Carrols Restaurant Group, Inc. Reports Financial Results for the Fourth Quarter and Full Year 2019
Company to Substantially Reduce Capital Expenditures in 2020 Compared to 2019 and Focus on Free Cash Flow Generation of Current Restaurant Portfolio
Highlights for the Fourth Quarter of 2019 versus the Fourth Quarter of 2018 Include:
-
Total revenue increased 30.3% to
$401.1 million (including$73.6 million in restaurant sales and$3.4 million in other revenue from theCambridge acquisition completed in the second quarter of 2019) from$307.8 million in the prior year quarter; - Comparable restaurant sales for the Company’s Burger King restaurants increased 2.0% compared to a 2.7% increase in the prior year quarter, an increase of 4.7% on a two-year stacked basis;
-
Comparable restaurant sales for the Company’s
Popeyes restaurants increased 21.2% compared to comparable restaurant sales under previous ownership in the prior year quarter; - Promotions and discounts were 19.0% of restaurant sales for the Company's comparable Burger King restaurants compared to 26.6% in the prior year quarter;
-
Adjusted EBITDA(1) was
$22.7 million compared to$24.5 million in the prior year quarter; -
Net loss was
$9.9 million , or$0.20 per diluted share, compared to net income of$1.8 million , or$0.04 per diluted share, in the prior year quarter; and -
Adjusted net loss(1) was
$6.2 million , or$0.12 per diluted share, compared to adjusted net income of$2.5 million , or$0.05 per diluted share, in the prior year quarter.
Highlights for Full Year of 2019 versus Full Year of 2018 Include:
-
Total revenue increased 24.0% to
$1.46 billion (including$193.1 million in restaurant sales and$10.2 million in other revenue from theCambridge acquisition completed in the second quarter of 2019) from$1.18 billion in 2018; - Comparable restaurant sales for the Company’s Burger King restaurants increased 2.2% compared to a 3.8% increase in 2018, an increase of 6.0% on a two-year stacked basis;
-
Comparable restaurant sales for the Company’s
Popeyes restaurants increased 11.9% for our eight months of ownership compared to comparable restaurant sales under previous ownership in the prior year; -
Adjusted EBITDA(1) was
$86.1 million compared to$103.0 million in 2018; -
Net loss was
$31.9 million , or$0.74 per diluted share, compared to net income of$10.1 million , or$0.22 per diluted share, in 2018; and -
Adjusted net loss(1) was
$15.5 million , or$0.36 per diluted share, compared to adjusted net income of$14.1 million , or$0.31 per diluted share, in 2018.
(1) |
Adjusted EBITDA, |
Accordino continued, “We begin 2020 with great optimism regarding our growth trajectory for restaurant sales and Adjusted EBITDA. Our top-line will benefit from a full year of contributions from the restaurants we acquired, remodeled and built during 2019 and early 2020. We are projecting a 2% to 3% gain in comparable restaurant sales in 2020 for our Burger King restaurants based upon the brand’s marketing initiatives and product roll-out schedule, and adding delivery capabilities by the end of the second quarter. We also foresee higher Adjusted EBITDA and margin improvement compared to 2019. We believe this will be driven by expected improvements at our
Accordino concluded, “In terms of our 2020 plans, in consultation with our board of directors we have reset our strategy to prioritize organic sales and margin growth within our current restaurant portfolio and to aggressively reduce our capital spending compared to 2019. We anticipate that projected net capital expenditures in 2020 will be approximately
Fourth Quarter 2019 Financial Results
Total revenue increased 30.3% to
General and administrative expenses were
Adjusted EBITDA(1) was
Loss from operations was
Interest expense increased to
Net loss was
Adjusted net loss(1) was
Carrols repurchased 270,043 shares of its outstanding common stock in open market transactions during the fourth quarter of 2019 at a cost of approximately
The Company ended the fourth quarter of 2019 with cash of
2020 Growth and Capital Allocation Strategy
In consultation with our Board of Directors, we have reset the Company’s growth and capital allocation strategy. In 2020, Carrols will prioritize organic sales and margin improvement within our current restaurant portfolio and aggressively reduce capital spending compared to 2019 levels. These measures are designed to generate free cash flow and reduce our debt in absolute dollars as well as our debt leverage ratios.
