TAMPA, Fla., July 26, 2017
/PRNewswire/ -- Bloomin' Brands, Inc. (Nasdaq: BLMN) today
reported results for the second quarter 2017 ("Q2 2017") compared
to the second quarter 2016 ("Q2 2016").
Highlights for Q2 2017 include the following:
- Comparable restaurant sales were up 0.3% at Outback
Steakhouse;
- Combined U.S. comparable restaurant sales were down 0.3%;
- Comparable restaurant sales were up 13% for Outback Steakhouse
in Brazil; and
- Opened five new restaurants all of which were in international
markets.
Subsequent to the fiscal first quarter earnings call, we
repurchased $155 million of common
stock, bringing the total year-to-date share repurchases to
$233 million through July 25, 2017.
Diluted EPS and Adjusted Diluted EPS
The following table reconciles Diluted earnings (loss) per share
to Adjusted diluted earnings per share for the periods as indicated
below.
|
Q2
|
|
|
|
2017
|
|
2016
|
|
CHANGE
|
Diluted earnings
(loss) per share
|
$
|
0.35
|
|
|
$
|
(0.08)
|
|
|
$
|
0.43
|
|
Adjustments
|
(0.07)
|
|
|
0.37
|
|
|
(0.44)
|
|
Adjusted diluted
earnings per share
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
___________________
|
See Non-GAAP Measures
later in this release.
|
CEO Comments
"We were pleased with our second quarter performance, and remain
on track to achieve our sales and EPS goals for the year," said
Liz Smith, CEO. "We maintained
positive comp sales at Outback with strengthening traffic trends as
our investments are gaining traction. In addition, comp sales
were up 13% at Outback Brazil as this business continues to perform
at a very high level."
Second Quarter Financial Results
(dollars in
millions)
|
Q2
2017
|
|
Q2
2016
|
|
%
Change
|
Total
revenues
|
$
|
1,033.0
|
|
|
$
|
1,078.6
|
|
|
(4.2)%
|
|
|
|
|
|
|
U.S. GAAP
restaurant-level operating margin
|
15.2
|
%
|
|
15.5
|
%
|
|
(0.3)%
|
Adjusted
restaurant-level operating margin (1)
|
15.2
|
%
|
|
15.5
|
%
|
|
(0.3)%
|
|
|
|
|
|
|
U.S. GAAP operating
income margin
|
4.1
|
%
|
|
1.2
|
%
|
|
2.9%
|
Adjusted operating
income margin (1)
|
4.5
|
%
|
|
5.1
|
%
|
|
(0.6)%
|
___________________
|
(1) See Non-GAAP Measures later in
this release.
|
- The decrease in Total revenues was primarily due to
refranchising internationally and domestically and the net impact
of restaurant closings and new restaurant openings, partially
offset by the effect of foreign currency translation and increases
in franchise revenues.
- The decrease in U.S. GAAP and adjusted restaurant-level
operating margin was primarily due to: (i) higher labor costs, (ii)
operating expense inflation, (iii) service and product investments
at Outback Steakhouse and (iv) higher net rent expense due to the
sale-leaseback of certain properties. These decreases were
partially offset by: (i) increases in average check, (ii) the
impact of certain cost savings initiatives, (iii) lower advertising
expense and (iv) lower insurance costs.
- The increase in U.S. GAAP operating income margin was primarily
due to: (i) lapping $39.6 million of
asset impairment charges in connection with the 2016 sale of our
South Korean business and (ii) increases in franchise revenues.
This increase was partially offset by: (i) a decrease in
restaurant-level operating margin and (ii) the timing of our annual
partner's conference which occurred in Q2 of 2017 and Q1 of
2016.
- Adjusted operating income margin excludes charges associated
with the 2016 sale of our South Korean business and certain other
adjustments. See table five later in this release for more
information.
Second Quarter Comparable Restaurant Sales
THIRTEEN WEEKS
ENDED JUNE 25, 2017
|
|
COMPANY-OWNED
|
Comparable restaurant
sales (stores open 18 months or more):
|
|
|
U.S.
|
|
|
Outback
Steakhouse
|
|
0.3%
|
|
Carrabba's Italian
Grill
|
|
0.4%
|
|
Bonefish
Grill
|
|
(2.6)%
|
|
Fleming's Prime
Steakhouse & Wine Bar
|
|
(1.3)%
|
|
Combined
U.S.
|
|
(0.3)%
|
|
|
|
|
International
|
|
|
Outback Steakhouse -
Brazil
|
|
12.6%
|
|
Dividend Declaration and Share Repurchases
In July 2017, our Board of
Directors declared a quarterly cash dividend of $0.08 per share to be paid on August 23,
2017 to all stockholders of record as of the close of business on
August 9, 2017.
