 Net income $ 6,978 $ 5,704
 Earnings per common and common equivalent
 share $0.28 $0.23
 Common and common equivalent shares 25,206 24,615
 Earnings per share and common and common equivalent shares for the 13 weeks ended Aug. 31, 1991, have been adjusted to give effect for the 3-for-2 stock split paid on April 30, 1992.
 Condensed Balance Sheets
 9/5/92 8/31/91
 Assets
 Cash and short-term investments $ 59,285 $ 28,006
 Accounts and notes receivable 29,419 38,377
 Inventory 14,557 13,777
 All other current assets 18,790 16,939
 Total current assets 122,051 97,099
 Property, plant and equipment, net 195,207 196,351
 Costs in excess of net assets acquired 23,630 25,812
 Other assets 39,028 20,503
 Total assets $379,916 $339,765
 Liabilities
 Current liabilities $ 95,620 $ 80,258
 Long-term debt 35,062 36,942
 Deferred income taxes 15,789 22,540
 Other deferred liabilities 26,050 15,383
 Total liabilities 172,521 155,123
 Stockholders' equity 207,395 184,642
 Total liabilities and stockholders'
 equity $379,916 $339,765
 -0- 09/30/92
 CONTACT: Robert G. Crankovic of Morrison, 205-344-3000, ext. 2201
 (MORR) CO: MORRISON INC. IN: LEI SU: ERN ST: AL -- AT008 -- X669 09/30/92
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Sep 30, 1992
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