Carrols Restaurant Group, Inc. (“Carrols” or the “Company”)
(Nasdaq: TAST) today reported its financial results for the first
quarter ended April 4, 2021.
Highlights for the First Quarter of 2021
versus the First Quarter of 2020 Include:
- Total restaurant
sales increased 10.9% to $390.0 million compared to $351.5 million
in the first quarter of 2020;
- Comparable
restaurant sales for the Company's Burger King® restaurants
increased 14.7%;
- Comparable
restaurant sales for the Company’s Popeyes® restaurants increased
0.5%;
-
Adjusted EBITDA(1) increased to $19.9 million from $4.0 million in
the prior year quarter;
-
Adjusted Restaurant-Level EBITDA(1) increased to $39.5 million from
$22.8 million in the prior year quarter;
-
Net Loss was $(7.2) million, or $(0.14) per diluted share, compared
to Net Loss of $(22.2) million, or $(0.44) per diluted share, in
the prior year quarter;
-
Adjusted Net Loss(1) was $(6.5) million, or $(0.13) per diluted
share, compared to Adjusted Net Loss of $(19.3) million, or $(0.38)
per diluted share, in the prior year quarter;
-
Free Cash Flow(2) improved $22.2 million to a use of $(3.6) million
compared to a use of $(25.8) million in the prior year quarter;
and
- Adjusted Leverage
Ratio (as defined under our senior credit facility) improved to
3.4x compared to 5.0x a year ago.
|
(1)Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted
Net 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. Refer to
the definition and reconciliation of this measure in the tables at
the end of this release. |
Management Commentary
Daniel T. Accordino, Chairman and Chief
Executive Officer of Carrols, commented, “Our first quarter sales
growth was extremely strong. Comparable restaurant sales at our
Burger King restaurants increased 14.7% during the first quarter of
2021, significantly outperforming the Burger King brand in the US
overall. In fact, we have now outperformed the Burger King system
for 19 of the last 21 quarters. We attribute some of our sales
traction to recent government stimulus but are also encouraged by
the significant increases in our breakfast, evening, and late-night
daypart trends as we lapped the initial COVID-related declines from
last year. As vaccinations are further rolled out and conditions
continue to normalize, the resumption of pre-pandemic behaviors and
activities should create a strong business tailwind which we expect
to be enhanced by the launch of Burger King’s new loyalty program
and what we believe is a best-in-class chicken sandwich offering
that Burger King is rolling out with the support of national
advertising in the near future.”
Accordino continued, “From a profitability
standpoint, our Adjusted EBITDA increased nearly five-fold to $19.9
million compared to the same period last year as we benefitted from
an increase in sales, the introduction of delivery service sales at
a majority of our restaurants and cost-saving initiatives we
implemented last year that have continued to reduce
restaurant-level expenses.”
Accordino added, “If we compare March and April
of 2021 to the same months in 2019, our comparable restaurant sales
increased just over 10% in each month. Looking at April trends more
closely, we are experiencing a shift in the composition of activity
as we lap the impact of COVID-19 that began in March 2020. The
combination of higher average checks offsetting reduced traffic
kept our sales resilient from mid-2020 until mid-March 2021. In
April, however, traffic started to return to pre-pandemic numbers
and average checks remained about even with last year’s elevated
levels as the more lucrative buying patterns established during the
pandemic remained in place and guest visits during our most
impacted dayparts continued to normalize.”
Accordino concluded, “Generating meaningful Free
Cash Flow remains a key objective for 2021 and we will look to
allocate that cash in a thoughtful way that we believe will be
beneficial to our shareholders. We are still projecting net capital
expenditures this year of approximately $60 million, but we are
closely monitoring input costs for construction projects and may
adjust our plans accordingly. Over the past twelve months we have
significantly increased our liquidity to over $200 million and
reduced our leverage by more than one and a half turns to 3.4
times. While building and acquiring restaurants in both brands
remains a strategic objective, if compelling returns are not
available, we will instead continue to build free cash flow,
further de-lever our balance sheet, and return cash to
shareholders.”
