Carrols Restaurant Group, Inc. Reports Financial Results for the Third Quarter of 2011
Highlights for the third quarter of 2011 versus the third quarter of 2010 include:
-
Total revenues increased 5.0% to
$211.8 million in the third quarter of 2011 compared to$201.6 million in the third quarter of 2010. Revenues forFiesta Restaurant Group, Inc. , an indirect wholly-owned subsidiary of the Company that owns and operates the Pollo Tropical and Taco Cabana restaurant businesses, increased 8.9% to$121.2 million from$111.3 million in the same period last year. - Comparable restaurant sales increased 7.9% at Pollo Tropical, 5.3% at Taco Cabana and 1.6% at Burger King;
-
Net income for the third quarter of 2011 was
$3.4 million , or$0.15 per diluted share, compared to net income of$4.6 million , or$0.21 per diluted share in the third quarter of 2010. -
Earnings in the third quarter of 2011 included certain non-recurring
charges of
$2.8 million , or$0.09 per diluted share after tax, including a$2.4 million charge related to the early extinguishment of debt. Earnings in the third quarter of 2010 included an insurance gain of$0.4 million , or$0.01 per diluted share, after tax.
As of
Third Quarter 2011 Results
Total revenues increased 5.0% to
Pollo Tropical revenues increased 10.7% to
Taco Cabana revenues increased 7.5% to
Burger King revenues increased 0.3% to
Income from operations increased to
Interest expense increased to
Net income for the third quarter of 2011 was
Nine Months Results
For the nine months ended
Refinancing
On
2011 Outlook
The Company is not providing specific earnings guidance for 2011.
However, the Company is providing the following updated information
which does not include any impact from the planned spin-off of
- Comparable restaurant sales are expected to increase approximately 8.5% to 9.5% for Pollo Tropical and to increase approximately 3.5% to 4.5% for Taco Cabana. Burger King comparable restaurant sales are expected to be approximately 1% to 2% negative for the full year;
-
Commodity costs are still expected to increase 5% to 6% for
Pollo Tropical, 8% to 9% for Taco Cabana, and 5% to 6% for Burger King; - Fiesta will open a total of six new restaurants, all of which are open. For the balance of the year, the Company plans to close one or two more Burger King restaurants;
-
Total capital expenditures of
$49 million to $51 million ; -
Total interest expense is still anticipated to increase approximately
$2.0 million to $2.5 million in the second half of 2011 as a result of the refinancing of the Company's debt; and - The Company's annual effective tax rate is estimated to be 28% to 29%.
Conference Call Today
The Company will host a conference call to discuss the third quarter
2011 financial results today at
The conference call can be accessed live over the phone by dialing
888-846-5003 or for international callers by dialing 480-629-9856. A
replay will be available one hour after the call and can be accessed by
dialing 800-406-7325 or for international callers by dialing
303-590-3030; the passcode is 4485216. The replay will be available
until
About the Company
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 the Company's
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 or plans, (including, without limitation, the
Company's potential spin-off transaction) 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 the Company's and Carrols Corporation's filings with the
Consolidated Statements of Operations (in thousands except per share amounts) |
||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2011 |
2010 |
2011 |
2010 |
|||||||||||||
Revenues: | ||||||||||||||||
Restaurant sales | $ | 211,380 | $ | 201,272 | $ | 617,596 | $ | 600,080 | ||||||||
Franchise royalty revenues and fees | 376 | 353 | 1,242 | 1,165 | ||||||||||||
Total revenues | 211,756 | 201,625 | 618,838 | 601,245 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales | 65,701 | 60,093 | 192,188 | 182,260 | ||||||||||||
Restaurant wages and related expenses (b) | 60,163 | 59,027 | 178,963 | 177,772 | ||||||||||||
Restaurant rent expense | 12,265 | 12,035 | 36,527 | 36,623 | ||||||||||||
Other restaurant operating expenses | 30,290 | 29,649 | 87,253 | 86,986 | ||||||||||||
Advertising expense | 8,270 | 8,856 | 23,245 | 23,460 | ||||||||||||
General and administrative expenses (b) | 13,702 | 12,022 | 41,307 | 37,196 | ||||||||||||
Depreciation and amortization | 8,246 | 8,080 | 24,743 | 24,315 | ||||||||||||