We will accomplish our objectives through the following steps:
- Slowing down the pace of acquisition activity;
-
Limiting new restaurant development in 2020 to six new Burger King restaurants with attractive expected returns on capital. We also are completing the new build of six Burger King restaurants during the first quarter of 2020 that were started in late 2019. In total, we will be opening 12 new Burger King restaurants in 2020 (by comparison we opened 21 Burger King restaurants and 10
Popeyes restaurants in 2019); -
Reducing our remodeling activity in 2020 to just 12 Burger King restaurants with high returns on capital (by comparison, we remodeled 74 Burger King restaurants and 4
Popeyes restaurants in 2019); and - Taking a renewed look at operating expenses across the expanded business with the goal of creating greater efficiencies and improved margins over time.
Based upon our full year 2020 outlook detailed below, we expect to generate up to
Full Year 2020 Outlook
The Company is providing the following guidance for 2020 which is a 53-week fiscal period:
-
We expect total restaurant sales of
$1.64 billion to$1.69 billion ; -
Comparable restaurant sales growth for our Burger King restaurants owned for more than 12 months as of
December 29, 2019 is expected to be 2% to 3%. Please note that the Cambridge Burger King restaurants will enter the comparable base onMay 1 st; - Commodity costs are expected to increase 2% to 3%, with beef costs expected to increase 9%;
-
General and administrative expenses are expected to be
$80 million to$85 million , excluding stock compensation expense, reflecting the full year impact of overhead costs required to support our enlarged restaurant base; -
Adjusted EBITDA is expected to be
$100 million to$110 million ; -
Interest expense is expected to be approximately
$30 million based on our debt pricing and expected stable LIBOR levels; -
Gross capital expenditures are expected to be
$70 million to$75 million , including approximately 35% for maintenance, 15% for remodeling; and 40% for construction of new restaurants. Of that total, approximately$25 million will be expended in the first quarter of 2020 primarily relating to the completion of new restaurants and remodels that commenced in 2019; and -
Proceeds from sale/leasebacks are expected to be approximately
$10 million to$15 million ; resulting in net capital expenditures of$55 million to$65 million .
Carrols has not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because the Company does not provide guidance for net income or for the various reconciling items. The Company is unable to provide guidance for these reconciling items since certain items that impact net income are outside of Carrols’ control or cannot be reasonably predicted.
Conference Call Today
The conference call can be accessed live over the phone by dialing 201-493-6725. A replay will be available one hour after the call and can be accessed by dialing 412-317-6671; the passcode is 13698631. The replay will be available until
About the Company
Carrols is one of largest restaurant franchisees in
Forward-Looking Statements
Except for the historical information contained in this news release, the matters addressed are forward-looking statements. Forward-looking statements, written, oral or otherwise made, represent Carrols' expectation or belief concerning future events. Without limiting the foregoing, these statements are often identified by the words "may", "might", "believes", "thinks", "anticipates", "plans", "expects", "intends" or similar expressions. In addition, expressions of our strategies, intentions, plans or guidance are also forward-looking statements. Such statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. You are cautioned not to place undue reliance on these forward-looking statements as there are important factors that could cause actual results to differ materially from those in forward-looking statements, many of which are beyond our control. Investors are referred to the full discussion of risks and uncertainties as included in Carrols' filings with the
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Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
|
(unaudited) |
|
(unaudited) |
||||||||||||
|
Three Months Ended (a) |
|
Twelve Months Ended (a) |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Restaurant sales |
$ |
397,639 |
|
|
$ |
307,754 |
|
|
$ |
1,452,516 |
|
|
$ |
1,179,307 |
|
Other revenue |
3,433 |
|
|
— |
|
|
10,249 |
|
|
— |
|
||||
Total revenue |
$ |
401,072 |
|
|
$ |
307,754 |
|
|
$ |
1,462,765 |
|
|
$ |
1,179,307 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of sales |
118,954 |
|
|
89,304 |
|
|
431,969 |
|
|
326,308 |
|
||||
Restaurant wages and related expenses |
132,876 |
|
|
99,340 |
|
|
485,278 |
|
|
382,829 |
|
||||
Restaurant rent expense |
29,241 |
|
|
21,297 |
|
|
107,147 |
|
|
81,409 |
|
||||
Other restaurant operating expenses (b) |
62,741 |
|
|
45,812 |
|
|
227,364 |
|
|
178,750 |
|
||||
Advertising expense |
16,088 |
|
|
12,599 |
|
|
58,689 |
|
|
48,340 |
|
||||
General and administrative expenses (c) (d) |
23,025 |
|
|
16,829 |
|
|
84,734 |
|
|
66,587 |
|
||||
Depreciation and amortization |
21,061 |
|
|
15,042 |
|
|
74,674 |
|
|
58,468 |
|
||||
Impairment and other lease charges |
1,787 |
|
|
331 |
|
|
3,564 |
|
|
3,685 |
|
||||
Other expense (income), net (e) |
(138 |
) |
|
10 |
|
|
(1,911 |
) |
|
(424 |
) |
||||
Total operating expenses |
405,635 |
|
|
300,564 |
|
|
1,471,508 |
|
|
1,145,952 |
|
||||
Income (loss) from operations |
(4,563 |
) |
|
7,190 |
|
|
(8,743 |
) |
|
33,355 |
|
||||
Interest expense |
7,431 |
|
|
5,886 |
|
|
27,856 |
|
|
23,638 |
|
||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
7,443 |
|
|
— |
|
||||
Gain on bargain purchase |
— |
|
|
— |
|
|
— |
|
|
(230 |
) |
||||
Income (loss) before income taxes |
(11,994 |
) |
|
1,304 |
|
|
(44,042 |
) |
|
9,947 |
|
||||
Provision (benefit) for income taxes |
(2,088 |
) |
|
(503 |
) |
|
(12,123 |
) |
|
(157 |
) |
||||
Net income (loss) |
$ |
(9,906 |
) |
|
$ |
1,807 |
|
|
$ |
(31,919 |
) |
|
$ |
10,104 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income (loss) per share (f)(g) |
$ |
(0.20 |
) |
|
$ |
0.04 |
|
|
$ |
(0.74 |
) |
|
$ |
0.22 |
|
Basic weighted average common shares outstanding |
50,643 |
|
|
35,742 |
|
|
43,422 |
|
|
35,715 |
|
||||
Diluted weighted average common shares outstanding |
50,643 |
|
|
45,403 |
|
|
43,422 |
|
|
45,320 |
|
(a) |
The Company uses a 52 or 53 week fiscal year that ends on the Sunday closest to |
|
(b) |
Other restaurant operating expenses include one-time repair and other operating costs of |
|
(c) |
General and administrative expenses include acquisition and integration costs of |
|
(d) |
General and administrative expenses include stock-based compensation expense of |
|
(e) |
Other income, net, for the twelve months ended |
|
(f) |
Basic net income (loss) per share was computed excluding loss attributable to preferred stock and non-vested restricted shares unless the effect would have been anti-dilutive for the periods presented. |
|
(g) |
Diluted net income (loss) per share was computed including common shares issuable for convertible preferred stock and non-vested restricted shares unless their effect would have been anti-dilutive for the periods presented. |
|
Supplemental Information
The following table sets forth certain unaudited supplemental financial and other data for the periods indicated (in thousands, except number of restaurants, percentages and average weekly sales per restaurant):
|
(unaudited) |
|
(unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended (a) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||||||||
Burger King restaurant sales |
$ |
374,945 |
|
|
$ |
307,754 |
|
|
$ |
1,398,660 |
|
|
$ |
1,179,307 |
|
|||||||
|
22,694 |
|
|
— |
|
|
53,856 |
|
|
— |
|
|||||||||||
Total restaurant sales |
397,639 |
|
|
307,754 |
|
|
1,452,516 |
|
|
1,179,307 |
|
|||||||||||
Other revenue |
3,433 |
|
|
— |
|
|
10,249 |
|
|
— |
|
|||||||||||
Total revenue |
$ |
401,072 |
|
|
$ |
307,754 |
|
|
$ |
1,462,765 |
|
|
$ |
1,179,307 |
|
|||||||
Change in Comparable Burger King Restaurant Sales (a) |
2.0 |
% |
|
2.7 |
% |
|
2.2 |
% |
|
3.8 |
% |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Average Weekly Sales per |
$ |
28,232 |
|
|
$ |
28,226 |
|
|
$ |
28,065 |
|
|
$ |
27,865 |
|
|||||||
Average Weekly Sales per |
$ |
28,431 |
|
|
$ |
— |
|
|
$ |
26,458 |
|
|
$ |
— |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted Restaurant-Level EBITDA (c) |
$ |
42,920 |
|
|
$ |
39,520 |
|
|
$ |
156,131 |
|
|
$ |
162,133 |
|
|||||||
Adjusted Restaurant-Level EBITDA margin (c) |
10.8 |
% |
|
12.8 |
% |
|
10.7 |
% |
|
13.7 |
% |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA (c) |
$ |
22,701 |
|
|
$ |
24,461 |
|
|
$ |
86,115 |
|
|
$ |
102,990 |
|
|||||||
Adjusted EBITDA margin (c) |
5.7 |
% |
|
7.9 |
% |
|
5.9 |
% |
|
8.7 |
% |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted net income (loss) (c) |
$ |
(6,182 |
) |
|
$ |
2,495 |
|
|
$ |
(15,514 |
) |
|
$ |
14,091 |
|
|||||||
Adjusted diluted net income (loss) per share (c) |
$ |
(0.12 |
) |
|
$ |
0.05 |
|
|
$ |
(0.36 |
) |
|
$ |
0.31 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Number of Burger King restaurants: |
|
|
|
|
|
|
|
|||||||||||||||
Restaurants at beginning of period |
1,028 |
|
|
838 |
|
|
849 |
|
|
807 |
|
|||||||||||
New restaurants (including offsets) |
8 |
|
|
2 |
|
|
21 |
|
|
8 |
|
|||||||||||
Restaurants acquired |
— |
|
|
10 |
|
|
179 |
|
|
44 |
|
|||||||||||
Restaurants closed (including offsets) |
— |
|
|
(1 |
) |
|
(13 |
) |
|
(10 |
) |
|||||||||||
Restaurants at end of period |
1,036 |
|
|
849 |
|
|
1,036 |
|
|
849 |
|
|||||||||||
Average Number of Restaurants: |
1,021.6 |
|
|
838.7 |
|
|
958.4 |
|
|
813.9 |
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Number of |
|
|
|
|
|
|
|
|||||||||||||||
Restaurants at beginning of period |
60 |
|
|
— |
|
|
— |
|
|
— |
|
|||||||||||
Restaurants acquired |
— |
|
|
— |
|
|
55 |
|
|
— |
|
|||||||||||
New restaurants |
5 |
|
|
— |
|
|
10 |
|
|
— |
|
|||||||||||
Restaurants at end of period |
65 |
|
|
— |
|
|
65 |
|
|
— |
|
|||||||||||
Average Number of Restaurants: |
61.4 |
|
|
— |
|
|
58.9 |
|
|
— |
|
|||||||||||
|
At |
|
At |
|||||||||||||||||||
Long-term debt and finance lease liabilities (d) |
$ |
472,343 |
|
|
$ |
280,144 |
|
|||||||||||||||
Cash and cash equivalents |
$ |
2,974 |
|
|
$ |
4,014 |
|
(a) |
Restaurants we acquire are included in comparable restaurant sales after they have been operated by us for 12 months. Sales from restaurants we develop are included in comparable sales after they have been open for 15 months. The calculation of changes in comparable restaurant sales is based on the comparable 13-week or 52-week period. |
|
(b) |
Average weekly sales per restaurant are derived by dividing restaurant sales for the comparable 13-week or 52-week period by the average number of restaurants operating during such period. |
|
(c) |
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Restaurant-Level EBITDA, Adjusted Restaurant-Level EBITDA margin and Adjusted net income (loss) are non-GAAP financial measures and may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation. Refer to the Company's reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted net income (loss), and to the Company's reconciliation of income (loss) from operations to Adjusted Restaurant-Level EBITDA for further detail. Both Adjusted EBITDA margin and Adjusted Restaurant-Level EBITDA margin are calculated as a percentage of total restaurant sales. Adjusted diluted net income (loss) per share is calculated based on Adjusted net income (loss) and reflects the dilutive impact of shares, where applicable, based on Adjusted net income (loss). |
|
(d) |
Long-term debt and finance lease liabilities (including current portion and excluding deferred financing costs and original issue discount) at |
|
|||||||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
|
(unaudited) |
|
(unaudited) |
||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation of EBITDA and Adjusted EBITDA: (a) |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(9,906 |
) |
|
$ |
1,807 |
|
|
$ |
(31,919 |
) |
|
$ |
10,104 |
|
Provision (benefit) for income taxes |
(2,088 |
) |
|
(503 |
) |
|
(12,123 |
) |
|
(157 |
) |
||||
Interest expense |
7,431 |
|
|
5,886 |
|
|
27,856 |
|
|
23,638 |
|
||||
Depreciation and amortization |
21,061 |
|
|
15,042 |
|
|
74,674 |
|
|
58,468 |
|
||||
EBITDA |
16,498 |
|
|
22,232 |
|
|
58,488 |
|
|
92,053 |
|
||||
Impairment and other lease charges |
1,787 |
|
|
331 |
|
|
3,564 |
|
|
3,685 |
|
||||
Acquisition and integration costs (b) |
2,844 |
|
|
409 |
|
|
10,827 |
|
|
1,445 |
|
||||
Pre-opening costs (c) |
386 |
|
|
118 |
|
|
1,449 |
|
|
462 |
|
||||
Litigation costs (d) |
86 |
|
|
50 |
|
|
502 |
|
|
187 |
|
||||
Other income, net (e) |
(138 |
) |
|
10 |
|
|
(1,911 |
) |
|
(424 |
) |
||||
Gain on bargain purchase |
— |
|
|
— |
|
|
— |
|
|
(230 |
) |
||||
Stock-based compensation expense |
1,238 |
|
|
1,311 |
|
|
5,753 |
|
|
5,812 |
|
||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
7,443 |
|
|
— |
|
||||
Adjusted EBITDA |
$ |
22,701 |
|
|
$ |
24,461 |
|
|
$ |
86,115 |
|
|
$ |
102,990 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Adjusted Restaurant-Level EBITDA: (a) |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
(4,563 |
) |
|
$ |
7,190 |
|
|
$ |
(8,743 |
) |
|
$ |
33,355 |
|
Add: |
|
|
|
|
|
|
|
||||||||
General and administrative expenses |
23,025 |
|
|
16,829 |
|
|
84,734 |
|
|
66,587 |
|
||||
Restaurant integration costs (b) |
1,362 |
|
|
— |
|
|
2,364 |
|
|
— |
|
||||
Pre-opening costs (c) |
386 |
|
|
118 |
|
|
1,449 |
|
|
462 |
|
||||
Depreciation and amortization |
21,061 |
|
|
15,042 |
|
|
74,674 |
|
|
58,468 |
|
||||
Impairment and other lease charges |
1,787 |
|
|
331 |
|
|
3,564 |
|
|
3,685 |
|
||||
Other income, net (e) |
(138 |
) |
|
10 |
|
|
(1,911 |
) |
|
(424 |
) |
||||
Adjusted Restaurant-Level EBITDA |
$ |
42,920 |
|
|
$ |
39,520 |
|
|
$ |
156,131 |
|
|
$ |
162,133 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Adjusted net income (loss): (a) |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(9,906 |
) |
|
$ |
1,807 |
|
|
$ |
(31,919 |
) |
|
$ |
10,104 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Impairment and other lease charges |
1,787 |
|
|
331 |
|
|
3,564 |
|
|
3,685 |
|
||||
Acquisition and integration costs (b) |
2,844 |
|
|
409 |
|
|
10,827 |
|
|
1,445 |
|
||||
Pre-opening costs (c) |
386 |
|
|
118 |
|
|
1,449 |
|
|
462 |
|
||||
Litigation costs (d) |
86 |
|
|
50 |
|
|
502 |
|
|
187 |
|
||||
Other income, net (e) |
(138 |
) |
|
10 |
|
|
(1,911 |
) |
|
(424 |
) |
||||
Gain on bargain purchase |
— |
|
|
— |
|
|
— |
|
|
(230 |
) |
||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
7,443 |
|
|
— |
|
||||
Income tax effect on above adjustments (f) |
(1,241 |
) |
|
(230 |
) |
|
(5,469 |
) |
|
(1,138 |
) |
||||
Adjusted net income (loss) |
$ |
(6,182 |
) |
|
$ |
2,495 |
|
|
$ |
(15,514 |
) |
|
$ |
14,091 |
|
Adjusted diluted net income (loss) per share |
$ |
(0.12 |
) |
|
$ |
0.05 |
|
|
$ |
(0.36 |
) |
|
$ |
0.31 |
|
