TAMPA, Fla., Aug. 4, 2015
/PRNewswire/ -- Bloomin' Brands, Inc. (Nasdaq: BLMN) today
reported financial results for the second quarter ("Q2 2015") ended
June 28, 2015 compared to the second quarter ("Q2 2014") ended
June 29, 2014.
Key highlights for Q2 2015 include the following:
- Comparable sales for Company-owned U.S. concepts increased
2.0%
- Comparable sales for Outback Steakhouse restaurants in
Brazil increased 3.4%
- System-wide development was 14 new restaurants including nine
International restaurants
- Adjusted restaurant margin was 16.2% versus 16.1% in Q2 2014
and U.S. GAAP restaurant margin was 16.5% versus 16.1% in Q2
2014
Subsequent to Q2 2015:
- The Company's Board of Directors approved a new $100.0 million share repurchase program
- Moody's upgraded the Company's Corporate Family Rating two
notches to Ba2
Adjusted Diluted EPS and Diluted EPS
The following table reconciles Adjusted diluted earnings per
share to Diluted earnings per share for the periods as indicated
below.
|
Q2
2015
|
|
Q2
2014
|
|
CHANGE
|
Adjusted diluted
earnings per share
|
$
|
0.28
|
|
|
$
|
0.27
|
|
|
$
|
0.01
|
|
Adjustments
|
(0.02)
|
|
|
(0.06)
|
|
|
0.04
|
|
Diluted earnings per
share
|
$
|
0.26
|
|
|
$
|
0.21
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
_______________________
See Non-GAAP Measures later in this release.
CEO Comments
"We are pleased with the results for the quarter driven by
continued strong performances at Outback, Fleming's and
Brazil, and positive momentum at
Carrabba's," said Elizabeth Smith,
CEO. "The strength of our portfolio more than offsets traffic
declines at Bonefish Grill which is returning to their polished
casual roots. We are well-positioned to deliver on our 2015
EPS guidance of at least $1.27."
Second Quarter Financial Results
The following summarizes the Company's results for Q2 2015 and
Q2 2014:
(dollars in
millions)
|
Q2
2015
|
|
Q2
2014
|
|
%
Change
|
Total
revenues
|
$
|
1,099.6
|
|
|
$
|
1,110.9
|
|
|
(1.0)
|
%
|
|
|
|
|
|
|
Adjusted restaurant
level operating margin
|
16.2
|
%
|
|
16.1
|
%
|
|
0.1
|
%
|
U.S. GAAP restaurant
level operating margin
|
16.5
|
%
|
|
16.1
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
Adjusted operating
income margin
|
5.6
|
%
|
|
5.8
|
%
|
|
(0.2)
|
%
|
U.S. GAAP operating
income margin
|
5.7
|
%
|
|
5.6
|
%
|
|
0.1
|
%
|
- The decrease in Total revenues was primarily due to the effect
of foreign currency translation and was partially offset by the net
benefit of new restaurant openings and closings.
- The increase in Adjusted restaurant-level operating margin was
primarily due to productivity savings and higher U.S. average unit
volumes. These increases were partially offset by commodity
and wage rate inflation.
- The decrease in Adjusted operating income margin was driven by
higher general and administrative expense primarily related to the
lapping of lower incentive compensation in Q2 2014.
- The difference between Adjusted and U.S. GAAP restaurant-level
operating margins and operating income margins in Q2 2015 was
primarily due to the favorable resolution of the 2011 payroll tax
audit contingency in 2015.
Second Quarter Comparable Restaurant Sales
THIRTEEN WEEKS
ENDED JUNE 28, 2015
|
|
COMPANY-
OWNED
|
Comparable restaurant
sales (stores open 18 months or more) (1) (2):
|
|
|
U.S.
|
|
|
Outback
Steakhouse
|
|
4.0
|
%
|
Carrabba's Italian
Grill
|
|
0.9
|
%
|
Bonefish
Grill
|
|
(4.6)
|
%
|
Fleming's Prime
Steakhouse & Wine Bar
|
|
3.2
|
%
|
Combined
U.S.
|
|
2.0
|
%
|
|
|
|
International
|
|
|
Outback Steakhouse -
Brazil
|
|
3.4
|
%
|
Outback Steakhouse -
South Korea
|
|
(11.8)
|
%
|
_______________________
(1)
|
Comparable restaurant
sales exclude the effect of fluctuations in foreign currency
rates.
|
(2)
|
Relocated
international restaurants closed more than 30 days and relocated
U.S. restaurants closed more than 60 days are excluded from
comparable restaurant sales until at least 18 months after
reopening.
|
U.S. Segment Operating Results
(dollars in
millions)
|
Q2
2015
|
|
Q2
2014
|
|
%
Change
|
U.S.