Impairment and other lease charges | (11 | ) | 191 | 2,044 | 4,092 | |||||||||||
Other loss (income) | 105 | (400 | ) | (343 | ) | (400 | ) | |||||||||
Total costs and expenses | 198,731 | 189,553 | 585,927 | 572,304 | ||||||||||||
Income from operations | 13,025 | 12,072 | 32,911 | 28,941 | ||||||||||||
Interest expense | 5,757 | 4,693 | 14,949 | 14,144 | ||||||||||||
Loss on extinguishment of debt | 2,449 | - | 2,449 | - | ||||||||||||
Income before income taxes | 4,819 | 7,379 | 15,513 | 14,797 | ||||||||||||
Provision for income taxes | 1,414 | 2,786 | 4,354 | 5,455 | ||||||||||||
Net income | $ | 3,405 | $ | 4,593 | $ | 11,159 | $ | 9,342 | ||||||||
Basic net income per share | $ | 0.16 | $ | 0.21 | $ | 0.52 | $ | 0.43 | ||||||||
Diluted net income per share | $ | 0.15 | $ | 0.21 | $ | 0.50 | $ | 0.43 | ||||||||
Basic weighted average common shares outstanding |
21,691 |
|
21,623 |
21,666 |
21,619 |
|||||||||||
Diluted weighted average common shares outstanding |
22,233 |
21,777 |
22,154 |
21,820 |
(a) |
The Company uses a 52 or 53 week fiscal year that ends on the Sunday
closest to |
|
(b) |
Restaurant wages and related expenses include stock-based
compensation expense of |
|
|
||||||||
The following table sets forth certain unaudited supplemental financial and other restaurant data |
||||||||
for the periods indicated (in thousands, except number of restaurants): |
||||||||
(unaudited) | (unaudited) | |||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
Segment revenues: | ||||||||
Burger King |
|
|
|
|
||||
Pollo Tropical | 52,675 | 47,567 | 157,553 | 139,873 | ||||
Taco Cabana | 68,482 | 63,702 | 200,469 | 189,941 | ||||
Total revenues |
|
|
|
|
||||
Change in comparable restaurant sales: (a) | ||||||||
Burger King | 1.6% | (3.2)% | (2.3)% | (3.7)% | ||||
Pollo Tropical | 7.9% | 8.8% | 10.6% | 6.3% | ||||
Taco Cabana | 5.3% | 1.0% | 4.0% | (0.3)% | ||||
Adjusted Segment EBITDA: (b) | ||||||||
Burger King |
|
|
|
|
||||
Pollo Tropical | 8,582 | 7,489 | 28,222 | 22,361 | ||||
Taco Cabana | 7,353 | 6,483 | 20,849 | 20,117 | ||||
Average sales per restaurant: (c) | ||||||||
Burger King |
|
|
|
|
||||
Pollo Tropical | 583 | 526 | 1,739 | 1,538 | ||||
Taco Cabana | 435 | 409 | 1,279 | 1,219 | ||||
New restaurant openings: | ||||||||
Burger King | - | - | 2 | 1 | ||||
Pollo Tropical | 2 | - | 2 | - | ||||
Taco Cabana | 1 | 1 | 4 | 1 | ||||
Total new restaurant openings | 3 | 1 | 8 | 2 | ||||
Restaurant closings: | ||||||||
Burger King | (1) | (3) | (5) | (7) | ||||
Pollo Tropical | (1) | - | (2) | (1) | ||||
Taco Cabana | - | - | (1) | (1) | ||||
Net new restaurants | 1 | (2) | - | (7) | ||||
Number of company owned restaurants: | ||||||||
Burger King | 302 | 306 | ||||||
Pollo Tropical | 91 | 90 | ||||||
Taco Cabana | 158 | 156 | ||||||
Total company owned restaurants | 551 | 552 | ||||||
At |
At |
|||||||
Long-term debt (d) |
|
|
(a) | Restaurants are included in comparable restaurant sales after they have been open for 12 months for Burger King restaurants and 18 months for Pollo Tropical and Taco Cabana restaurants. | |
(b) |
Adjusted Segment EBITDA is defined as earnings attributable to the
applicable segment before interest, income taxes, depreciation and
amortization, impairment and other lease charges, stock-based
compensation expense, other income and expense and gains or losses
on extinguishment of debt. Adjusted Segment EBITDA is used because
it is the measure of segment profit or loss reported to our chief
operating decision maker for purposes of allocating resources to the
segments and assessing each segment's performance. This may not be
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation. Adjusted
Segment EBITDA for our Burger King restaurants includes general and
administrative expenses related directly to the Burger King segment
as well as the expenses associated with administrative support to
all three of the Company's segments including executive management,
information systems and certain accounting, legal and other
administrative functions. For the three and nine months ended
|
|
(c) | Average sales for company-owned or operated restaurants are derived by dividing restaurant sales for such period for the applicable segment by the average number of restaurants for the applicable segment for such period. | |
(d) |
Long-term debt (including current portion) at |
Investor Relations:
800-348-1074,
ext. 3333
Source:
News Provided by Acquire Media