First Quarter 2021 Financial
Results
Total restaurant revenue increased 10.9% to
$390.0 million in the first quarter of 2021, compared to $351.5
million in the first quarter of 2020. Comparable restaurant sales
for the Company’s Burger King restaurants increased 14.7% compared
to a 5.7% decrease in the prior year quarter. Our Popeyes
restaurants, which represented 5.5% of our total restaurant sales
in the first quarter, delivered a more modest 0.5% increase in
comparable restaurant sales due to the impact of severe weather on
our February results, compared to a 3.2% increase in the first
quarter of 2020.
Adjusted Restaurant-Level EBITDA(1) increased to
$39.5 million in the first quarter of 2021 from $22.8 million in
the prior year period. Adjusted Restaurant-Level EBITDA margin was
10.1% of restaurant sales and increased 360 basis points from the
first quarter of 2020, reflecting lower cost of sales, reduced wage
and related expenses, and other restaurant operating expense
savings. In particular, the Company demonstrated its ability to
continue rationalizing ongoing expenses through optimized
restaurant labor scheduling, despite challenges to labor
availability, and managing other restaurant-related operating
expenses. The availability of labor remains a challenge for our
industry, and while we believe it has not impacted our sales, it
has necessitated that we remain flexible as it relates to operating
hours and staffing levels.
General and administrative expenses increased to
$21.4 million in the first quarter of 2021 from $20.8 million in
the prior year period. The first quarter of 2021 includes $2.4
million more in incentive compensation accruals due to improved
operational performance. The first quarter of 2021 total also
reflects the positive impact of corporate cost efficiency
initiatives implemented in the first half of 2020, such as
streamlining the Company’s regional management structure and
re-engineering the employee training process, which continued to
benefit the Company in 2021.
Adjusted EBITDA(1) increased to $19.9 million in
the first quarter of 2021 from $4.0 million in the first quarter of
2020. Adjusted EBITDA margin was 5.1% of total restaurant sales and
increased 400 basis points from the first quarter of 2020 due to
the factors discussed above.
Loss from operations decreased to $(3.1) million
in the first quarter of 2021 compared to loss from operations of
$(22.0) million in the prior year quarter.
Interest expense decreased to $6.7 million in
the first quarter of 2021 from $7.1 million in the first quarter of
2020.
Net Loss was $(7.2) million in the first quarter
of 2021, or $(0.14) per diluted share, compared to a Net Loss of
$(22.2) million, or $(0.44) per diluted share, in the prior year
quarter. Net Loss in the first quarter of 2021 and 2020 included
$0.4 million and $2.9 million of pre-tax impairment and other lease
charges, respectively. Adjusted Net Loss(1) was ($6.5) million, or
$(0.13) per diluted share, compared to an Adjusted Net Loss of
$(19.3) million, or $(0.38) per diluted share, in the prior year
quarter.
Stock Repurchase Update
During the first quarter of 2021, the Company
did not repurchase any shares of its common stock. The Company
currently has $11 million remaining for repurchases under its stock
repurchase program.
Balance Sheet Update
The Company ended the first quarter of 2021 with
cash and cash equivalents of $59.9 million, and long-term debt
(including current portion) and finance lease liabilities of $493.3
million. As of the end of the first quarter of 2021, the Company
did not have any outstanding revolving credit borrowings under its
revolving credit facility and had $9.0 million of letters of credit
issued under such facility. The Company’s Adjusted Leverage Ratio
(as defined under our senior credit facility) improved to 3.4 times
at the end of the first quarter of 2021 compared to 5.0 times a
year ago.
In April 2021, the Company upsized its revolving credit facility
to $175.0 million, increasing liquidity by $29 million, and
extended its maturity to 2026.
