Carrols Restaurant Group, Inc. Reports Financial Results for the Third Quarter 2020
Burger King Comparable Restaurant Sales Increase 0.8%, up 720 Basis Points Compared to the Second Quarter
Reaffirms Expectation of
Announces Participation in Three Upcoming Investor Conferences
Highlights for the Third Quarter of 2020 versus the Third Quarter of 2019
- Total restaurant sales increased 2.2% to
$407.0 million compared to$398.4 million in the prior year quarter; - Comparable restaurant sales for the Company's Burger King® restaurants increased 0.8%;
- Comparable restaurant sales for the Company’s Popeyes® restaurants increased 5.5%;
- Adjusted EBITDA(1) increased to
$34.1 million from$25.7 million in the prior year quarter; - Adjusted Restaurant-Level EBITDA(1) increased to
$52.8 million from$43.0 million in the prior year quarter; - Net income was
$3.5 million , or$0.06 per diluted share, compared to net loss of$(6.8) million , or$(0.15) per diluted share, in the prior year quarter; - Adjusted Net Income(1) was
$5.7 million , or$0.09 per diluted share, compared to adjusted net loss of$(3.9) million , or$(0.08) per diluted share, in the prior year quarter; and - The Company generated
$23.3 million of Free Cash Flow(2) during the third quarter of 2020 and$46.7 million on a year-to-date basis.
(1) |
Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income/(Loss) are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income (loss) or to income (loss) from operations in the tables at the end of this release. |
|
(2) |
Free Cash Flow is a non-GAAP financial measure and is defined as Net cash provided by operating activities less Net cash used for investing activities adjusted to add back cash paid for acquisitions. Refer to the definition and reconciliation of this measure in the tables at the end of this release. |
Recent Monthly Comparable Restaurant Sales Trends
Monthly comparable restaurant sales increases / (decreases) for the month ending
|
Third Quarter 2020 |
|
||||||
Fiscal Month |
|
|
|
|
||||
Burger King |
2.1% |
1.2% |
(0.8) % |
(3.2) % |
||||
|
13.9 % |
(4.0) % |
11.2 % |
1.9 % |
Management Commentary
Accordino continued, “We generated
“More importantly, looking further into the future, we are poised to re-engage in strong but balanced organic and non-organic growth strategies beginning later in 2021 while keeping our leverage in check. In terms of organic growth, we are in the process of negotiating a restructuring of our Burger King area development agreement with our franchisor. The remodel and new restaurant build commitments that required elevated levels of capital spending on our part under the current agreement are expected to be significantly reduced under the new agreement. Also, we anticipate that we would give up our right-of-first-refusal provision which we believe has diminished value in the current QSR business environment. Under this new arrangement, we believe we will have added flexibility to grow our business as we believe best optimizes our profit growth potential while generating consistent and enhanced free cash flow. It is important to note that while we believe such new agreement will be entered into, it is still being negotiated and there is no assurance that such new agreement will be entered into on such terms or at all."
Accordino concluded, “Although we still are firming up specific new construction and remodel plans for 2021 and beyond, we are committed to executing on our message last quarter of spending
Third Quarter 2020 Financial Results
Total restaurant revenue increased 2.2% to
General and administrative expenses decreased to
Adjusted EBITDA(1) increased to
Income from operations increased to
Interest expense decreased to
Net income was
Adjusted net income(1) was
Balance Sheet Update
The Company ended the third quarter of 2020 with cash and cash equivalents of
As a reminder, the full year 2020 is a 53-week fiscal period ending on
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 13711230. The replay will be available until
Investor Conferences Participation
Carrols will be participating in three upcoming (virtual) investor conferences.
- On
November 18, 2020 , the Company will host investor meetings and participate in a fireside chat at the Stephens Annual Investor Conference. - On
November 19, 2020 , the Company will host investor meetings at the Deutsche Bank 2020 Gaming,Lodging, Leisure & Restaurants Conference . - On
December 10, 2020 , the Company will host investor meetings at theTruist Securities 2020 Gaming, Lodging, Leisure & Restaurants Summit.