On April 21, 2017, our Board of Directors approved a new
$250 million share repurchase
program. As of July 25, 2017, we
repurchased 7.4 million shares of common stock for a total of
$155 million and there is
$95 million remaining under this
authorization, which expires on October 21,
2018.
Fiscal 2017 Financial Outlook
We are reaffirming all aspects of our full-year financial
guidance as previously communicated in our February 17, 2017 earnings release except for the
following:
|
|
Outlook on Feb.
17
|
|
Current
Outlook
|
U.S. GAAP effective
income tax rate (1)
|
|
25% - 26%
|
|
21% - 22%
|
|
|
|
|
|
Adjusted effective
income tax rate (1)
|
|
25% - 26%
|
|
24% - 25%
|
|
|
|
|
|
Number of new
system-wide restaurants (2)
|
|
40 - 50
|
|
Approximately
30
|
|
___________________
|
(1)
Decrease primarily related to certain favorable discrete tax items
recorded in 2017.
|
(2)
Decrease primarily related to a reduction in International
franchise restaurant expectations.
|
Conference Call
The Company will host a conference call today, July 26th at 9:00 AM
ET. The conference call can be accessed live over the
telephone by dialing (877) 407-9039 or (201) 689-8470 for
international participants. A replay will be available beginning
two hours after the call and can be accessed by dialing (844)
512-2921 or (412) 317-6671 for international callers. The replay
will be available through Wednesday, August
2, 2017. The conference ID for the live call and replay is
13665492. 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.
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.
We believe that our 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 may 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 or will not recur. We believe that the disclosure of
these non-GAAP measures is useful to investors as they form part of
the basis for how our management team and Board of Directors
evaluate our operating performance, allocate resources and
administer employee incentive plans.
These non-GAAP financial measures are not intended to replace
U.S. GAAP financial measures, and they are not necessarily
standardized or comparable to similarly titled measures used by
other companies. We maintain internal guidelines with respect to
the types of adjustments we include in our non-GAAP measures. These
guidelines endeavor to differentiate between types of gains and
expenses that are reflective of our core operations in a period,
and those that may vary from period to period without correlation
to our core performance in that period. However, implementation of
these guidelines necessarily involves the application of judgment,
and the treatment of any items not directly addressed by, or
changes to, our guidelines will be considered by our disclosure
committee. You should refer to the reconciliations of non-GAAP
measures in tables four, five and six included later in this
release for descriptions of the actual adjustments made in the
current period and the corresponding prior period.
As previously announced, based on a review of our non-GAAP
presentations, we determined that, commencing with our results for
the first fiscal quarter of 2017, when presenting non-GAAP
measures, we will no longer adjust for expenses incurred in
connection with our remodel program or intangible amortization
recorded as a result of the acquisition of our Brazil operations. We recast historical
comparable periods to conform to the revised presentation.
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 19
countries, some of which are franchise locations. For more
information, please visit www.bloominbrands.com.