Conference Call Today
Daniel T. Accordino, the Company’s Chairman and
Chief Executive Officer, and Anthony E. Hull, the Company’s Chief
Financial Officer, will host a conference call to discuss first
quarter 2021 financial results and provide a business update today
at 8:30 AM ET.
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 13718525. The replay will be available until
Thursday, May 20, 2021. Investors and interested parties may listen
to a webcast of this conference call by visiting www.carrols.com
under the tab “Investor Relations”.
About the Company
Carrols is one of the largest restaurant
franchisees in North America. It is the largest BURGER KING®
franchisee in the United States, currently operating 1,010 BURGER
KING® restaurants in 23 states as well as 65 POPEYES® restaurants
in seven states. Carrols has operated BURGER KING® restaurants
since 1976 and POPEYES® restaurants since 2019. For more
information, please visit the Company's website at
www.carrols.com.
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 without limitation the impact of COVID-19
on Carrols’ business, as included in Carrols' filings with the
Securities and Exchange Commission.
Carrols Restaurant Group,
Inc.Consolidated Statements of
Operations(In thousands, except share and per share
amounts)
|
(unaudited) |
|
Three Months Ended (a) |
|
April 4, 2021 |
|
March 29, 2020 |
Restaurant sales |
389,993 |
|
|
351,518 |
|
Costs and expenses: |
|
|
|
Cost of sales |
113,790 |
|
|
102,927 |
|
Restaurant wages and related expenses |
129,646 |
|
|
124,575 |
|
Restaurant rent expense |
30,314 |
|
|
29,454 |
|
Other restaurant operating expenses |
61,419 |
|
|
57,978 |
|
Advertising expense |
15,369 |
|
|
13,876 |
|
General and administrative expenses (b) (c) |
21,369 |
|
|
20,787 |
|
Depreciation and amortization |
20,609 |
|
|
21,031 |
|
Impairment and other lease charges |
353 |
|
|
2,881 |
|
Other expense, net (d) |
227 |
|
|
56 |
|
Total costs and expenses |
393,096 |
|
|
373,565 |
|
Loss from operations |
(3,103 |
) |
|
(22,047 |
) |
Interest expense |
6,726 |
|
|
7,140 |
|
Loss before income taxes |
(9,829 |
) |
|
(29,187 |
) |
Benefit from income taxes |
(2,661 |
) |
|
(6,978 |
) |
Net loss |
$ |
(7,168 |
) |
|
$ |
(22,209 |
) |
|
|
|
|
Basic and diluted net loss per
share (e)(f) |
$ |
(0.14 |
) |
|
$ |
(0.44 |
) |
Basic and diluted weighted
average common shares outstanding |
49,824 |
|
|
50,821 |
|
(a) |
The Company uses a 52 or 53 week fiscal year that ends on the
Sunday closest to December 31. The three months ended April 4,
2021 and March 29, 2020 each included thirteen weeks. |
(b) |
General and administrative expenses include acquisition and
integration costs of $0.1 million for the three months ended
March 29, 2020. |
(c) |
General and administrative expenses include stock-based
compensation expense of $1.5 million and $1.1 million for the three
months ended April 4, 2021 and March 29, 2020,
respectively. |
(d) |
Other expense, net, for the three months ended April 4, 2021,
included a loss on disposal of assets of $0.2 million. Other
expense, net, for the three months ended March 29, 2020 included a
loss on sale-leaseback transactions of $0.2 million, a loss on