About the Company
Carrols is one of the 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, including the impact of COVID-19 on Carrols’ business, as included in Carrols' filings with the
Consolidated Statements of Operations (In thousands, except per share amounts) |
||||||||||||||||
|
(unaudited) |
|
(unaudited) |
|||||||||||||
|
Three Months Ended (a) |
|
Nine Months Ended (a) |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||
Restaurant sales |
$ |
407,036 |
|
|
$ |
398,414 |
|
|
$ |
1,126,972 |
|
|
$ |
1,054,877 |
|
|
Other revenue |
— |
|
|
3,931 |
|
|
— |
|
|
6,816 |
|
|||||
Total revenue |
407,036 |
|
|
402,345 |
|
|
1,126,972 |
|
|
1,061,693 |
|
|||||
Costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Cost of sales |
121,228 |
|
|
121,283 |
|
|
328,858 |
|
|
313,015 |
|
|||||
Restaurant wages and related expenses |
126,040 |
|
|
131,070 |
|
|
362,503 |
|
|
352,402 |
|
|||||
Restaurant rent expense |
30,536 |
|
|
29,300 |
|
|
88,974 |
|
|
77,906 |
|
|||||
Other restaurant operating expenses |
60,486 |
|
|
62,710 |
|
|
172,774 |
|
|
164,623 |
|
|||||
Advertising expense |
15,989 |
|
|
16,052 |
|
|
44,281 |
|
|
42,601 |
|
|||||
General and administrative expenses (b) (c) |
20,440 |
|
|
21,365 |
|
|
59,808 |
|
|
61,709 |
|
|||||
Depreciation and amortization |
19,620 |
|
|
21,200 |
|
|
60,947 |
|
|
53,613 |
|
|||||
Impairment and other lease charges |
1,954 |
|
|
500 |
|
|
7,776 |
|
|
1,777 |
|
|||||
Other expense (income), net (d) |
515 |
|
|
(20) |
|
|
(1,432) |
|
|
(1,773) |
|
|||||
Total costs and expenses |
396,808 |
|
|
403,460 |
|
|
1,124,489 |
|
|
1,065,873 |
|
|||||
Income (loss) from operations |
10,228 |
|
|
(1,115) |
|
|
2,483 |
|
|
(4,180) |
|
|||||
Interest expense |
6,649 |
|
|
7,578 |
|
|
20,159 |
|
|
20,425 |
|
|||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
7,443 |
|
|||||
Income (loss) before income taxes |
3,579 |
|
|
(8,693) |
|
|
(17,676) |
|
|
(32,048) |
|
|||||
Provision (benefit) for income taxes |
48 |
|
|
(1,881) |
|
|
(6,840) |
|
|
(10,035) |
|
|||||
Net income (loss) |
$ |
3,531 |
|
|
$ |
(6,812) |
|
|
$ |
(10,836) |
|
|
$ |
(22,013) |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income (loss) per share (e)(f) |
$ |
0.06 |
|
|
$ |
(0.15) |
|
|
$ |
(0.21) |
|
|
$ |
(0.54) |
|
|
Basic weighted average common shares outstanding |
50,924 |
|
|
45,947 |
|
|
50,887 |
|
|
41,015 |
|
|||||
Diluted weighted average common shares outstanding |
60,543 |
|
|
45,947 |
|
|
50,887 |
|
|
41,015 |
|
(a) |
The Company uses a 52 or 53 week fiscal year that ends on the Sunday closest to |
|
(b) |
General and administrative expenses include acquisition and integration costs of |
|
(c) |
General and administrative expenses include stock-based compensation expense of |
|
(d) |
Other expense (income), net, for the three months ended |
|
(e) |
Basic net income (loss) per share was computed excluding income (loss) attributable to preferred stock and non-vested restricted shares unless the effect would have been anti-dilutive for the periods presented. |
|
(f) |
Diluted net income (loss) per share was computed including 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 |