Diluted weighted average common shares outstanding |
50,643 |
|
|
45,403 |
|
|
43,422 |
|
|
45,320 |
|
(a) |
Within our press release, we make reference to EBITDA, Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted net income (loss) which are non-GAAP financial measures. EBITDA represents net income (loss) before income taxes, interest expense and depreciation and amortization. Adjusted EBITDA represents EBITDA as adjusted to exclude impairment and other lease charges, acquisition and integration costs, stock-based compensation expense, loss on extinguishment of debt, restaurant pre-opening costs, non-recurring litigation costs and other non-recurring income or expense. Adjusted Restaurant-Level EBITDA represents income (loss) from operations as adjusted to exclude general and administrative expenses, depreciation and amortization, impairment and other lease charges, restaurant-level integration costs, pre-opening costs, loss on extinguishment of debt, and other non-recurring income or expense. Adjusted net income (loss) represents net income (loss) as adjusted, net of tax, to exclude impairment and other lease charges, acquisition costs and integration costs, gain on bargain purchase, pre-opening costs, non-recurring litigation costs and other non-recurring income or expense. |
|
|
We are presenting Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted net income (loss) because we believe that they provide a more meaningful comparison than EBITDA and net income (loss) of the Company's core business operating results, as well as with those of other similar companies. Additionally, we present Adjusted Restaurant-Level EBITDA because it excludes the impact of general and administrative expenses such as salaries and expenses associated with corporate and administrative functions that support the development and operations of our restaurants, legal, auditing and other professional fees, acquisition costs, pre-opening costs and stock-based compensation expense. Although these costs are not directly related to restaurant-level operations, these expenses are necessary for the profitability of our restaurants. Additionally, this financial measure may not be comparable to a similarly titled caption for other companies. Management believes that Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted net income (loss), when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations in the table above, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Additionally, management believes that Adjusted EBITDA and Adjusted Restaurant-Level EBITDA permit investors to gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced. |
|
|
However, EBITDA, Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted net income (loss) are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss) from operations or cash flow from operating activities as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies. The tables above provide reconciliations between net income (loss) and EBITDA, Adjusted EBITDA and Adjusted net income (loss) and between income (loss) from operations and Adjusted Restaurant-Level EBITDA. |
|
(b) |
Acquisition and integration costs for the three and twelve months ended |
|
(c) |
Pre-opening costs for the three and twelve months ended |
|
(d) |
Legal costs for the three and twelve months ended |
|
(e) |
Other income, net, for the twelve months ended |
|
(f) |
The income tax effect related to the adjustments to net income (loss) during the periods presented was calculated using an incremental income tax rate of 25% for the three and twelve months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200225005307/en/
Investor Relations:
203-682-8253
investorrelations@carrols.com
Source:
Investor Relations:
Raphael Gross
203-682-8253
investorrelations@carrols.com