|
|
|
|
|
|
Total
revenues
|
$
|
983.0
|
|
|
$
|
967.0
|
|
|
1.6
|
%
|
|
|
|
|
|
|
Adjusted
restaurant-level operating margin
|
15.6
|
%
|
|
15.2
|
%
|
|
0.4
|
%
|
U.S. GAAP
restaurant-level operating margin
|
15.6
|
%
|
|
15.2
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
Adjusted operating
income margin
|
9.5
|
%
|
|
8.4
|
%
|
|
1.1
|
%
|
U.S. GAAP operating
income margin
|
9.5
|
%
|
|
8.4
|
%
|
|
1.1
|
%
|
- The increases in Adjusted and U.S. GAAP operating income margin
were primarily due to productivity savings, higher average unit
volumes, and lower general and administrative expenses due to the
Company's organizational realignment in the second half of
2014.
International Segment Operating Results
(dollars in
millions)
|
Q2
2015
|
|
Q2
2014
|
|
%
Change
|
International
|
|
|
|
|
|
Total
revenues
|
$
|
116.6
|
|
|
$
|
143.9
|
|
|
(18.9)
|
%
|
|
|
|
|
|
|
Adjusted
restaurant-level operating margin
|
16.9
|
%
|
|
17.3
|
%
|
|
(0.4)
|
%
|
U.S. GAAP
restaurant-level operating margin
|
16.8
|
%
|
|
17.2
|
%
|
|
(0.4)
|
%
|
|
|
|
|
|
|
Adjusted operating
income margin
|
5.8
|
%
|
|
6.8
|
%
|
|
(1.0)
|
%
|
U.S. GAAP operating
income margin
|
4.9
|
%
|
|
5.8
|
%
|
|
(0.9)
|
%
|
- The decrease in Total revenues is primarily due to foreign
currency translation and the impact of the International Restaurant
Closure Initiative.
- The decrease in Adjusted and U.S. GAAP operating income margin
was primarily due to commodity and labor inflation as well as
investment spending related to the launching of Abbraccio in
Brazil. This decrease was partially offset by new restaurant
openings, productivity savings and pricing.
- Foreign currency translation negatively impacted adjusted
income from operations by $2.4
million.
Unallocated Corporate Operating Expense
Certain expenses are managed centrally and are not allocated to
the U.S. or International segment. In total, Q2 2015 unallocated
expenses were $36.4 million, which
was $9.2 million higher than Q2
2014. The increase is primarily due to the lapping of lower
incentive compensation expense in Q2 2014, which is included in
consolidated operating margins.
System-wide Development
The following summarizes our system-wide development for the
thirteen weeks ended June 28,
2015:
|
MARCH 29,
2015
|
|
OPENINGS
|
|
CLOSURES
|
|
JUNE 28,
2015
|
U.S.:
|
|
|
|
|
|
|
|
Outback
Steakhouse—Company-owned
|
649
|
|
|
2
|
|
|
(2)
|
|
|
649
|
|
Bonefish
Grill—Company-owned
|
204
|
|
|
3
|
|
|
—
|
|
|
207
|
|
|
|
|
|
|
|
|
|
International:
|
|
|
|
|
|
|
|
Company-owned
|
|
|
|
|
|
|
|
Outback
Steakhouse—South Korea
|
75
|
|
|
2
|
|
|
(1)
|
|
|
76
|
|
Outback
Steakhouse—Brazil
|
64
|
|
|
5
|
|
|
—
|
|
|
69
|
|
Other
|
10
|
|
|
2
|
|
|
—
|
|
|
12
|
|
System-wide
development
|
|
|
14
|
|
|
(3)
|
|
|
|
Dividend Declaration and Share Repurchases
The Company's Board of Directors declared a quarterly cash
dividend of $0.06 per share to be
paid on August 28, 2015 to all stockholders of record as of
the close of business on August 18, 2015.
During Q2 2015, the Company repurchased $30.0 million of common stock, which completes
the December 2014 share repurchase
program. On August 3, 2015, the
Company's Board of Directors approved a new $100.0 million share repurchase program. The
authorization will expire on February 3, 2017.
Other Events
On July 21, 2015, Moody's upgraded
the Company's Corporate Family Rating to Ba2, two steps below
investment grade rating. This upgrade reflects the improved
operating performance and lower funded debt levels at the operating
company.
Fiscal 2015 Financial Outlook
The Company is reaffirming its full-year Adjusted diluted
earnings per share guidance of at least $1.27.
The Company has revised guidance on the following items for the
full year 2015:
- Blended U.S. comparable restaurant sales growth is expected to
be approximately 1.5% versus prior guidance of "at least"
1.5%. This change is primarily due to lower sales
expectations at Bonefish.
- Total Revenues are expected to be approximately $4.43 billion versus prior guidance of "at least"
$4.43 billion.
- Commodity inflation range is now expected to be 3.5% to 4.0%
versus prior guidance of 4.0% to 6.0%. This change reflects
continued improvement in seafood and dairy.
- Capital expenditures are now expected to be between
$225 million to $235 million versus
prior guidance of $235 million to $255
million.
All other elements of the fiscal 2015 guidance included in the
February 19, 2015 release remain intact.
Non-GAAP Measures
In addition to the results provided in accordance with U.S.
GAAP, this press release and related tables include certain
non-GAAP measures which present operating results on an adjusted
basis. These are supplemental measures of performance that are not
required by or presented in accordance with U.S. GAAP and include
the following: (i) Adjusted restaurant-level operating margin, (ii)
Adjusted income from operations and the corresponding margin, (iii)
Adjusted net income, (iv) Adjusted diluted earnings per share, (v)
Adjusted segment restaurant-level operating margin and (vi)
Adjusted segment income from operations and the corresponding
margin.
Although we believe these non-GAAP measures enhance investors'
understanding of our business and performance, these non-GAAP
financial measures are not intended to replace U.S. GAAP financial
measures. These metrics are not necessarily comparable to similarly
titled measures used by other companies. The use of non-GAAP
financial measures permits investors to assess the operating
performance of our business relative to our performance based on
U.S. GAAP results and relative to other companies within the
restaurant industry by isolating the effects of certain items that
vary from period to period without correlation to core operating
performance or that vary widely among similar companies. However,
our inclusion of these adjusted measures should not be construed as
an indication that our future results will be unaffected by unusual
or infrequent items or that the items for which we have made
adjustments are unusual or infrequent. We believe that the
disclosure of these non-GAAP measures is useful to investors as
they form the basis for how our management team and Board of
Directors evaluate our operating performance, allocate resources
and establish employee incentive plans.
For reconciliations of the non-GAAP measures used in this
release, refer to tables four, five, six, and seven included
later in this release.
Conference Call
The Company will host a conference call today, August 4,
2015 at 9:00 AM ET. The conference
call can be accessed live over the telephone by dialing (888)
455-2263, or (719) 325-2144 for international participants. A
replay will be available beginning two hours after the call and can
be accessed by dialing (877) 870-5176 or (858) 384-5517 for
international callers; the conference ID is 8090188. The replay
will be available through Tuesday, August
11, 2015. The call will also be webcast live from the
Company's website at http://www.bloominbrands.com under the
Investors section. A replay of this webcast will be available on
the Company's website after the call.
About Bloomin' Brands, Inc.
Bloomin' Brands, Inc. is one of the largest casual dining
restaurant companies in the world with a portfolio of leading,
differentiated restaurant concepts. The Company has four
founder-inspired brands: Outback Steakhouse, Carrabba's Italian
Grill, Bonefish Grill and Fleming's Prime Steakhouse
& Wine Bar. The Company operates approximately 1,500
restaurants in 48 states, Puerto Rico, Guam and 22
countries, some of which are franchise locations. For more
information, please visit bloominbrands.com.
Forward-Looking Statements
Certain statements contained herein, including statements under
the headings "CEO Comments" and "Fiscal 2015 Financial Outlook,"
are not based on historical fact and are "forward-looking
statements" within the meaning of applicable securities laws.
Generally, these statements can be identified by the use of words
such as "guidance," "believes," "estimates," "anticipates,"
"expects," "on track," "feels," "forecasts," "seeks," "projects,"
"intends," "plans," "may," "will," "should," "could," "would" and
similar expressions intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. These forward-looking statements include
all matters that are not historical facts. By their nature,
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from the Company's
forward-looking statements. These risks and uncertainties include,
but are not limited to: local, regional, national and international
economic conditions; consumer confidence and spending patterns;
challenges associated with new restaurant development; our ability
to preserve the value of our brands; price and availability of
commodities; weather, acts of God and other disasters; the
seasonality of the Company's business; increases in unemployment
rates and taxes; increases in labor costs; competition; changes in
patterns of consumer traffic, consumer tastes and dietary habits;
consumer reaction to public health and food safety issues;
government actions and policies; foreign currency exchange rates;
interruption or breach of our systems or loss of consumer or
employee information; interest rate changes, compliance with debt
covenants and the Company's ability to make debt payments; the cost
and availability of credit; and our ability to continue to pay
dividends. Further information on potential factors that could
affect the financial results of the Company and its forward-looking
statements is included in its most recent Form 10-K filed with the
Securities and Exchange Commission. The Company assumes no
obligation to update any forward-looking statement, except as may
be required by law. These forward-looking statements speak only as
of the date of this release. All forward-looking statements are
qualified in their entirety by this cautionary statement.
Note: Numerical figures included in this release have been
subject to rounding adjustments.
TABLE
ONE
|
BLOOMIN' BRANDS,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(dollars in
thousands, except per share data)
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
Revenues
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
1,092,759
|
|
|
$
|
1,104,437
|
|
|
$
|
2,287,569
|
|
|
$
|
2,254,962
|
|
Other
revenues
|
6,838
|
|
|
6,475
|
|
|
14,087
|
|
|
13,809
|
|
Total
revenues
|
1,099,597
|
|
|
1,110,912
|
|
|
2,301,656
|
|
|
2,268,771
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of
sales
|
357,455
|
|
|
358,856
|
|
|
744,923
|
|
|
732,470
|
|
Labor and other
related
|
301,039
|
|
|
302,472
|
|
|
625,025
|
|
|
613,890
|
|
Other restaurant
operating
|
254,281
|
|
|
265,279
|
|
|
518,319
|
|
|
521,797
|
|
Depreciation and
amortization
|
47,375
|
|
|
48,627
|
|
|
93,861
|
|
|
94,792
|
|
General and
administrative
|
75,962
|
|
|
72,262
|
|
|
149,209
|
|
|
146,316
|
|
Provision for
impaired assets and restaurant closings
|
900
|
|
|
1,025
|
|
|
10,033
|
|
|
7,089
|
|
Total costs and
expenses
|
1,037,012
|
|
|
1,048,521
|
|
|
2,141,370
|
|
|
2,116,354
|
|
Income from
operations
|
62,585
|
|
|
62,391
|
|
|
160,286
|
|
|
152,417
|
|
Loss on
extinguishment and modification of debt
|
(2,638)
|
|
|
(11,092)
|
|
|
(2,638)
|
|
|
(11,092)
|
|
Other income
(expense), net
|
57
|
|
|
317
|
|
|
(1,090)
|
|
|
153
|
|
Interest expense,
net
|
(12,867)
|
|
|
(15,109)
|
|
|
(26,065)
|
|
|
(31,707)
|
|
Income before
provision for income taxes
|
47,137
|
|
|
36,507
|
|
|
130,493
|
|
|
109,771
|
|
Provision for income
taxes
|
14,081
|
|
|
8,785
|
|
|
35,355
|
|
|
26,949
|
|
Net income
|
33,056
|
|
|
27,722
|
|
|
95,138
|
|
|
82,822
|
|
Less: net income
attributable to noncontrolling interests
|
830
|
|
|
1,331
|
|
|
2,324
|
|
|
2,698
|
|
Net income
attributable to Bloomin' Brands
|
$
|
32,226
|
|
|
$
|
26,391
|
|
|
$
|
92,814
|
|
|
$
|
80,124
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
33,056
|
|
|
$
|
27,722
|
|
|
$
|
95,138
|
|
|
$
|
82,822
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(26,182)
|
|
|
19,088
|
|
|
(51,644)
|
|
|
13,723
|
|
Unrealized gains
(losses) on derivatives, net of tax
|
844
|
|
|
—
|
|
|
(3,168)
|
|
|
—
|
|
Comprehensive
income
|
7,718
|
|
|
46,810
|
|
|
40,326
|
|
|
96,545
|
|
Less: comprehensive
income attributable to noncontrolling interests
|
830
|
|
|
1,331
|
|
|
2,324
|
|
|
2,698
|
|
Comprehensive income
attributable to Bloomin' Brands
|
$
|
6,888
|
|
|
$
|
45,479
|
|
|
$
|
38,002
|
|
|
$
|
93,847
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.26
|
|
|
$
|
0.21
|
|
|
$
|
0.75
|
|
|
$
|
0.64
|
|
Diluted
|
$
|
0.26
|
|
|
$
|
0.21
|
|
|
$
|
0.73
|
|
|
$
|
0.63
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
123,046
|
|
|
125,229
|
|
|
124,174
|
|
|
124,889
|
|
Diluted
|
126,242
|
|
|
128,378
|
|
|
127,501
|
|
|
128,115
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
0.06
|
|
|
$
|
—
|
|
|
$
|
0.12
|
|
|
$
|
—
|
|
TABLE
TWO
|
BLOOMIN' BRANDS,
INC.
|
SEGMENT
RESULTS
|
(UNAUDITED)
|
(dollars in
thousands)
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
U.S.