|
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|
September |
||||||||||
Revenue: |
|
|
|
|
|
|
||||||||||
Burger King restaurant sales |
$ |
385,412 |
|
|
$ |
379,212 |
|
|
$ |
1,060,698 |
|
$ |
1,023,715 |
|
||
|
|
21,624 |
|
|
|
19,202 |
|
|
|
66,274 |
|
|
31,162 |
|
||
Total restaurant sales |
|
407,036 |
|
|
|
398,414 |
|
|
|
1,126,972 |
|
|
1,054,877 |
|
||
Other revenue |
|
— |
|
|
|
3,931 |
|
|
|
— |
|
|
6,816 |
|
||
Total revenue |
$ |
407,036 |
|
|
$ |
402,345 |
|
|
$ |
1,126,972 |
|
$ |
1,061,693 |
|
||
Change in Comparable Burger King Restaurant Sales (a) |
|
0.8 |
% |
|
|
4.5 |
% |
|
|
(3.5 |
)% |
|
2.3 |
% |
||
Change in Comparable Popeyes Restaurant Sales (a) |
|
5.5 |
% |
|
|
|
|
10.1 |
% |
|
||||||
|
|
|
|
|
|
|
||||||||||
Average Weekly Sales per |
$ |
29,282 |
|
|
$ |
28,761 |
|
|
$ |
26,878 |
|
$ |
28,003 |
|
||
Average Weekly Sales per |
$ |
25,590 |
|
|
$ |
24,781 |
|
|
$ |
26,351 |
|
$ |
24,674 |
|
||
|
|
|
|
|
|
|
||||||||||
Adjusted Restaurant-Level EBITDA (c) |
$ |
52,762 |
|
|
$ |
43,004 |
|
|
$ |
129,686 |
|
$ |
113,211 |
|
||
Adjusted Restaurant-Level EBITDA margin (c) |
|
13.0 |
% |
|
|
10.7 |
% |
|
|
11.5 |
% |
|
10.7 |
% |
||
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA (c) |
$ |
34,097 |
|
|
$ |
25,730 |
|
|
$ |
76,085 |
|
$ |
63,607 |
|
||
Adjusted EBITDA margin (c) |
|
8.4 |
% |
|
|
6.4 |
% |
|
|
6.8 |
% |
|
6.0 |
% |
||
|
|
|
|
|
|
|
||||||||||
Adjusted Net Income (Loss) (c) |
$ |
5,740 |
|
|
$ |
(3,859 |
) |
|
$ |
(4,003 |
) |
$ |
(9,089 |
) |
||
Adjusted Diluted Net Income (Loss) per share (c) |
$ |
0.09 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.08 |
) |
$ |
(0.22 |
) |
||
|
|
|
|
|
|
|
||||||||||
Number of Burger King restaurants: |
|
|
|
|
|
|
||||||||||
Restaurants at beginning of period |
|
1,027 |
|
|
|
1,023 |
|
|
|
1,036 |
|
|
849 |
|
||
New restaurants (including offsets) |
|
— |
|
|
|
7 |
|
|
|
6 |
|
|
13 |
|
||
Restaurants acquired |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
179 |
|
||
Restaurants closed (including offsets) |
|
(4 |
) |
|
|
(3 |
) |
|
|
(19 |
) |
|
(13 |
) |
||
Restaurants at end of period |
|
1,023 |
|
|
|
1,028 |
|
|
|
1,023 |
|
|
1,028 |
|
||
Average Number of Burger King restaurants: |
|
1,012.5 |
|
|
|
1,014.1 |
|
|
|
1,011.6 |
|
|
937.3 |
|
||
|
|
|
|
|
|
|
||||||||||
Number of |
|
|
|
|
|
|
||||||||||
Restaurants at beginning of period |
|
65 |
|
|
|
58 |
|
|
|
65 |
|
|
— |
|
||
New restaurants |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
5 |
|
||
Restaurants acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
55 |
|
||
Restaurants at end of period |
|
65 |
|
|
|
60 |
|
|
|
65 |
|
|
60 |
|
||
Average Number of |
|
65.0 |
|
|
|
59.6 |
|
|
|
64.5 |
|
|
32.4 |
|
||
|
At |
|
At |
|||||||||||||
Long-term debt and finance lease liabilities (d) |
$ |
495,748 |
|
$ |
471,149 |
|
||||||||||
Cash and cash equivalents |
67,762 |
|
|
2,974 |
|
(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 39-week period. |
|
|
|
|
(b) |
Average weekly sales per restaurant are derived by dividing restaurant sales for the comparable 13-week or 39-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 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 |
