Carrols Restaurant Group, Inc. (“Carrols” or the “Company”)
(Nasdaq: TAST), the largest BURGER KING® franchisee in the United
States, today reported its financial results for the first quarter
ended April 3, 2022.
Highlights for the First Quarter of 2022
versus the First Quarter of 2021 include:
- Total restaurant sales increased
2.4% to $399.5 million compared to $390.0 million in the first
quarter of 2021;
- Comparable restaurant sales for the
Company's Burger King® restaurants increased 1.6%;
- Comparable restaurant sales for the
Company’s Popeyes® restaurants increased 2.2%;
- Adjusted EBITDA(1) totaled $4.3
million compared to $19.9 million in the prior year quarter;
- Adjusted Restaurant-Level EBITDA(1)
totaled $22.5 million compared to $39.5 million in the prior year
quarter;
- Net Loss was $21.3 million, or
$0.42 per diluted share, compared to Net Loss of $7.2 million, or
$0.14 per diluted share, in the prior year quarter; and
- Adjusted Net Loss(1) was $17.1
million, or $0.34 per diluted share, compared to Adjusted Net Loss
of $6.5 million, or $0.13 per diluted share, in the prior year
quarter.
Management Commentary
Paulo A. Pena, President and Chief Executive
Officer of Carrols, commented, “We grew comparable restaurant sales
at our Burger King restaurants during the first quarter by 1.6%
against a formidable 14.7% comparison in the prior year period
through average check growth of 9.9%, inclusive of menu price
increases and lower promotional activity, that was partially offset
by a traffic decline of 7.5%. Higher delivery sales contributed to
average check growth, rising to 6.2% of total restaurant sales in
the first quarter of 2022 from 4.8% in the year-ago period and 5.2%
in the fourth quarter of last year. However, monthly sales trends
were choppy. In January, our traffic was negatively impacted by
severe winter storms and staffing issues related to the Omicron
variant. In February, our relative performance benefitted from
favorable traffic comparisons due to severe winter storms in 2021
and in March we lapped the benefit of stimulus payments from last
year. Still, on a calendar comparison basis, our quarterly
comparable restaurant sales growth again exceeded the Burger King
U.S. system by approximately 160 basis points, extending our track
record of outperformance.”
Pena continued, “Inflationary challenges
continue to meaningfully affect our profitability metrics with
commodity costs and team member average hourly wages both
increasing on a percentage basis in the mid-teens compared to last
year. While we have already taken pricing actions and are
furthering efforts on menu and promotional optimization, we need to
continue to adapt and evolve how we operate our business in order
to maximize our profitably in this higher cost environment. This is
why I have been thoroughly evaluating Company operations and
capabilities as I formulate our go-forward strategy which I intend
to share in greater detail later this year. I have been extremely
impressed by our team and the operational expertise at Carrols and
I am confident we can make the necessary changes to address
industry challenges.”
Pena concluded, “We remain committed to
allocating capital in a disciplined manner while maintaining
substantial liquidity. We intend to deploy free cash flow to
repaying any revolver borrowings, making required mandatory
amortization payments under our senior credit facility and building
up our cash balances over the coming quarters in order to maintain
our strong balance sheet. We believe the structure of our financing
and our available liquidity position us extremely well to navigate
the current operating environment. Similar to the last two years,
we expect that our net capex spend will be below $50 million as we
limit expenditures primarily to critical maintenance needs and
holdover remodeling and new construction projects that began last
year.”
First Quarter 2022 Financial
Results
Total restaurant sales were $399.5 million in
the first quarter of 2022 compared to $390.0 million in the first
quarter of 2021, an increase of 2.4%. Comparable restaurant sales
for the Company’s Burger King restaurants increased 1.6% compared
to a 14.7% increase in the prior year quarter.
Restaurant sales for the Company’s Popeyes
restaurants, which represented 5.4% of total restaurant sales in
the first quarter of 2022, increased on a comparable restaurant
sales basis by 2.2% compared to a 0.5% increase in the first
quarter of 2021. On a calendar comparison basis, the Company
outperformed the Popeyes U.S. system in comparable restaurant sales
in the first quarter of 2022 by approximately 610 basis points.
Adjusted Restaurant-Level EBITDA(1) was $22.5
million in the first quarter of 2022 compared to $39.5 million in
the prior year period. Adjusted Restaurant-Level EBITDA margin
declined to 5.6% of restaurant sales from 10.1% in the first
quarter of 2021, reflecting substantially higher food, beverage and
packaging costs, higher wage and related expenses, and higher other
restaurant operating expenses. The hourly cost and availability of
labor remain a challenge for the Company and the restaurant
industry although this past quarter we saw improved application
flow and reduced turnover compared to levels experienced in the
back half of last year. Commodity supply chain cost pressures also
continue to adversely impact the Company’s margins and we expect
commodity inflation to remain elevated until late this year.
General and administrative expenses increased to
$22.0 million in the first quarter of 2022 from $21.4 million in
the prior year period.
Adjusted EBITDA(1) was $4.3 million in the first
quarter of 2022 compared to $19.9 million in the first quarter of
2021. Adjusted EBITDA margin decreased to 1.1% of restaurant sales
from 5.1%. Given business seasonality, the Company’s first quarter
has historically been and remains the weakest of the year due to
reduced revenue levels against fixed and semi-variable costs during
the period. While we do not provide annual guidance, we do not view
first quarter 2022 results as representative of our full year
expectations.
Loss from operations was $19.8 million in the
first quarter of 2022 compared to loss from operations of $3.1
million in the prior year quarter.
Interest expense increased to $7.4 million in
the first quarter of 2022 from $6.7 million in the first quarter of
2021.
Net Loss was $21.3 million in the first quarter
of 2022, or $0.42 per diluted share, compared to a Net Loss of $7.2
million, or $0.14 per diluted share, in the prior year quarter. Net
Loss in the first quarter of 2022 included $0.5 million in
impairment and other lease charges, $1.9 million in executive
transition, litigation and other professional expenses and a $2.2
million valuation allowance for deferred taxes. Among other items,
Net Loss in the first quarter of 2021 included a $0.4 million in
impairment and other lease charges and $0.3 million in litigation
and other professional expenses, among other items.Adjusted Net
Loss(1) was $17.1 million, or $0.34 per diluted share in the first
quarter of 2022, compared to an Adjusted Net Loss of $6.5 million,
or $0.13 per diluted share, in the prior year quarter.
Free Cash Flow(2) for the first quarter of 2022
was a use of $39.1 million compared to a use of $3.6 million in the
prior year period. The greater outflow in this year’s first quarter
was due to reduced earnings relative to the same period last year,
a $10.8 million repayment of one-half of the FICA deferral we
benefitted from in 2020 and the first six-month interest payment on
the senior notes we issued in June 2021 of $8.9 million. We expect
that the absence of these clustered payments will be beneficial to
free cash flow generation in the back half of the year.
Balance Sheet Update
The Company ended the first quarter of 2022 with
cash and cash equivalents of $8.5 million and long-term debt
(including current portion) and finance lease liabilities of $499.7
million. There was $20.0 million in revolving credit borrowings and
$9.0 million of letters of credit issued under the Company’s $215.0
million revolving credit facility, leaving $186.0 million of
borrowing availability as of April 3, 2022. Including the cash
balance, the Company had $194.5 million of available liquidity at
the end of the first quarter of 2022. The outstanding borrowings on
the revolving credit facility are expected to be fully repaid in
the back half of 2022.
We currently have no covenants or other
restrictions that prohibit us from accessing the available
quarter-end balance of $186.0 million under our $215.0 million
revolving credit facility. Under our credit facility, we are only
subject to a senior secured leverage ratio covenant if our
aggregate total revolver borrowings exceed $75.3 million (including
the amount by which outstanding letters of credit exceed $12.0
million). With $20.0 million of revolving credit borrowings
outstanding (plus only $9.0 million of outstanding letters of
credit) at the end of the first quarter of 2022, we were not
governed by a senior secured leverage ratio covenant at that time.
Furthermore, we do not expect revolver borrowings to increase to
levels that would require measurement of this covenant this year.
Our senior secured leverage ratio was 2.6 times at the end of the
first quarter of 2022 subject to a limit of 5.75 times in our
credit agreement, when applicable.
Conference Call Today
Paulo A. Pena, President and Chief Executive
Officer, and Anthony E. Hull, Chief Financial Officer, will host a
conference call to discuss first quarter 2022 financial results at
8:00 a.m. (ET).
The conference call can be accessed live over
the telephone by dialing 201-493-6725. A replay will be available
three hours after the call and can be accessed by dialing
412-317-6671; the passcode is 13728703. The replay will be
available until Thursday, May 19, 2022. Investors and interested
parties may listen to a webcast of this conference call by visiting
the Investor Relations page of the Company’s website located at
www.carrols.com. The press release and related presentation slides
will be accessible via the same website page prior to the scheduled
call.
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 1,026 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.
Footnotes
(1)Adjusted EBITDA, Adjusted Restaurant-Level
EBITDA and Adjusted Net Income (Loss) are non-GAAP financial
measures. Refer to the definitions and reconciliation of these
measures to net income (loss) or to income (loss) from operations
in the tables at the end of this release.
(2)Free Cash flow is a non-GAAP financial
measure. Refer to the definition and reconciliation of this measure
in the tables at the end of this release.
Carrols Restaurant Group,
Inc.Consolidated Statements of
Operations(In thousands, except per share amounts)
|
(unaudited) |
|
Three Months Ended (a) |
|
April 3, 2022 |
|
April 4, 2021 |
Restaurant sales |
$ |
399,476 |
|
|
$ |
389,993 |
|
Costs and expenses: |
|
|
|
Food, beverage and packaging costs |
|
123,057 |
|
|
|
113,790 |
|
Restaurant wages and related expenses |
|
141,620 |
|
|
|
129,646 |
|
Restaurant rent expense |
|
31,013 |
|
|
|
30,314 |
|
Other restaurant operating expenses |
|
65,407 |
|
|
|
61,419 |
|
Advertising expense |
|
15,964 |
|
|
|
15,369 |
|
General and administrative expenses (b) |
|
22,017 |
|
|
|
21,369 |
|
Depreciation and amortization |
|
19,542 |
|
|
|
20,609 |
|
Impairment and other lease charges |
|
496 |
|
|
|
353 |
|
Other expense, net (c) |
|
202 |
|
|
|
227 |
|
Total costs and expenses |
|
419,318 |
|
|
|
393,096 |
|
Loss from operations |
|
(19,842 |
) |
|
|
(3,103 |
) |
Interest expense |
|
7,436 |
|
|
|
6,726 |
|
Loss before income taxes |
|
(27,278 |
) |
|
|
(9,829 |
) |
Benefit from income taxes |
|
(6,009 |
) |
|
|
(2,661 |
) |
Net loss |
$ |
(21,269 |
) |
|
$ |
(7,168 |
) |
|
|
|
|
Basic and diluted net loss per
share (d)(e) |
$ |
(0.42 |
) |
|
$ |
(0.14 |
) |
Basic and diluted weighted
average common shares outstanding |
|
50,460 |
|
|
|
49,824 |
|
(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 3, 2022 and April 4, 2021 each included
thirteen weeks.
(b) General and administrative expenses include
stock-based compensation expense of $1.9 million and $1.5 million
for the three months ended April 3, 2022 and April 4,
2021, respectively.
(c) Other expense, net, for the three months
ended April 3, 2022 included a loss on disposal of assets of
$0.3 million and additional gains on previous sale-leaseback
transactions of $0.1 million. Other expense, net, for the three
months ended April 4, 2021 included a loss on disposal of assets of
$0.2 million.
(d) 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.
(e) 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 3, 2022 |
|
April 4, 2021 |
Revenue: |
|
|
|
Burger King restaurant sales |
$ |
377,828 |
|
|
$ |
368,488 |
|
Popeyes restaurant sales |
|
21,648 |
|
|
|
21,505 |
|
Total revenue |
$ |
399,476 |
|
|
$ |
389,993 |
|
Change in Comparable Burger
King Restaurant Sales (a) |
|
1.6 |
% |
|
|
14.7 |
% |
Change in Comparable Popeyes
Restaurant Sales (a) |
|
2.2 |
% |
|
|
0.5 |
% |
|
|
|
|
Average Weekly Sales per
Burger King Restaurant (b) |
$ |
28,391 |
|
|
$ |
28,094 |
|
Average Weekly Sales per
Popeyes Restaurant (b) |
$ |
25,618 |
|
|
$ |
25,458 |
|
|
|
|
|
Adjusted Restaurant-Level
EBITDA (c) |
$ |
22,460 |
|
|
$ |
39,484 |
|
Adjusted Restaurant-Level
EBITDA margin (c) |
|
5.6 |
% |
|
|
10.1 |
% |
|
|
|
|
Adjusted EBITDA (c) |
$ |
4,302 |
|
|
$ |
19,866 |
|
Adjusted EBITDA margin
(c) |
|
1.1 |
% |
|
|
5.1 |
% |
|
|
|
|
Adjusted Net Loss (c) |
$ |
(17,066 |
) |
|
$ |
(6,500 |
) |
Adjusted Diluted Net Loss per
share (c) |
$ |
(0.34 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
Number of Burger King
restaurants: |
|
|
|
Restaurants at beginning of period |
|
1,026 |
|
|
|
1,009 |
|
New restaurants (including offsets) |
|
2 |
|
|
|
2 |
|
Restaurants closed (including offsets) |
|
(2 |
) |
|
|
(1 |
) |
Restaurants at end of period |
|
1,026 |
|
|
|
1,010 |
|
Average Number of operating Burger King restaurants |
|
1,023.7 |
|
|
|
1,009.0 |
|
|
|
|
|
Number of Popeyes
restaurants: |
|
|
|
Restaurants at beginning and end of period |
|
65 |
|
|
|
65 |
|
Average Number of operating Popeyes restaurants |
|
65.0 |
|
|
|
65.0 |
|
(a) Restaurants are generally included in
comparable restaurant sales 12 months after their acquisition.
Sales from newly developed restaurants 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
comparison to the comparable thirteen week period 52-weeks
prior.
(b) Average weekly sales per restaurant are
derived by dividing restaurant sales for the thirteen week period
by the average number of restaurants operating during such
period.
(c) EBITDA, Adjusted Restaurant-Level EBITDA,
Adjusted Restaurant-Level EBITDA margin, Adjusted EBITDA, Adjusted
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 the
Company's reconciliation of net loss to EBITDA, Adjusted EBITDA,
Adjusted Net Loss and to the Company's 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)
|
(unaudited) |
|
Three Months Ended (a) |
|
April 3, 2022 |
|
April 4, 2021 |
Reconciliation of
EBITDA and Adjusted EBITDA: (b) |
|
|
|
Net loss |
$ |
(21,269 |
) |
|
$ |
(7,168 |
) |
Benefit from income taxes |
|
(6,009 |
) |
|
|
(2,661 |
) |
Interest expense |
|
7,436 |
|
|
|
6,726 |
|
Depreciation and amortization |
|
19,542 |
|
|
|
20,609 |
|
EBITDA |
|
(300 |
) |
|
|
17,506 |
|
Impairment and other lease charges |
|
496 |
|
|
|
353 |
|
Stock-based compensation expense |
|
1,941 |
|
|
|
1,469 |
|
Pre-opening costs (c) |
|
45 |
|
|
|
29 |
|
Executive transition, litigation and other professional expenses
(d) |
|
1,918 |
|
|
|
282 |
|
Other expense, net (e)(f) |
|
202 |
|
|
|
227 |
|
Adjusted
EBITDA |
$ |
4,302 |
|
|
$ |
19,866 |
|
|
|
|
|
Reconciliation of
Adjusted Restaurant-Level EBITDA: (b) |
|
|
|
Loss from operations |
$ |
(19,842 |
) |
|
$ |
(3,103 |
) |
Add: |
|
|
|
General and administrative expenses |
|
22,017 |
|
|
|
21,369 |
|
Pre-opening costs (c) |
|
45 |
|
|
|
29 |
|
Depreciation and amortization |
|
19,542 |
|
|
|
20,609 |
|
Impairment and other lease charges |
|
496 |
|
|
|
353 |
|
Other expense, net (e)(f) |
|
202 |
|
|
|
227 |
|
Adjusted
Restaurant-Level EBITDA |
$ |
22,460 |
|
|
$ |
39,484 |
|
|
|
|
|
Reconciliation of
Adjusted Net Loss: (b) |
|
|
|
Net loss |
$ |
(21,269 |