disposal of assets of $0.1 million and a gain on insurance
recoveries from property damage at our restaurants of $0.3
million. |
(e) |
Basic net loss per share was computed without attributing any loss
to preferred stock and non-vested restricted shares as losses are
not allocated to participating securities under the two-class
method. |
(f) |
Diluted net 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. |
Carrols Restaurant Group,
Inc.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) |
|
Three Months Ended |
|
April 4, 2021 |
|
March 29, 2020 |
Revenue: |
|
|
|
Burger King restaurant sales |
$ |
368,488 |
|
|
|
$ |
329,637 |
|
|
Popeyes restaurant sales |
21,505 |
|
|
|
21,881 |
|
|
Total revenue |
$ |
389,993 |
|
|
|
$ |
351,518 |
|
|
Change in Comparable Burger
King Restaurant Sales (a) |
14.7 |
|
% |
|
(5.7 |
) |
% |
Change in Comparable Popeyes
Restaurant Sales (a) |
0.5 |
|
% |
|
|
|
|
|
|
Average Weekly Sales per
Burger King Restaurant (b) |
$ |
28,094 |
|
|
|
$ |
24,614 |
|
|
Average Weekly Sales per
Popeyes Restaurant (b) |
$ |
25,458 |
|
|
|
$ |
25,978 |
|
|
|
|
|
|
Adjusted Restaurant-Level
EBITDA (c) |
$ |
39,484 |
|
|
|
$ |
22,797 |
|
|
Adjusted Restaurant-Level
EBITDA margin (c) |
10.1 |
|
% |
|
6.5 |
|
% |
|
|
|
|
Adjusted EBITDA (c) |
$ |
19,866 |
|
|
|
$ |
3,972 |
|
|
Adjusted EBITDA margin
(c) |
5.1 |
|
% |
|
1.1 |
|
% |
|
|
|
|
Adjusted Net Loss (c) |
$ |
(6,500 |
) |
|
|
$ |
(19,317 |
) |
|
Adjusted Diluted Net Loss per
share (c) |
$ |
(0.13 |
) |
|
|
$ |
(0.38 |
) |
|
|
|
|
|
Number of Burger King
restaurants: |
|
|
|
Restaurants at beginning of period |
1,009 |
|
|
|
1,036 |
|
|
New restaurants (including offsets) |
2 |
|
|
|
3 |
|
|
Restaurants closed (including offsets) |
(1 |
) |
|
|
(11 |
) |
|
Restaurants at end of period |
1,010 |
|
|
|
1,028 |
|
|
Average Number of operating Burger King restaurants |
1,009.0 |
|
|
|
1,030.2 |
|
|
|
|
|
|
Number of Popeyes
restaurants: |
|
|
|
Restaurants at beginning and end of period |
65 |
|
|
|
65 |
|
|
Average Number of operating Popeyes restaurants |
65.0 |
|
|
|
64.8 |
|
|
(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 restaurant sales
after they have been open for 15 months. The calculation of changes
in comparable restaurant sales is based on a 52-week look back to
the comparable 13-week period. |
(b) |
Average weekly sales per restaurant are derived by dividing
restaurant sales for the comparable 13-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,
Adjusted Net Loss and Adjusted Diluted Net Loss per share 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 our reconciliation
of net loss to EBITDA, Adjusted EBITDA and Adjusted Net Loss, and
to our reconciliation of 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 loss per
share is calculated based on Adjusted Net Loss and reflects the
dilutive impact of shares, where applicable. |
Carrols Restaurant Group,
Inc.Reconciliation of Non-GAAP
Measures(In thousands, except share and per share
amounts)
|
(unaudited) |
|
Three Months Ended (a) |
|
April 4, 2021 |
|
March 29, 2020 |
Reconciliation of
EBITDA and Adjusted EBITDA: (b) |
|
|
|
Net loss |
$ |
(7,168 |
) |
|
$ |
(22,209 |
) |
Benefit for income taxes |
(2,661 |
) |
|
(6,978 |
) |
Interest expense |
6,726 |
|
|
7,140 |
|
Depreciation and amortization |
20,609 |
|
|
21,031 |
|
EBITDA |
17,506 |
|
|
(1,016 |
) |
Impairment and other lease charges |
353 |
|
|
2,881 |
|
Acquisition and integration costs (c) |
— |
|
|
81 |
|
Abandoned development costs (d) |
— |
|
|
688 |
|
Pre-opening costs (e) |
29 |
|
|
89 |
|
Litigation and other professional expenses (f) |
282 |
|
|
61 |
|
Other expense, net (g) |
227 |
|
|
56 |
|
Stock-based compensation expense |
1,469 |
|
|
1,132 |
|
Adjusted
EBITDA |
$ |
19,866 |
|
|
$ |
3,972 |
|
|
|
|
|
Reconciliation of
Adjusted Restaurant-Level EBITDA: (b) |
|
|
|
Loss from operations |
$ |
(3,103 |
) |
|
$ |
(22,047 |
) |
Add: |
|
|
|
General and administrative expenses |
21,369 |
|
|
20,787 |
|
Pre-opening costs (e) |
29 |
|
|
89 |
|
Depreciation and amortization |
20,609 |
|
|
21,031 |
|
Impairment and other lease charges |
353 |
|
|
2,881 |
|
Other expense, net (g) |
227 |
|
|
56 |
|
Adjusted
Restaurant-Level EBITDA |
$ |
39,484 |
|
|
$ |
22,797 |
|
|
|
|
|
Reconciliation of
Adjusted Net Loss: (b) |
|
|
|
Net loss |
$ |
(7,168 |
) |
|
$ |
(22,209 |
) |
Add: |
|
|
|
Impairment and other lease charges |
353 |
|
|
2,881 |
|
Acquisition and integration costs (c) |
— |
|
|
81 |
|
Abandoned development costs (d) |
— |
|
|
688 |
|
Pre-opening costs (e) |
29 |
|
|
89 |
|
Litigation and other professional expenses (f) |
282 |
|
|
61 |
|
Other expense, net (g) |
227 |
|
|
56 |
|
Income tax effect on above adjustments (h) |
(223 |
) |
|
(964 |
) |
Adjusted Net
Loss |
$ |
(6,500 |
) |
|
$ |
(19,317 |
) |
Adjusted diluted net loss per
share (i) |
$ |
(0.13 |
) |
|
$ |
(0.38 |
) |
Adjusted diluted weighted
average common shares outstanding |
49,824 |
|
|
50,821 |
|
(a) |
The Company uses a 52 or 53 week fiscal year that ends the Sunday
closest to December 31. The three months ended April 4, 2021
and March 29, 2020 both included thirteen weeks. |
(b) |
Within our press release, we make reference to EBITDA, Adjusted
EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Loss
which are non-GAAP financial measures. EBITDA represents net 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, abandoned
development costs, restaurant pre-opening costs, non-recurring
litigation and other professional expenses and other income and
expense. Adjusted Restaurant-Level EBITDA represents 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 income and expense. Adjusted Net Loss represents net 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 and
other professional expenses and other income and expense.We are
presenting Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and
Adjusted Net Loss because we believe that they provide a more
meaningful comparison than EBITDA and net 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 restaurant integration
costs, restaurant pre-opening costs, other income and expense, and
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. Although these costs
are not directly related to restaurant-level operations, these
expenses are necessary for the profitability of our restaurants.
Management believes that Adjusted EBITDA, Adjusted Restaurant-Level
EBITDA and Adjusted Net 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 Loss are not
measures of financial performance or liquidity under GAAP and,
accordingly, should not be considered as alternatives to net 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 loss and EBITDA, Adjusted EBITDA and Adjusted Net Loss and
between loss from operations and Adjusted Restaurant-Level
EBITDA. |
(c) |
Acquisition and integration costs
for the three months ended March 29, 2020 mostly include legal
and professional fees incurred in connection with the acquisition
of 165 Burger King and 55 Popeyes restaurants from Cambridge
Franchise Holdings, LLC in 2019 which were included in general and
administrative expense. |
(d) |
Abandoned development costs for
the three months ended March 29, 2020 represents the write-off
of capitalized costs due to the abandoned development in 2020 of
previously planned new restaurant locations. |
(e) |
Pre-opening costs for the three
months ended April 4, 2021 and March 29, 2020 include
training, labor and occupancy costs incurred during the
construction of new restaurants. |
(f) |
Litigation and other professional
expenses for the three months ended April 4, 2021 and
March 29, 2020 include costs pertaining to an ongoing lawsuit
with one of the Company's former vendors, as well as other
non-recurring professional service expenses. |
(g) |
Other expense, net, for the three months ended April 4, 2021,
included a loss on disposal of assets of $0.2 million. Other
expense, net, for the three months ended March 29, 2020 included a
loss on sale-leaseback transactions of $0.2 million, a loss on
disposal of assets of $0.1 million and a gain on insurance
recoveries from property damage at our restaurants of $0.3
million. |
(h) |
The income tax effect related to
the adjustments to Adjusted Net Loss during the periods presented
was calculated using an incremental income tax rate of 25% for the
three months ended April 4, 2021 and March 29, 2020. |
(i) |
Adjusted diluted net loss per
share is calculated based on Adjusted Net Loss and the dilutive
weighted average common shares outstanding for the respective
periods. |
|
(unaudited) |
|
Three Months Ended (a) |
|
April 4, 2021 |
|
March 29, 2020 |
Reconciliation of Free
Cash Flow: (b) |
|
|
|
Net cash provided by (used in) operating activities |
$ |
7,036 |
|
|
$ |
(3,790 |
) |
Net cash used for investing
activities |
(10,627 |
) |
|
(21,968 |
) |
Add: cash paid for
acquisitions |
— |
|
|
— |
|
Total Free Cash
Flow |
$ |
(3,591 |
) |
|
$ |
(25,758 |
) |
|
At 4/4/2021 |
|
At 1/3/2021 |
|
At 3/29/2020 |
Long-term debt and finance lease liabilities (c) |
$ |
493,315 |
|
|
$ |
494,158 |
|
|
$ |
535,521 |
|
Cash and cash equivalents |
59,929 |
|
|
64,964 |
|
|
41,272 |
|
Net Debt (d) |
433,386 |
|
|
429,194 |
|
|
494,249 |
|
Adjusted Leverage Ratio
(e) |
|
3.40 |
x |
|
|
3.82 |
x |
|
|
5.00 |
x |
(a) |
The Company uses a 52 or 53 week fiscal year that ends the Sunday
closest to December 31. The three months ended April 4, 2021
and March 29, 2020 both included thirteen weeks. |
(b) |
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 statements 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 April 4, 2021 and March 29, 2020 is derived
from the Company's consolidated statements of cash flows for the
respective three month periods to be presented in the Company’s
Interim Condensed Consolidated Financial Statements in its Form
10-Q for the period ended April 4, 2021. |
(c) |
Long-term debt and finance lease liabilities (including current
portion and excluding deferred financing costs and original issue
discount) at April 4, 2021 included $418,312 of Term Loan B
borrowings under our senior credit facility, $73,688 of Term Loan
B-1 borrowings under our senior credit facility and $1,315 of
finance lease liabilities. Long-term debt and finance lease
liabilities (including current portion and excluding deferred
financing costs and original issue discount) at January 3, 2021
included $419,375 of Term Loan B under our senior credit facility,
$73,875 of Term Loan B-1 borrowings under our senior credit
facility and $908 of finance lease liabilities. Long-term debt and
finance lease liabilities (including current portion and excluding
deferred financing costs and original issue discount) at March 29,
2020 included $421,813 of the Company's Term Loan B under our
senior credit facility, $111,750 of outstanding revolving
borrowings under the Company's senior credit facility, and $1,958
of finance lease liabilities. |
(d) |
Net Debt represents total funded net debt calculated in accordance
with our senior credit facility as long-term debt and finance lease
liabilities less cash and cash equivalents. |
(e) |
Adjusted Leverage Ratio represents our Total Net Leverage Ratio as
calculated in accordance with our senior credit facility for each
period presented. |
Investor Relations:Raphael
Gross203-682-8253investorrelations@carrols.com
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