|
||||||||||||||||
|
(unaudited) |
|
(unaudited) |
|||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of EBITDA and Adjusted EBITDA: (a) |
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
3,531 |
|
|
$ |
(6,812) |
|
|
$ |
(10,836) |
|
|
$ |
(22,013) |
|
|
Provision (benefit) for income taxes |
48 |
|
|
(1,881) |
|
|
(6,840) |
|
|
(10,035) |
|
|||||
Interest expense |
6,649 |
|
|
7,578 |
|
|
20,159 |
|
|
20,425 |
|
|||||
Depreciation and amortization |
19,620 |
|
|
21,200 |
|
|
60,947 |
|
|
53,613 |
|
|||||
EBITDA |
29,848 |
|
|
20,085 |
|
|
63,430 |
|
|
41,990 |
|
|||||
Impairment and other lease charges |
1,954 |
|
|
500 |
|
|
7,776 |
|
|
1,777 |
|
|||||
Acquisition and integration costs (b) |
18 |
|
|
2,754 |
|
|
373 |
|
|
7,983 |
|
|||||
Abandoned development costs (c) |
189 |
|
|
82 |
|
|
1,746 |
|
|
193 |
|
|||||
Pre-opening costs (d) |
5 |
|
|
478 |
|
|
104 |
|
|
1,063 |
|
|||||
Litigation costs (e) |
265 |
|
|
144 |
|
|
545 |
|
|
416 |
|
|||||
Other expense (income), net (f)(g) |
515 |
|
|
(20) |
|
|
(1,432) |
|
|
(1,773) |
|
|||||
Stock-based compensation expense |
1,303 |
|
|
1,707 |
|
|
3,543 |
|
|
4,515 |
|
|||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
7,443 |
|
|||||
Adjusted EBITDA |
$ |
34,097 |
|
|
$ |
25,730 |
|
|
$ |
76,085 |
|
|
$ |
63,607 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of Adjusted Restaurant-Level EBITDA: (a) |
|
|
|
|
|
|
|
|||||||||
Income (loss) from operations |
$ |
10,228 |
|
|
$ |
(1,115) |
|
|
$ |
2,483 |
|
|
$ |
(4,180) |
|
|
Add: |
|
|
|
|
|
|
|
|||||||||
General and administrative expenses |
20,440 |
|
|
21,365 |
|
|
59,808 |
|
|
61,709 |
|
|||||
Restaurant integration costs (b) |
— |
|
|
596 |
|
|
— |
|
|
1,002 |
|
|||||
Pre-opening costs (d) |
5 |
|
|
478 |
|
|
104 |
|
|
1,063 |
|
|||||
Depreciation and amortization |
19,620 |
|
|
21,200 |
|
|
60,947 |
|
|
53,613 |
|
|||||
Impairment and other lease charges |
1,954 |
|
|
500 |
|
|
7,776 |
|
|
1,777 |
|
|||||
Other expense (income), net (f)(g) |
515 |
|
|
(20) |
|
|
(1,432) |
|
|
(1,773) |
|
|||||
Adjusted Restaurant-Level EBITDA |
$ |
52,762 |
|
|
$ |
43,004 |
|
|
$ |
129,686 |
|
|
$ |
113,211 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of Adjusted Net Income (Loss): (a) |
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
3,531 |
|
|
$ |
(6,812) |
|
|
$ |
(10,836) |
|
|
$ |
(22,013) |
|
|
Add: |
|
|
|
|
|
|
|
|||||||||
Impairment and other lease charges |
1,954 |
|
|
500 |
|
|
7,776 |
|
|
1,777 |
|
|||||
Acquisition and integration costs (b) |
18 |
|
|
2,754 |
|
|
373 |
|
|
7,983 |
|
|||||
Abandoned development costs (c) |
189 |
|
|
82 |
|
|
1,746 |
|
|
193 |
|
|||||
Pre-opening costs (d) |
5 |
|
|
478 |
|
|
104 |
|
|
1,063 |
|
|||||
Litigation costs (e) |
265 |
|
|
144 |
|
|
545 |
|
|
416 |
|
|||||
Other expense (income), net (f)(g) |
515 |
|
|
(20) |
|
|
(1,432) |
|
|
(1,773) |
|
|||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
7,443 |
|
|||||
Income tax effect on above adjustments (h) |
(737) |
|
|
(985) |
|
|
(2,279) |
|
|
(4,178) |
|
|||||
Adjusted Net Income (Loss) |
$ |
5,740 |
|
|
$ |
(3,859) |
|
|
$ |
(4,003) |
