Morton’s Restaurant Group, Inc. has reported unaudited financial results for its fiscal 2011 first quarter ended April 3, 2011.
Financial results for the three month period ended April 3, 2011 compared to the three month period ended April 4, 2010
- Revenues increased 9.6% to $82.5 million from $75.3 million.
- Comparable restaurant revenues for Morton’s steakhouses increased 7.5%.
- Adjusted net income from continuing operations was $2.8 million, or $0.16 per diluted share, for the three month period ended April 3, 2011, compared to adjusted net income from continuing operations of $1.8 million, or $0.11 per diluted share, for the three month period ended April 4, 2010. Refer to the reconciliation of adjusted net income from continuing operations to GAAP net income from continuing operations in the tables that follow.
- GAAP net income from continuing operations was $2.2 million, or $0.12 per diluted share, for the three month period ended April 3, 2011, compared to GAAP net income from continuing operations of $1.2 million, or $0.07 per diluted share, for the three month period ended April 4, 2010.
- The three month period ended April 3, 2011 included a charge of $0.7 million, or $0.04 per diluted share, relating to the settlement of certain wage and hour and similar labor claims as well as relating to professional fees associated with the previously announced exploration of strategic alternatives. The three month period ended April 4, 2010 included a final mark-to-market adjustment of $0.5 million, or $0.03 per diluted share, related to the Company’s convertible preferred shares issued in connection with the fiscal 2009 settlement of certain wage and hour litigation. Refer to the reconciliation of adjusted net income from continuing operations to GAAP net income from continuing operations in the tables that follow for additional details.
“I am pleased to report comparable restaurant revenue up by 7.5% this quarter and that we are trending positive for the fifth consecutive quarter,” said Christopher J. Artinian, President and Chief Executive Officer of Morton’s Restaurant Group, Inc. “Our operating expenses for the quarter were well controlled and we continue to expand operating margins, despite the inflationary environment. With the gradual increase in business travel and entertaining and our focus on strategic growth areas, we are well positioned to grow our business both domestically and internationally, especially in Asia. The Morton’s Gold Standard experience we provide is consistent throughout the world, whether guests enjoy our Bar 12?21, our main dining room or our private dining boardrooms, and we feature ‘The Best Steak Anywhere!’”
Fiscal 2011 Financial Guidance
Actual results could differ materially from the guidance provided herein as a result of numerous factors, many of which are beyond the Company’s control and are highly dependent upon overall economic conditions. Please refer to the “Cautionary Note on Forward-Looking Statements” later in this press release in conjunction with this guidance.
The Company currently expects the following financial results for the second fiscal quarter of 2011:
- Revenues to range between $76 million and $78 million;
- Comparable restaurant revenues to increase approximately 6% to 8% as compared to the second quarter of fiscal 2010;
- Diluted net income per share from continuing operations of approximately $0.03 to $0.05, excluding professional fees associated with the previously announced exploration of strategic alternatives; and
- An expected effective tax rate that is not expected to exceed 21%.
The Company currently expects the following financial results for the full year fiscal 2011:
- Revenues to range between $319 million and $323 million;
- Comparable restaurant revenues to increase approximately 6% to 8% as compared to the full year fiscal 2010;
- Diluted net income per share from continuing operations of approximately $0.45 to $0.49, excluding expenses relating to the settlement of certain wage and hour and similar labor claims as well as professional fees associated with the previously announced exploration of strategic alternatives; and
- An expected effective tax rate that is not expected to exceed 21%.
Development Activity
During fiscal year 2011, the Company expects to retrofit up to four Morton’s steakhouses to include a Bar 12?21, two of which were completed in the first quarter of fiscal 2011. In addition, we opened a new Morton’s steakhouse on February 24, 2011 in the Uptown area of Dallas, TX, which also includes a Bar 12?21.
Morton’s Restaurant Group, Inc. is the world’s largest operator of company-owned upscale steakhouses. Morton’s steakhouses have remained true to our founders’ original vision of combining generous portions of high quality food, prepared to exacting standards, with exceptional service in an enjoyable dining environment. As of May 4, 2011, the Company owned and operated 77 Morton’s steakhouses located in 64 cities across 26 states, Puerto Rico and 6 international locations (Hong Kong, Macau, Shanghai, Mexico City, Singapore and Toronto), as well as Trevi, our Italian restaurant, which is located next to the ‘Fountain of the Gods’ at The Forum Shops at Caesars Palace in Las Vegas, NV.