Forward-Looking Statements
Certain statements contained herein, including statements under
the headings "CEO Comments" and "Fiscal 2017 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: consumer reaction to public health and food
safety issues; competition; increases in labor costs; government
actions and policies; increases in unemployment rates and taxes;
local, regional, national and international economic conditions;
consumer confidence and spending patterns; price and availability
of commodities; challenges associated with our expansion,
remodeling and relocation plans; interruption or breach of our
systems or loss of consumer or employee information; political,
social and legal conditions in international markets and their
effects on foreign operations and foreign currency exchange rates;
our ability to preserve the value of and grow our brands; the
seasonality of the Company's business; weather, acts of God and
other disasters; changes in patterns of consumer traffic, consumer
tastes and dietary habits; the effectiveness of our strategic
actions; the cost and availability of credit; interest rate
changes; compliance with debt covenants and the Company's
ability to make debt payments and planned investments; and our
ability to continue to pay dividends and repurchase shares of our
common stock. 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
and subsequent filings 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
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(in thousands,
except per share data)
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
Revenues
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
1,019,957
|
|
|
$
|
1,072,519
|
|
|
$
|
2,155,445
|
|
|
$
|
2,230,571
|
|
Franchise and other
revenues
|
13,025
|
|
|
6,069
|
|
|
21,360
|
|
|
12,205
|
|
Total
revenues
|
1,032,982
|
|
|
1,078,588
|
|
|
2,176,805
|
|
|
2,242,776
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of
sales
|
323,130
|
|
|
346,811
|
|
|
687,878
|
|
|
722,099
|
|
Labor and other
related
|
297,857
|
|
|
309,155
|
|
|
622,255
|
|
|
631,960
|
|
Other restaurant
operating
|
244,124
|
|
|
250,443
|
|
|
492,064
|
|
|
504,014
|
|
Depreciation and
amortization
|
48,063
|
|
|
49,004
|
|
|
94,653
|
|
|
96,655
|
|
General and
administrative
|
77,056
|
|
|
68,566
|
|
|
148,997
|
|
|
143,591
|
|
Provision for
impaired assets and restaurant closings
|
598
|
|
|
41,276
|
|
|
19,674
|
|
|
44,440
|
|
Total costs and
expenses
|
990,828
|
|
|
1,065,255
|
|
|
2,065,521
|
|
|
2,142,759
|
|
Income from
operations
|
42,154
|
|
|
13,333
|
|
|
111,284
|
|
|
100,017
|
|
Loss on defeasance,
extinguishment and modification of debt
|
(260)
|
|
|
—
|
|
|
(260)
|
|
|
(26,580)
|
|
Other income
(expense), net
|
7,281
|
|
|
(1)
|
|
|
7,230
|
|
|
(20)
|
|
Interest expense,
net
|
(9,543)
|
|
|
(10,302)
|
|
|
(18,684)
|
|
|
(23,177)
|
|
Income before
provision for income taxes
|
39,632
|
|
|
3,030
|
|
|
99,570
|
|
|
50,240
|
|
Provision for income
taxes
|
3,303
|
|
|
11,095
|
|
|
18,318
|
|
|
22,422
|
|
Net income
(loss)
|
36,329
|
|
|
(8,065)
|
|
|
81,252
|
|
|
27,818
|
|
Less: net income
attributable to noncontrolling interests
|
699
|
|
|
1,112
|
|
|
1,712
|
|
|
2,520
|
|
Net income (loss)
attributable to Bloomin' Brands
|
$
|
35,630
|
|
|
$
|
(9,177)
|
|
|
$
|
79,540
|
|
|
$
|
25,298
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.36
|
|
|
$
|
(0.08)
|
|
|
$
|
0.79
|
|
|
$
|
0.22
|
|
Diluted
|
$
|
0.35
|
|
|
$
|
(0.08)
|
|
|
$
|
0.76
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
98,852
|
|
|
113,330
|
|
|
100,963
|
|
|
115,630
|
|
Effect of diluted
securities:
|
|
|
|
|
|
|
|
Stock
options
|
3,128
|
|
|
—
|
|
|
3,030
|
|
|
2,719
|
|
Nonvested restricted
stock and restricted stock units
|
433
|
|
|
—
|
|
|
394
|
|
|
208
|
|
Nonvested
performance-based share units
|
8
|
|
|
—
|
|
|
30
|
|
|
3
|
|
Diluted weighted
average common shares outstanding
|
102,421
|
|
|
113,330
|
|
|
104,417
|
|
|
118,560
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
$
|
0.16
|
|
|
$
|
0.14
|
|
TABLE
TWO
|
BLOOMIN' BRANDS,
INC.
|
SEGMENT
RESULTS
|
(UNAUDITED)
|
(dollars in
thousands)
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
U.S.
Segment
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
Revenues
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
907,037
|
|
|
$
|
953,992
|
|
|
$
|
1,934,249
|
|
|
$
|
1,992,741
|
|
Franchise and other
revenues
|
10,332
|
|
|
4,989
|
|
|
15,738
|
|
|
10,019
|
|
Total
revenues
|
$
|
917,369
|
|
|
$
|
958,981
|
|
|
$
|
1,949,987
|
|
|
$
|
2,002,760
|
|
Restaurant-level
operating margin
|
14.1
|
%
|
|
15.5
|
%
|
|
15.8
|
%
|
|
16.5
|
%
|
Income from
operations
|
$
|
75,068
|
|
|
$
|
89,010
|
|
|
$
|
176,014
|
|
|
$
|
206,849
|
|
Operating income
margin
|
8.2
|
%
|
|
9.3
|
%
|
|
9.0
|
%
|
|
10.3
|
%
|
International
Segment
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
112,920
|
|
|
$
|
118,527
|
|
|
$
|
221,196
|
|
|
$
|
237,830
|
|
Franchise and other
revenues
|
2,693
|
|
|
1,080
|
|
|
5,622
|
|
|
2,186
|
|
Total
revenues
|
$
|
115,613
|
|
|
$
|
119,607
|
|
|
$
|
226,818
|
|
|
$
|
240,016
|
|
Restaurant-level
operating margin
|
21.1
|
%
|
|
16.2
|
%
|
|
20.7
|
%
|
|
17.8
|
%
|
Income (loss) from
operations
|
$
|
9,679
|
|
|
$
|
(34,573)
|
|
|
$
|
18,481
|
|
|
$
|
(23,224)
|
|
Operating income
(loss) margin
|
8.4
|
%
|
|
(28.9)
|
%
|
|
8.1
|
%
|
|
(9.7)
|
%
|
Reconciliation of
Segment Income (Loss) from
Operations to Consolidated Income from Operations
|
|
|
|
|
|
|
|
Segment income (loss)
from operations
|
|
|
|
|
|
|
|
U.S.
|
$
|
75,068
|
|
|
$
|
89,010
|
|
|
$
|
176,014
|
|
|
$
|
206,849
|
|
International
|
9,679
|
|
|
(34,573)
|
|
|
18,481
|
|
|
(23,224)
|
|
Total segment income
from operations
|
84,747
|
|
|
54,437
|
|
|
194,495
|
|
|
183,625
|
|
Unallocated corporate
operating expense
|
(42,593)
|
|
|
(41,104)
|
|
|
(83,211)
|
|
|
(83,608)
|
|
Total income from
operations
|
$
|
42,154
|
|
|
$
|
13,333
|
|
|
$
|
111,284
|
|
|
$
|
100,017
|
|
TABLE
THREE
|
BLOOMIN' BRANDS,
INC.
|
SUPPLEMENTAL
BALANCE SHEET INFORMATION
|
(UNAUDITED)
|
(in
thousands)
|
JUNE 25,
2017
|
DECEMBER 25,
2016
|
Cash and cash
equivalents (1)
|
$
|
103,474
|
|
|
$
|
127,176
|
|
Net working capital
(deficit) (2)
|
$
|
(471,077)
|
|
|
$
|
(432,889)
|
|
Total
assets
|
$
|
2,480,921
|
|
|
$
|
2,642,279
|
|
Total debt,
net
|
$
|
1,126,538
|
|
|
$
|
1,089,485
|
|
Total stockholders'
equity
|
$
|
101,228
|
|
|
$
|
195,353
|
|
Common stock
outstanding (3)
|
|
95,008
|
|
|
|
103,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________
|
(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.
|
(3)
|
During the twenty-six
weeks ended June 25, 2017, we repurchased 9.9 million shares of our
outstanding common stock.
|
TABLE
FOUR
|
BLOOMIN' BRANDS,
INC.
|
RESTAURANT-LEVEL
OPERATING MARGIN NON-GAAP RECONCILIATION
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
(UNFAVORABLE)
FAVORABLE
CHANGE IN ADJUSTED
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
Consolidated:
|
U.S.
GAAP
|
|
ADJUSTED
|
|
U.S.
GAAP
|
|
ADJUSTED
(1)
|
|
QUARTER TO
DATE
|
Restaurant
sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
31.7
|
%
|
|
31.7
|
%
|
|
32.3
|
%
|
|
32.3
|
%
|
|
0.6
|
%
|
Labor and other
related
|
29.2
|
%
|
|
29.2
|
%
|
|
28.8
|
%
|
|
28.8
|
%
|
|
(0.4)
|
%
|
Other restaurant
operating
|
23.9
|
%
|
|
23.9
|
%
|
|
23.4
|
%
|
|
23.3
|
%
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
Restaurant-level
operating margin
|
15.2
|
%
|
|
15.2
|
%
|
|
15.5
|
%
|
|
15.5
|
%
|
|
(0.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
Segments:
|
|
|
|
|
|
|
|
|
|
Restaurant-level
operating margin - U.S.
|
14.1
|
%
|
|
14.1
|
%
|
|
15.5
|
%
|
|
15.5
|
%
|
|
(1.4)
|
%
|
Restaurant-level
operating margin - International
|
21.1
|
%
|
|
21.1
|
%
|
|
16.2
|
%
|
|
16.2
|
%
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
TWENTY-SIX WEEKS
ENDED
|
|
(UNFAVORABLE)
FAVORABLE CHANGE IN ADJUSTED
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
Consolidated:
|
U.S.
GAAP
|
|
ADJUSTED
(2)
|
|
U.S.
GAAP
|
|
ADJUSTED
(1)(3)
|
|
YEAR TO
DATE
|
Restaurant
sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
31.9
|
%
|
|
31.9
|
%
|
|
32.4
|
%
|
|
32.4
|
%
|
|
0.5
|
%
|
Labor and other
related
|
28.9
|
%
|
|
28.9
|
%
|
|
28.3
|
%
|
|
28.3
|
%
|
|
(0.6)
|
%
|
Other restaurant
operating
|
22.8
|
%
|
|
23.1
|
%
|
|
22.6
|
%
|
|
22.7
|
%
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
Restaurant-level
operating margin
|
16.4
|
%
|
|
16.1
|
%
|
|
16.7
|
%
|
|
16.6
|
%
|
|
(0.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
Segments:
|
|
|
|
|
|
|
|
|
|
Restaurant-level
operating margin - U.S.
|
15.8
|
%
|
|
15.5
|
%
|
|
16.5
|
%
|
|
16.4
|
%
|
|
(0.9)
|
%
|
Restaurant-level
operating margin - International
|
20.7
|
%
|
|
20.7
|
%
|
|
17.8
|
%
|
|
17.8
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________
|
(1)
|
Includes adjustments
for loss of $0.3 million on the sale of certain properties,
recorded in Other restaurant operating in the U.S
segment.
|
(2)
|
Includes adjustments
for the write-off of $5.3 million of deferred rent liabilities
associated with the 2017 Closure Initiative and our relocation
program, recorded in Other restaurant operating in the U.S
segment.
|
(3)
|
Includes adjustments
for the write-off of $1.9 million of deferred rent liabilities
primarily associated with the Bonefish Restructuring, recorded in
Other restaurant operating in the U.S segment.
|
TABLE
FIVE
|
BLOOMIN' BRANDS,
INC.
|
INCOME FROM
OPERATIONS, NET INCOME (LOSS) AND DILUTED EARNINGS PER SHARE
NON-GAAP RECONCILIATIONS
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(in thousands,
except per share data)
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
Income from
operations
|
$
|
42,154
|
|
|
$
|
13,333
|
|
|
$
|
111,284
|
|
|
$
|
100,017
|
|
Operating income
margin
|
4.1
|
%
|
|
1.2
|
%
|
|
5.1
|
%
|
|
4.5
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Restaurant
relocations and related costs (1)
|
2,251
|
|
|
550
|
|
|
4,358
|
|
|
906
|
|
Transaction-related
expenses (2)
|
1,240
|
|
|
(106)
|
|
|
1,447
|
|
|
466
|
|
Restaurant
impairments and closing costs (3)
|
702
|
|
|
335
|
|
|
16,199
|
|
|
2,120
|
|
Asset impairments and
related costs (4)
|
—
|
|
|
39,677
|
|
|
—
|
|
|
40,023
|
|
Severance
(5)
|
—
|
|
|
737
|
|
|
—
|
|
|
1,872
|
|
Total income from
operations adjustments
|
4,193
|
|
|
41,193
|
|
|
22,004
|
|
|
45,387
|
|
Adjusted income from
operations
|
$
|
46,347
|
|
|
$
|
54,526
|
|
|
$
|
133,288
|
|
|
$
|
145,404
|
|
Adjusted operating
income margin
|
4.5
|
%
|
|
5.1
|
%
|
|
6.1
|
%
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Bloomin' Brands
|
$
|
35,630
|
|
|
$
|
(9,177)
|
|
|
$
|
79,540
|
|
|
$
|
25,298
|
|
Adjustments:
|
|
|
|
|
|
|
|
Income from
operations adjustments
|
4,193
|
|
|
41,193
|
|
|
22,004
|
|
|
45,387
|
|
Gain on disposal of
business (6)
|
(7,284)
|
|
|
—
|
|
|
(7,284)
|
|
|
—
|
|
Loss on defeasance,
extinguishment and modification of debt (7)
|
260
|
|
|
—
|
|
|
260
|
|
|
26,580
|
|
Total adjustments,
before income taxes
|
(2,831)
|
|
|
41,193
|
|
|
14,980
|
|
|
71,967
|
|
Adjustment to
provision for income taxes (8)
|
(4,525)
|
|
|
2,032
|
|
|
(8,944)
|
|
|
(7,044)
|
|
Net
adjustments
|
(7,356)
|
|
|
43,225
|
|
|
6,036
|
|
|
64,923
|
|
Adjusted net
income
|
$
|
28,274
|
|
|
$
|
34,048
|
|
|
$
|
85,576
|
|
|
$
|
90,221
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.35
|
|
|
$
|
(0.08)
|
|
|
$
|
0.76
|
|
|
$
|
0.21
|
|
Adjusted diluted
earnings per share
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
0.82
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
98,852
|
|
|
113,330
|
|
|
100,963
|
|
|
115,630
|
|
Diluted weighted
average common shares outstanding (9)
|
102,421
|
|
|
116,343
|
|
|
104,417
|
|
|
118,560
|
|
_________________
|
(1)
|
Represents asset
impairment charges and accelerated depreciation incurred in
connection with our relocation program.
|
(2)
|
Relates primarily to
the following: (i) professional fees related to certain income tax
items in which the associated tax benefit is adjusted in
Adjustments to provision for income taxes, as described in footnote
8 to this table and (ii) costs incurred in connection with our
sale-leaseback initiative.
|
(3)
|
Represents expenses
incurred for approved closure and restructuring
initiatives.
|
(4)
|
Represents asset
impairment charges and related costs associated with the decision
to sell Outback Steakhouse South Korea in 2016.
|
(5)
|
Relates to severance
expense incurred primarily as a result of the relocation of
our Fleming's operations center to the corporate home office in
2016.
|
(6)
|
Primarily relates to
the sale of 54 U.S. Company-owned restaurants to existing
franchisees.
|
(7)
|
Relates to
modification of our Credit Agreement in 2017 and the defeasance of
the 2012 CMBS loan in 2016.
|
(8)
|
Represents income tax
effect of the adjustments for the thirteen and twenty-six weeks
ended June 25, 2017 and June 26, 2016. Adjustments include the
impact of excluding $4.6 million of discrete income tax items for
the thirteen and twenty-six weeks ended June 25, 2017.
|
(9)
|
Due to the GAAP net
loss in the thirteen weeks ended June 26, 2016, the effect of
dilutive securities was excluded from the calculation of GAAP
diluted loss per share for that period. For adjusted diluted
earnings per share, the calculation includes dilutive shares of
3,013 for the thirteen weeks ended June 26, 2016.
|
Following is a summary of the financial statement line item
classification of the net income (loss) adjustments:
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(dollars in
thousands)
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
Other restaurant
operating
|
$
|
(148)
|
|
|
$
|
151
|
|
|
$
|
(5,287)
|
|
|
$
|
(1,862)
|
|
Depreciation and
amortization
|
1,739
|
|
|
811
|
|
|
3,332
|
|
|
1,255
|
|
General and
administrative
|
2,005
|
|
|
259
|
|
|
4,394
|
|
|
2,911
|
|
Provision for
impaired assets and restaurant closings
|
597
|
|
|
39,972
|
|
|
19,565
|
|
|
43,083
|
|
Loss on defeasance,
extinguishment and modification of debt
|
260
|
|
|
—
|
|
|
260
|
|
|
26,580
|
|
Other income
(expense), net
|
(7,284)
|
|
|
—
|
|
|
(7,284)
|
|
|
—
|
|
Provision for income
taxes
|
(4,525)
|
|
|
2,032
|
|
|
(8,944)
|
|
|
(7,044)
|
|
Net
adjustments
|
$
|
(7,356)
|
|
|
$
|
43,225
|
|
|
$
|
6,036
|
|
|
$
|
64,923
|
|
TABLE
SIX
|
BLOOMIN' BRANDS,
INC.
|
SEGMENT INCOME
(LOSS) FROM OPERATIONS NON-GAAP RECONCILIATION
|
(UNAUDITED)
|
U.S.
Segment
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
(dollars in
thousands)
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
Income from
operations
|
$
|
75,068
|
|
|
$
|
89,010
|
|
|
$
|
176,014
|
|
|
$
|
206,849
|
|
Operating income
margin
|
8.2
|
%
|
|
9.3
|
%
|
|
9.0
|
%
|
|
10.3
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Restaurant
relocations and related costs (1)
|
2,251
|
|
|
550
|
|
|
4,358
|
|
|
906
|
|
Restaurant
impairments and closing costs (2)
|
702
|
|
|
—
|
|
|
16,199
|
|
|
2,224
|
|
Transaction-related
expenses (3)
|
140
|
|
|
(189)
|
|
|
347
|
|
|
145
|
|
Severance
(4)
|
—
|
|
|
737
|
|
|
—
|
|
|
1,276
|
|
Adjusted income from
operations
|
$
|
78,161
|
|
|
$
|
90,108
|
|
|
$
|
196,918
|
|
|
$
|
211,400
|
|
Adjusted operating
income margin
|
8.5
|
%
|
|
9.4
|
%
|
|
10.1
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
International
Segment
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
$
|
9,679
|
|
|
$
|
(34,573)
|
|
|
$
|
18,481
|
|
|
$
|
(23,224)
|
|
Operating income
margin
|
8.4
|
%
|
|
(28.9)
|
%
|
|
8.1
|
%
|
|
(9.7)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Asset impairments and
related costs (5)
|
—
|
|
|
39,677
|
|
|
—
|
|
|
40,023
|
|
Restaurant
impairments and closing costs (2)
|
—
|
|
|
335
|
|
|
—
|
|
|
(103)
|
|
Adjusted income from
operations
|
$
|
9,679
|
|
|
$
|
5,439
|
|
|
$
|
18,481
|
|
|
$
|
16,696
|
|
Adjusted operating
income margin
|
8.4
|
%
|
|
4.5
|
%
|
|
8.1
|
%
|
|
7.0
|
%
|
_________________
|
(1)
|
Represents asset
impairment charges and accelerated depreciation incurred in
connection with our relocation program.
|
(2)
|
Represents expenses
incurred for approved closure and restructuring
initiatives.
|
(3)
|
Represents costs
incurred in connection with our sale-leaseback
initiative.
|
(4)
|
Relates to severance
expense incurred primarily as a result of the relocation of
our Fleming's operations center to the corporate home office in
2016.
|
(5)
|
Represents asset
impairment charges and related costs associated with the decision
to sell Outback Steakhouse South Korea in 2016.
|
TABLE
SEVEN
|
BLOOMIN' BRANDS,
INC.
|
COMPARATIVE
RESTAURANT INFORMATION
|
(UNAUDITED)
|
Number of
restaurants (at end of the period):
|
MARCH 26,
2017
|
|
OPENINGS
|
|
CLOSURES
|
|
OTHER
|
|
JUNE 25,
2017
|
U.S.
|
|
|
|
|
|
|
|
|
|
Outback
Steakhouse
|
|
|
|
|
|
|
|
|
|
Company-owned
(1)
|
637
|
|
|
—
|
|
|
—
|
|
|
(53)
|
|
|
584
|
|
Franchised
(1)
|
105
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
158
|
|
Total
|
742
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
742
|
|
Carrabba's Italian
Grill
|
|
|
|
|
|
|
|
|
|
Company-owned
(1)
|
228
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
227
|
|
Franchised
(1)
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
Total
|
230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230
|
|
Bonefish
Grill
|
|
|
|
|
|
|
|
|
|
Company-owned
|
196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196
|
|
Franchised
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
Total
|
203
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203
|
|
Fleming's Prime
Steakhouse & Wine Bar
|
|
|
|
|
|
|
|
|
|
Company-owned
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
International
|
|
|
|
|
|
|
|
|
|
Company-owned
|
|
|
|
|
|
|
|
|
|
Outback
Steakhouse—Brazil (2)
|
83
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
85
|
|
Other
|
31
|
|
|
3
|
|
|
(1)
|
|
|
—
|
|
|
33
|
|
Franchised
|
|
|
|
|
|
|
|
|
|
Outback Steakhouse -
South Korea
|
75
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
74
|
|
Other
|
55
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
54
|
|
Total
|
244
|
|
|
5
|
|
|
(3)
|
|
|
—
|
|
|
246
|
|
System-wide
total
|
1,486
|
|
|
5
|
|
|
(3)
|
|
|
—
|
|
|
1,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1)
|
In April 2017, we
sold 54 restaurants which are now operated as franchises under
agreements with the buyers.
|
(2)
|
The restaurant counts
for Brazil are reported as of February 28, 2017 and May 31, 2017 to
correspond with the balance sheet dates of this
subsidiary.
|
TABLE
EIGHT
|
BLOOMIN' BRANDS,
INC.