|
|
$ |
(9,089) |
|
|
Adjusted diluted net income (loss) per share (i) |
$ |
0.09 |
|
|
$ |
(0.08) |
|
|
$ |
(0.08) |
|
|
$ |
(0.22) |
|
|
Adjusted diluted weighted average common shares outstanding |
60,543 |
|
|
45,947 |
|
|
50,887 |
|
|
41,015 |
|
|
||||||||||||||||
|
||||||||||||||||
|
(unaudited) |
|
(unaudited) |
|||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of Free Cash Flow: (j) |
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities (k) |
$ |
32,386 |
|
|
$ |
24,184 |
|
|
$ |
80,778 |
|
|
$ |
35,016 |
|
|
Net cash used for investing activities |
(9,039) |
|
|
(55,490) |
|
|
(34,045) |
|
|
(221,802) |
|
|||||
Add: cash paid for acquisitions |
— |
|
|
3,565 |
|
|
— |
|
|
131,545 |
|
|||||
Total Free Cash Flow |
$ |
23,347 |
|
|
$ |
(27,741) |
|
|
$ |
46,733 |
|
|
$ |
(55,241) |
|
(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, abandoned site development, 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, 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, abandoned development costs, pre-opening costs, non-recurring litigation costs, loss on extinguishment of debt 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, restaurant 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 costs for the three and nine months ended |
|
|
||
(c) |
Abandoned development costs for the three and nine months ended |
|
|
||
(d) |
Pre-opening costs for the three and nine months ended |
|
|
||
(e) |
Legal costs for the three and nine months ended |
|
|
||
(f) |
Other expense, net for the three months ended |
|
|
||
(g) |
Other income, net for the nine months ended |
|
|
||
(h) |
The income tax effect related to the adjustments to Adjusted Net Income (Loss) during the periods presented was calculated using an incremental income tax rate of 25% for the three and nine months ended |
|
|
||
(i) |
Adjusted diluted net income (loss) per share is calculated based on Adjusted net income (loss) and the dilutive weighted average common shares outstanding for the respective periods, where applicable. |
|
|
||
(j) |
Free Cash Flow is a non-GAAP financial measure and may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation. Free Cash Flow is defined as cash provided by operating activities less cash used for investing activities, adjusted to add back cash paid for acquisitions. Management believes that Free Cash Flow, when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations in the table above, provides useful information about the Company's cash flow for liquidity purposes and to service the Company's debt. However, Free Cash Flow is not a measure of liquidity under GAAP, and, accordingly should not be considered as an alternative to the Company's consolidated statement of cash flows and net cash provided by operating activities, net cash used for investing activities and net cash provided by financing activities as indicators of liquidity or cash flow. Free Cash Flow for the three months ended |
|
|
||
(k) |
Working capital changes in the three and nine months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005187/en/
Investor Relations:
203-682-8253
investorrelations@carrols.com
Source: