Ryan's Announces First Quarter 2005 Results

Ryan's Announces First Quarter 2005 Results 


GREER, S.C., April 20  /PRNewswire-FirstCall/ -- Ryan's Restaurant Group, Inc.
(NASDAQ:RYAN) reported first quarter 2005 results today.

First quarter restaurant sales were $209,639,000 in 2005 compared to
$211,657,000 for the comparable quarter in 2004.  Net earnings for the quarter
amounted to $11,813,000 in 2005 and $15,360,000 in 2004.  Earnings per share
(diluted) amounted to 28 cents in 2005 compared to 35 cents in 2004.

Commenting on the quarter, Charles D. Way, CEO of the Company, said, "Our first
quarter's financial results were impacted by what one might call a 'perfect
storm' ... a difficult sales environment and higher cost of sales. Our sales
levels were disappointing, with a same-store sales decline of 3.1% for the
quarter.  Even though we were comparing against a record quarter in 2004, we
believe that, more importantly, our sales were impacted by economic conditions
that affect our customers.  The first quarter of 2005 saw highly publicized
increases in both energy costs and interest rates.  Lead articles concerning
higher gasoline prices were run frequently in many newspapers.  Our customers
certainly experienced higher prices at the gas pumps as well as higher utility
bills during the quarter.  Reports of increasing mortgage rates were also
common, and this news had to be of concern to customers with adjustable rate
mortgages.  We believe that these issues affected our customers' disposable
income spending decisions, resulting in reduced dining- out expenditures."

Cost of sales was impacted by a combination of higher costs and our efforts to
build and retain sales.  Food costs were higher due to higher beef, pork and
dairy prices.  Payroll costs increased principally due to a tactical decision
to increase hourly staffing levels in order to provide a better dining
experience for our customers and consequently build and retain sales.
Store-level profits were also affected by higher maintenance, utility and
insurance costs."

Looking forward, we are cautiously optimistic that we will see improved sales
levels during the second half of 2005.  Our operations leadership has been
focusing on improved execution at our display grills and on increasing the
visibility and curb appeal of our restaurants.  As noted above, staffing levels
have also been increased as part of our sales-building efforts.  We have
implemented food theme nights at many of our restaurants, and our restaurant
personnel are actively involved in various local marketing programs.  However,
high energy costs continue to be very present, and, as noted above, we are
concerned about the impact of these higher costs on our customers' spending
patterns.  From a cost standpoint, we believe that we must adapt to a generally
higher cost environment.  However, food costs could be favorably affected if
live cattle imports are again allowed from Canada."

At March 30, 2005, the Company owned and operated 344 restaurants and was
franchiser of 4 restaurants.

In connection with this press release, members of Ryan's executive management
will be holding a conference call with investment analysts today at 4:00 p.m.
EDT.  The public can listen to a live webcast of this call by logging on to the
web at http://www.ryans.com/ and following the appropriate links.

Certain matters discussed in this press release are forward-looking statements
within the meaning of the federal securities laws and are subject to
uncertainties and risks, including, but not limited to, general economic
conditions, including consumer confidence levels; competition; developments
affecting the public's perception of buffet-style restaurants; real estate
availability; food and labor supply costs; food and labor availability; an
adverse food safety event; weather fluctuations; interest rate fluctuations;
stock market conditions; political environment (including acts of terrorism and
wars); and other such risks described from time to time in the Company's
reports filed with the Securities and Exchange Commission.

                      RYAN'S RESTAURANT GROUP, INC.
                   CONSOLIDATED STATEMENTS OF EARNINGS
                               (Unaudited)

                                                       Quarter Ended
                                                  March 30,      March 31,
                                                    2005           2004

  Restaurant sales                            $209,639,000    211,657,000

  Cost of sales:
    Food and beverage                           72,613,000     72,500,000
    Payroll and benefits                        67,991,000     66,870,000
    Depreciation                                 8,453,000      8,557,000
    Other restaurant expenses                   31,520,000     28,812,000

      Total cost of sales                      180,577,000    176,739,000

  General and administrative expenses           10,470,000     10,322,000
  Interest expense                               2,360,000      2,685,000
  Royalties from franchised restaurants           (174,000)      (363,000)
  Other income, net                             (1,200,000)      (928,000)

  Earnings before income taxes                  17,606,000     23,202,000
  Income taxes                                   5,793,000      7,842,000

      Net earnings                             $11,813,000     15,360,000

  Net earnings per common share:
    Basic                                             $.28            .37
    Diluted                                            .28            .35

  Weighted-average shares:
    Basic                                       41,938,000     42,081,000
    Diluted                                     42,870,000     43,910,000



                      RYAN'S RESTAURANT GROUP, INC.
                       CONSOLIDATED BALANCE SHEETS

                                                  March 30,   December 29,
                                                    2005           2004
  ASSETS                                        (Unaudited)
  Current assets:
    Cash and cash equivalents                  $22,999,000      7,354,000
    Receivables                                  4,044,000      4,639,000
    Inventories                                  6,776,000      5,611,000
    Prepaid expenses                               937,000      1,016,000
    Deferred income taxes                        5,165,000      5,110,000

      Total current assets                      39,921,000     23,730,000

  Property and equipment:
    Land and improvements                      163,761,000    162,082,000
    Buildings                                  490,024,000    480,781,000
    Equipment                                  275,670,000    271,431,000
    Construction in progress                    36,277,000     31,531,000
                                               965,732,000    945,825,000
    Less accumulated depreciation              303,748,000    295,852,000

      Net property and equipment               661,984,000    649,973,000

  Other assets                                  10,790,000     10,643,000

      Total assets                            $712,695,000    684,346,000

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                             9,437,000      5,963,000
    Current portion of long-term debt           18,750,000     18,750,000
    Income taxes payable                         6,921,000      1,842,000
    Accrued liabilities                         43,307,000     42,569,000

      Total current liabilities                 78,415,000     69,124,000

  Long-term debt                               170,000,000    164,250,000
  Deferred income taxes                         47,925,000     47,674,000
  Other long-term liabilities                    7,960,000      7,692,000

      Total liabilities                        304,300,000    288,740,000

  Shareholders' equity:
    Common stock of $1.00 par value; authorized
     100,000,000 shares; issued 41,985,000 shares
     in 2005 and 41,890,000 shares in 2004      41,985,000     41,890,000
    Additional paid-in capital                   4,759,000      3,878,000
    Retained earnings                          361,651,000    349,838,000

      Total shareholders' equity               408,395,000    395,606,000

  Commitments and contingencies

      Total liabilities and shareholders'
       equity                                 $712,695,000    684,346,000



                      RYAN'S RESTAURANT GROUP, INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (Unaudited)

                                                     Three Months Ended
                                                  March 30,      March 31,
                                                    2005           2004
  Cash flows from operating activities:
    Net earnings                               $11,813,000     15,360,000
    Adjustments to reconcile net earnings to
     net cash provided by operating activities:
       Depreciation and amortization             8,931,000      9,020,000
       Loss (gain) on sale of property
        and equipment                             (119,000)       657,000
       Tax benefit from exercise of stock options  216,000      1,462,000
       Deferred income taxes                       196,000        195,000
       Decrease (increase) in:
         Receivables                               595,000       (275,000)
         Inventories                            (1,165,000)      (758,000)
         Prepaid expenses                           79,000        453,000
         Other assets                             (237,000)      (289,000)
       Increase in:
         Accounts payable                        3,474,000      1,968,000
         Income taxes payable                    5,079,000      5,995,000
         Accrued liabilities                       738,000      1,484,000
         Other long-term liabilities               268,000        227,000

  Net cash provided by operating activities     29,868,000     35,499,000

  Cash flows from investing activities:
    Proceeds from sale of property and equipment 1,955,000      1,657,000
    Capital expenditures                       (22,688,000)   (16,882,000)

  Net cash used in investing activities        (20,733,000)   (15,225,000)

  Cash flows from financing activities:
    Net borrowings from (repayment of) revolving
     credit facility                             5,750,000     (5,000,000)
    Proceeds from stock options exercised          783,000      3,014,000
    Purchase of common stock                       (23,000)    (4,510,000)

  Net cash provided by (used in) financing
   activities                                    6,510,000     (6,496,000)

  Net increase in cash and cash equivalents     15,645,000     13,778,000

  Cash and cash equivalents - beginning
   of period                                     7,354,000      8,617,000

  Cash and cash equivalents - end
   of period                                   $22,999,000     22,395,000

  Supplemental disclosures
  Cash paid during period for:
    Interest, net of amount capitalized         $4,226,000      4,459,000
    Income taxes                                   302,000        190,000


DATASOURCE: Ryan's Restaurant Group



CONTACT:  Fred T. Grant, Jr., Senior Vice President - Finance of Ryan's

Restaurant Group, [phone]



Web site:  http://www.ryansrg.com/ 

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