|
COMPARABLE
RESTAURANT SALES INFORMATION
|
(UNAUDITED)
|
|
THIRTEEN WEEKS
ENDED
|
|
TWENTY-SIX WEEKS
ENDED
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
|
JUNE 25,
2017
|
|
JUNE 26,
2016
|
Year over year
percentage change:
|
|
|
|
|
|
|
|
Comparable restaurant
sales (stores open 18 months or more) (1):
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
|
Outback
Steakhouse
|
0.3
|
%
|
|
(2.5)
|
%
|
|
0.9
|
%
|
|
(1.9)
|
%
|
Carrabba's Italian
Grill
|
0.4
|
%
|
|
(4.8)
|
%
|
|
(1.8)
|
%
|
|
(3.3)
|
%
|
Bonefish
Grill
|
(2.6)
|
%
|
|
0.9
|
%
|
|
(1.6)
|
%
|
|
(1.0)
|
%
|
Fleming's Prime
Steakhouse & Wine Bar
|
(1.3)
|
%
|
|
(0.8)
|
%
|
|
(2.1)
|
%
|
|
0.3
|
%
|
Combined
U.S.
|
(0.3)
|
%
|
|
(2.3)
|
%
|
|
(0.3)
|
%
|
|
(1.9)
|
%
|
International
|
|
|
|
|
|
|
|
Outback Steakhouse -
Brazil (2)
|
12.6
|
%
|
|
3.9
|
%
|
|
8.2
|
%
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
Traffic:
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
|
Outback
Steakhouse
|
(0.8)
|
%
|
|
(5.9)
|
%
|
|
(1.5)
|
%
|
|
(4.4)
|
%
|
Carrabba's Italian
Grill
|
(2.0)
|
%
|
|
(4.8)
|
%
|
|
(4.7)
|
%
|
|
(1.6)
|
%
|
Bonefish
Grill
|
(3.1)
|
%
|
|
(2.8)
|
%
|
|
(2.6)
|
%
|
|
(4.0)
|
%
|
Fleming's Prime
Steakhouse & Wine Bar
|
(5.5)
|
%
|
|
(3.7)
|
%
|
|
(6.5)
|
%
|
|
(1.2)
|
%
|
Combined
U.S.
|
(1.5)
|
%
|
|
(5.2)
|
%
|
|
(2.5)
|
%
|
|
(3.7)
|
%
|
International
|
|
|
|
|
|
|
|
Outback Steakhouse -
Brazil
|
3.2
|
%
|
|
(1.5)
|
%
|
|
0.7
|
%
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
Average check per
person increases (decreases) (3):
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
|
Outback
Steakhouse
|
1.1
|
%
|
|
3.4
|
%
|
|
2.4
|
%
|
|
2.5
|
%
|
Carrabba's Italian
Grill
|
2.4
|
%
|
|
—
|
%
|
|
2.9
|
%
|
|
(1.7)
|
%
|
Bonefish
Grill
|
0.5
|
%
|
|
3.7
|
%
|
|
1.0
|
%
|
|
3.0
|
%
|
Fleming's Prime
Steakhouse & Wine Bar
|
4.2
|
%
|
|
2.9
|
%
|
|
4.4
|
%
|
|
1.5
|
%
|
Combined
U.S.
|
1.2
|
%
|
|
2.9
|
%
|
|
2.2
|
%
|
|
1.8
|
%
|
International
|
|
|
|
|
|
|
|
Outback Steakhouse -
Brazil
|
8.2
|
%
|
|
6.3
|
%
|
|
7.3
|
%
|
|
6.7
|
%
|
____________________
|
(1)
|
Comparable restaurant
sales exclude the effect of fluctuations in foreign currency rates.
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.
|
(2)
|
Includes trading day
impact from calendar period reporting of 1.2% and (0.9)% for the
thirteen weeks ended June 25, 2017 and June 26, 2016, respectively
and 0.2% and 0.1% for the twenty-six weeks ended June 25, 2017 and
June 26, 2016, respectively.
|
(3)
|
Average check per
person increases (decreases) include the impact of menu pricing
changes, product mix and discounts.
|
Mark Graff
Vice President, IR & Finance
(813) 830-5311
View original
content:http://www.prnewswire.com/news-releases/bloomin-brands-announces-2017-q2-diluted-eps-of-035-and-adjusted-diluted-eps-of-028-reaffirms-full-year-2017-adjusted-diluted-eps-and-us-comparable-sales-and-repurchases-233-million-of-common-stock-year-to-date-300494148.html
SOURCE Bloomin' Brands, Inc.