Segment
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
Revenues
|
|
|
|
|
|
|
|
Restaurant
Sales
|
$
|
977,260
|
|
|
$
|
961,608
|
|
|
$
|
2,033,364
|
|
|
$
|
1,966,483
|
|
Other
Revenues
|
5,718
|
|
|
5,435
|
|
|
11,628
|
|
|
11,186
|
|
Total
revenues
|
$
|
982,978
|
|
|
$
|
967,043
|
|
|
$
|
2,044,992
|
|
|
$
|
1,977,669
|
|
Restaurant-level
operating margin
|
15.6
|
%
|
|
15.2
|
%
|
|
16.8
|
%
|
|
16.4
|
%
|
Income from
operations
|
$
|
93,265
|
|
|
$
|
81,268
|
|
|
$
|
220,673
|
|
|
$
|
188,169
|
|
Operating income
margin
|
9.5
|
%
|
|
8.4
|
%
|
|
10.8
|
%
|
|
9.5
|
%
|
International
Segment
|
|
Revenues
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
115,499
|
|
|
$
|
142,829
|
|
|
$
|
254,205
|
|
|
$
|
288,479
|
|
Other
revenues
|
1,120
|
|
|
1,040
|
|
|
2,459
|
|
|
2,623
|
|
Total
revenues
|
$
|
116,619
|
|
|
$
|
143,869
|
|
|
$
|
256,664
|
|
|
$
|
291,102
|
|
Restaurant-level
operating margin
|
16.8
|
%
|
|
17.2
|
%
|
|
19.5
|
%
|
|
18.6
|
%
|
Income from
operations
|
$
|
5,727
|
|
|
$
|
8,282
|
|
|
$
|
14,606
|
|
|
$
|
24,507
|
|
Operating income
margin
|
4.9
|
%
|
|
5.8
|
%
|
|
5.7
|
%
|
|
8.4
|
%
|
Reconciliation of
Segment Income from Operations to Consolidated Income from
Operations
|
|
|
|
|
|
|
|
Segment income from
operations
|
|
|
|
|
|
|
|
U.S.
|
$
|
93,265
|
|
|
$
|
81,268
|
|
|
$
|
220,673
|
|
|
$
|
188,169
|
|
International
|
5,727
|
|
|
8,282
|
|
|
14,606
|
|
|
24,507
|
|
Total segment income
from operations
|
98,992
|
|
|
89,550
|
|
|
235,279
|
|
|
212,676
|
|
Unallocated corporate
operating expense - Cost of sales, Labor and other related and
Other restaurant operating
|
7,977
|
|
|
6,728
|
|
|
7,689
|
|
|
11,322
|
|
Unallocated corporate
operating expense - Depreciation and amortization and General and
administrative
|
(44,384)
|
|
|
(33,887)
|
|
|
(82,682)
|
|
|
(71,581)
|
|
Unallocated corporate
operating expense
|
(36,407)
|
|
|
(27,159)
|
|
|
(74,993)
|
|
|
(60,259)
|
|
Total income from
operations
|
$
|
62,585
|
|
|
$
|
62,391
|
|
|
$
|
160,286
|
|
|
$
|
152,417
|
|
TABLE
THREE
|
BLOOMIN' BRANDS,
INC.
|
SUPPLEMENTAL
BALANCE SHEET INFORMATION
|
(UNAUDITED)
|
(dollars in
thousands)
|
JUNE 28,
2015
|
|
DECEMBER 28,
2014
|
Cash and cash
equivalents (1)
|
$
|
132,772
|
|
|
$
|
165,744
|
|
Net working capital
(deficit) (2)
|
$
|
(256,015)
|
|
|
$
|
(239,559)
|
|
Total
assets
|
$
|
3,144,735
|
|
|
$
|
3,344,286
|
|
Total debt,
net
|
$
|
1,320,917
|
|
|
$
|
1,315,843
|
|
Total stockholders'
equity
|
$
|
495,948
|
|
|
$
|
556,449
|
|
_______________________
(1)
|
Excludes restricted
cash.
|
(2)
|
The Company has, and
in the future may continue to have, negative working capital
balances (as is common for many restaurant companies). The Company
operates successfully with negative working capital because cash
collected on Restaurant sales is typically received before payment
is due on its current liabilities and its inventory turnover rates
require relatively low investment in inventories. Additionally,
ongoing cash flows from restaurant operations and gift card sales
are used to service debt obligations and to make capital
expenditures.
|
TABLE
FOUR
|
BLOOMIN' BRANDS,
INC.
|
RESTAURANT-LEVEL
OPERATING MARGIN NON-GAAP RECONCILIATION
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
(UNFAVORABLE)
FAVORABLE CHANGE IN ADJUSTED
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
|
U.S.
GAAP
|
|
ADJUSTED
(1)
|
|
U.S.
GAAP
|
|
ADJUSTED
(2)
|
|
QUARTER TO
DATE
|
Restaurant
sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
32.7
|
%
|
|
32.7
|
%
|
|
32.5
|
%
|
|
32.5
|
%
|
|
(0.2)
|
%
|
Labor and other
related
|
27.5
|
%
|
|
27.8
|
%
|
|
27.4
|
%
|
|
27.4
|
%
|
|
(0.4)
|
%
|
Other restaurant
operating
|
23.3
|
%
|
|
23.3
|
%
|
|
24.0
|
%
|
|
24.0
|
%
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Restaurant-level
operating margin
|
16.5
|
%
|
|
16.2
|
%
|
|
16.1
|
%
|
|
16.1
|
%
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
TWENTY-SIX WEEKS
ENDED
|
|
(UNFAVORABLE)
FAVORABLE CHANGE IN ADJUSTED
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
|
U.S.
GAAP
|
|
ADJUSTED
(1)
|
|
U.S.
GAAP
|
|
ADJUSTED
(3)
|
|
YEAR TO
DATE
|
Restaurant
sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
32.6
|
%
|
|
32.6
|
%
|
|
32.5
|
%
|
|
32.5
|
%
|
|
(0.1)
|
%
|
Labor and other
related
|
27.3
|
%
|
|
27.4
|
%
|
|
27.2
|
%
|
|
27.2
|
%
|
|
(0.2)
|
%
|
Other restaurant
operating
|
22.7
|
%
|
|
22.7
|
%
|
|
23.1
|
%
|
|
23.2
|
%
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Restaurant-level
operating margin
|
17.5
|
%
|
|
17.3
|
%
|
|
17.2
|
%
|
|
17.1
|
%
|
|
0.2
|
%
|
_______________________
(1)
|
Includes a $2.7
million adjustment for payroll tax audit contingencies, which was
recorded in Labor and other related.
|
(2)
|
No adjustments
impacted Restaurant-level operating margins during the thirteen
weeks ended June 29, 2014.
|
(3)
|
Includes an
adjustment for the deferred rent liability write-off associated
with the Domestic Restaurant Closure Initiative, which was recorded
in Other restaurant operating during the twenty-six weeks ended
June 29, 2014.
|
TABLE
FIVE
|
BLOOMIN' BRANDS,
INC.
|
SEGMENT
RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP
RECONCILIATION
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
(UNFAVORABLE)
FAVORABLE CHANGE IN ADJUSTED
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
Restaurant-level
operating margin:
|
U.S.
GAAP
|
|
ADJUSTED
|
|
U.S.
GAAP
|
|
ADJUSTED
|
|
QUARTER TO
DATE
|
U.S. (1)
|
15.6
|
%
|
|
15.6
|
%
|
|
15.2
|
%
|
|
15.2
|
%
|
|
0.4
|
%
|
International
(2)
|
16.8
|
%
|
|
16.9
|
%
|
|
17.2
|
%
|
|
17.3
|
%
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
TWENTY-SIX WEEKS
ENDED
|
|
(UNFAVORABLE)
FAVORABLE CHANGE IN ADJUSTED
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
Restaurant-level
operating margin:
|
U.S.
GAAP
|
|
ADJUSTED
|
|
U.S.
GAAP
|
|
ADJUSTED
|
|
YEAR TO
DATE
|
U.S. (1)
|
16.8
|
%
|
|
16.8
|
%
|
|
16.4
|
%
|
|
16.3
|
%
|
|
0.5
|
%
|
International
(2)
|
19.5
|
%
|
|
19.5
|
%
|
|
18.6
|
%
|
|
18.7
|
%
|
|
0.8
|
%
|
_______________________
(1)
|
The twenty-six weeks
ended June 29, 2014 includes an adjustment for the write-off of
$2.1 million of deferred rent liabilities associated with the
Domestic Restaurant Closure Initiative.
|
(2)
|
Includes adjustments
of $0.1 million of Brazil non-cash intangible amortization for the
thirteen weeks ended June 28, 2015 and June 29, 2014, respectively,
and $0.2 million for the twenty-six weeks ended June 29,
2014.
|
TABLE
SIX
|
BLOOMIN' BRANDS,
INC.
|
INCOME FROM
OPERATIONS, NET INCOME AND DILUTED EARNINGS PER SHARE NON-GAAP
RECONCILIATION
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(in thousands,
except per share data)
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
Income from
operations
|
$
|
62,585
|
|
|
$
|
62,391
|
|
|
$
|
160,286
|
|
|
$
|
152,417
|
|
Operating income
margin
|
5.7
|
%
|
|
5.6
|
%
|
|
7.0
|
%
|
|
6.7
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Restaurant
impairments and closing costs (1)
|
(63)
|
|
|
—
|
|
|
8,807
|
|
|
4,929
|
|
Payroll tax audit
contingency (2)
|
(2,671)
|
|
|
—
|
|
|
(2,671)
|
|
|
—
|
|
Purchased intangibles
amortization (3)
|
1,123
|
|
|
1,532
|
|
|
2,406
|
|
|
2,990
|
|
Restaurant
relocations and related costs (4)
|
122
|
|
|
—
|
|
|
1,291
|
|
|
—
|
|
Asset impairments and
related costs (5)
|
746
|
|
|
—
|
|
|
746
|
|
|
—
|
|
Transaction-related
expenses (6)
|
40
|
|
|
—
|
|
|
315
|
|
|
1,118
|
|
Total income from
operations adjustments
|
(703)
|
|
|
1,532
|
|
|
10,894
|
|
|
9,037
|
|
Adjusted income from
operations
|
$
|
61,882
|
|
|
$
|
63,923
|
|
|
$
|
171,180
|
|
|
$
|
161,454
|
|
Adjusted operating
income margin
|
5.6
|
%
|
|
5.8
|
%
|
|
7.4
|
%
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
Net income
attributable to Bloomin' Brands
|
$
|
32,226
|
|
|
$
|
26,391
|
|
|
$
|
92,814
|
|
|
$
|
80,124
|
|
Adjustments:
|
|
|
|
|
|
|
|
Income from
operations adjustments
|
(703)
|
|
|
1,532
|
|
|
10,894
|
|
|
9,037
|
|
Loss on disposal of
business (7)
|
(121)
|
|
|
—
|
|
|
1,030
|
|
|
—
|
|
Loss on
extinguishment and modification of debt (8)
|
2,638
|
|
|
11,092
|
|
|
2,638
|
|
|
11,092
|
|
Total adjustments,
before income taxes
|
1,814
|
|
|
12,624
|
|
|
14,562
|
|
|
20,129
|
|
Adjustment to
provision for income taxes (9)
|
1,047
|
|
|
(4,847)
|
|
|
(2,580)
|
|
|
(7,542)
|
|
Net
adjustments
|
2,861
|
|
|
7,777
|
|
|
11,982
|
|
|
12,587
|
|
Adjusted net
income
|
$
|
35,087
|
|
|
$
|
34,168
|
|
|
$
|
104,796
|
|
|
$
|
92,711
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.26
|
|
|
$
|
0.21
|
|
|
$
|
0.73
|
|
|
$
|
0.63
|
|
Adjusted diluted
earnings per share
|
$
|
0.28
|
|
|
$
|
0.27
|
|
|
$
|
0.82
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
126,242
|
|
|
128,378
|
|
|
127,501
|
|
|
128,115
|
|
_______________________
(1)
|
Represents expenses
incurred in the thirteen and twenty-six weeks ended June 28, 2015
for the International and Domestic Restaurant Closure Initiatives
and expenses incurred for the Domestic Restaurant Closure
Initiative during the twenty-six weeks ended June 29,
2014.
|
(2)
|
Relates to a payroll
tax audit contingency adjustment for the employer's share of FICA
taxes related to cash tips allegedly received and unreported by our
employees during calendar year 2011, which is recorded in Labor and
other related expenses. In addition, a deferred income tax
adjustment has been recorded for the allowable income tax credits
for the employer's share of FICA taxes expected to be paid, which
is included in (Benefit) provision for income taxes and offsets the
adjustment to Labor and other related expenses. As a result, there
is no impact to Net income from this adjustment.
|
(3)
|
Represents non-cash
intangible amortization recorded as a result of the acquisition of
our Brazil operations.
|
(4)
|
Represents asset
impairment charges and accelerated depreciation incurred in
connection with our relocation program.
|
(5)
|
Represents asset
impairment charges and related costs associated with the decision
to sell our corporate aircraft.
|
(6)
|
Relates primarily to
costs incurred with the secondary offerings of our common stock in
March 2015 and March 2014, respectively, and other transaction
costs.
|
(7)
|
Primarily represents
the sale of our Roy's business.
|
(8)
|
Relates to the
refinancing of our Senior Secured Credit Facility in March 2015 and
May 2014, respectively.
|
(9)
|
Income tax effect of
adjustments for the thirteen and twenty-six weeks ended June 28,
2015 and June 29, 2014, respectively, are calculated based on
the statutory rate applicable to jurisdictions in which the above
non-GAAP adjustments relate. For the thirteen and twenty-six weeks
ended June 28, 2015, a deferred income tax adjustment has been
recorded for the allowable income tax credits for the employer's
share of FICA taxes expected to be paid. See footnote 2 to this
table.
|
Following is a summary of the financial statement line item
classification of the net income adjustments in the Consolidated
Statements of Operations and Comprehensive Income:
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(dollars in
thousands)
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
Cost of
sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Labor and other
related
|
(2,671)
|
|
|
—
|
|
|
(2,671)
|
|
|
—
|
|
Other restaurant
operating expense
|
20
|
|
|
100
|
|
|
(116)
|
|
|
(1,883)
|
|
Depreciation and
amortization
|
1,226
|
|
|
1,432
|
|
|
2,492
|
|
|
2,795
|
|
General and
administrative
|
286
|
|
|
—
|
|
|
1,888
|
|
|
2,153
|
|
Provision for
impaired assets and restaurant closings
|
436
|
|
|
—
|
|
|
9,301
|
|
|
5,972
|
|
Other expense,
net
|
(121)
|
|
|
—
|
|
|
1,030
|
|
|
—
|
|
Provision for income
taxes
|
1,047
|
|
|
(4,847)
|
|
|
(2,580)
|
|
|
(7,542)
|
|
Loss on
extinguishment and modification of debt
|
2,638
|
|
|
11,092
|
|
|
2,638
|
|
|
11,092
|
|
Net
adjustments
|
$
|
2,861
|
|
|
$
|
7,777
|
|
|
$
|
11,982
|
|
|
$
|
12,587
|
|
TABLE
SEVEN
|
BLOOMIN' BRANDS,
INC.
|
SEGMENT INCOME
FROM OPERATIONS NON-GAAP RECONCILIATION
|
(UNAUDITED)
|
U.S.
Segment
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(dollars in
thousands)
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
|
JUNE 28,
2015
|
|
JUNE 29,
2014
|
Income from
operations
|
$
|
93,265
|
|
|
$
|
81,268
|
|
|
$
|
220,673
|
|
|
$
|
188,169
|
|
Operating income
margin
|
9.5
|
%
|
|
8.4
|
%
|
|
10.8
|
%
|
|
9.5
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Restaurant
impairments and closing costs (1)
|
—
|
|
|
—
|
|
|
1,336
|
|
|
4,929
|
|
Restaurant
relocations and related costs (2)
|
122
|
|
|
—
|
|
|
1,291
|
|
|
—
|
|
Adjusted income from
operations
|
$
|
93,387
|
|
|
$
|
81,268
|
|
|
$
|
223,300
|
|
|
$
|
193,098
|
|
Adjusted operating
income margin
|
9.5
|
%
|
|
8.4
|
%
|
|
10.9
|
%
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Segment
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
Income from
operations
|
$
|
5,727
|
|
|
$
|
8,282
|
|
|
$
|
14,606
|
|
|
$
|
24,507
|
|
Operating income
margin
|
4.9
|
%
|
|
5.8
|
%
|
|
5.7
|
%
|
|
8.4
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Restaurant
impairments and closing costs (3)
|
(63)
|
|
|
—
|
|
|
7,471
|
|
|
—
|
|
Purchased intangibles
amortization (4)
|
1,123
|
|
|
1,532
|
|
|
2,406
|
|
|
2,990
|
|
Adjusted income from
operations
|
$
|
6,787
|
|
|
$
|
9,814
|
|
|
$
|
24,483
|
|
|
$
|
27,497
|
|
Adjusted operating
income margin
|
5.8
|
%
|
|
6.8
|
%
|
|
9.5
|
%
|
|
9.4
|
%
|
_______________________
(1)
|
Represents expenses
incurred for the Domestic Restaurant Closure Initiative.
|
(2)
|
Represents asset
impairment charges and accelerated depreciation incurred in
connection with the Company's relocation program.
|
(3)
|
Represents expenses
incurred for the International Restaurant Closure
Initiative.
|
(4)
|
Represents non-cash
intangible amortization recorded as a result of the acquisition of
our Brazil operations.
|
TABLE
EIGHT
|
BLOOMIN' BRANDS,
INC.
|
COMPARATIVE STORE
INFORMATION
|
(UNAUDITED)
|
|
JUNE
28,
|
|
JUNE
29,
|
|
2015
|
|
2014
|
Number of restaurants
(at end of the period):
|
|
|
|
U.S.
|
|
|
|
Outback
Steakhouse
|
|
|
|
Company-owned
|
649
|
|
|
650
|
|
Franchised
|
105
|
|
|
104
|
|
Total
|
754
|
|
|
754
|
|
Carrabba's Italian
Grill
|
|
|
|
Company-owned
|
244
|
|
|
240
|
|
Franchised
|
2
|
|
|
1
|
|
Total
|
246
|
|
|
241
|
|
Bonefish
Grill
|
|
|
|
Company-owned
|
207
|
|
|
193
|
|
Franchised
|
5
|
|
|
5
|
|
Total
|
212
|
|
|
198
|
|
Fleming's Prime
Steakhouse & Wine Bar
|
|
|
|
Company-owned
|
66
|
|
|
66
|
|
Roy's (1)
|
|
|
|
Company-owned
|
—
|
|
|
20
|
|
International
|
|
|
|
Company-owned
|
|
|
|
Outback Steakhouse -
South Korea
|
76
|
|
|
106
|
|
Outback Steakhouse -
Brazil (2)
|
69
|
|
|
54
|
|
Other
|
12
|
|
|
12
|
|
Franchised
|
57
|
|
|
51
|
|
Total
|
214
|
|
|
223
|
|
System-wide
total
|
1,492
|
|
|
1,502
|
|
_______________________
(1)
|
On January 26, 2015,
we sold our Roy's concept.
|
(2)
|
The restaurant counts
for Brazil are reported as of May 2015 and 2014, respectively, to
correspond with the balance sheet dates of this
subsidiary.
|
Chris Meyer
Group Vice President, IR & Finance
(813) 830-5311
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bloomin-brands-announces-2015-second-quarter-adjusted-diluted-eps-of-028-and-diluted-eps-of-026-300123158.html
SOURCE Bloomin' Brands, Inc.