) |
|
$ |
(7,168 |
) |
Add: |
|
|
|
Impairment and other lease charges |
|
496 |
|
|
|
353 |
|
Pre-opening costs (c) |
|
45 |
|
|
|
29 |
|
Executive transition, litigation and other professional expenses
(d) |
|
1,918 |
|
|
|
282 |
|
Other expense, net (e)(f) |
|
202 |
|
|
|
227 |
|
Income tax effect on above adjustments (g) |
|
(665 |
) |
|
|
(223 |
) |
Valuation allowance for deferred taxes (h) |
|
2,207 |
|
|
|
— |
|
Adjusted Net
Loss |
$ |
(17,066 |
) |
|
$ |
(6,500 |
) |
Adjusted diluted net loss per
share (i) |
$ |
(0.34 |
) |
|
$ |
(0.13 |
) |
Adjusted diluted weighted
average common shares outstanding |
|
50,460 |
|
|
|
49,824 |
|
(a) The Company uses a 52 or 53 week fiscal year
that ends the Sunday closest to December 31. The three months ended
April 3, 2022 and April 4, 2021 both included thirteen
weeks.
(b) Within this 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, stock-based
compensation expense, restaurant pre-opening costs, non-recurring
litigation and other professional expenses, and other expense.
Adjusted Restaurant-Level EBITDA represents loss from operations as
adjusted to exclude general and administrative expenses,
pre-opening costs, depreciation and amortization, impairment and
other lease charges and other income and expense. Adjusted Net Loss
represents net loss as adjusted, net of tax, to exclude impairment
and other lease charges, restaurant pre-opening costs,
non-recurring litigation and other professional expenses, other
expense and valuation allowance for deferred taxes.
Adjusted EBITDA, Adjusted Restaurant-Level
EBITDA and Adjusted Net Loss are presented because the Company
believes that they provide a more meaningful comparison than EBITDA
and net loss of its core business operating results, as well as
with those of other similar companies. Additionally, Adjusted
Restaurant-Level EBITDA is presented because it excludes restaurant
pre-opening costs, other 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 U.S. 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 U.S. 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) Pre-opening costs for the three months ended
April 3, 2022 and April 4, 2021 include training, labor
and occupancy costs incurred during the construction of new
restaurants.
(d) Executive transition, litigation and other
professional expenses for the three months ended April 3, 2022
and April 4, 2021 include executive recruiting and severance
costs, costs pertaining to an ongoing lawsuit with one of the
Company's former vendors and other non-recurring professional
service expenses.
(e) Other expense, net, for the three months
ended April 3, 2022 included a loss on disposal of assets of
$0.3 million and additional gains on previous sale-leaseback
transactions of $0.1 million.
(f) Other expense, net, for the three months
ended April 4, 2021 included a loss on disposal of assets of $0.2
million.
(g) The income tax effect related to the
adjustments to Adjusted Net Loss was calculated using an
incremental income tax rate of 25% for the three months ended
April 3, 2022 and April 4, 2021.
(h) Reflects the removal of the income tax
provision recorded for the establishment of a valuation allowance
on all our net deferred income tax assets during the three months
ended April 3, 2022.
(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, where
applicable.
Carrols Restaurant Group,
Inc.Reconciliation of Non-GAAP
Measures(In thousands)
|
(unaudited) |
|
Three Months Ended (a) |
|
April 3, 2022 |
|
April 4, 2021 |
Reconciliation of Free
Cash Flow: (b) |
|
|
|
Net cash used for operating activities |
$ |
(26,569 |
) |
|
$ |
7,036 |
|
Net cash used for investing
activities |
|
(12,554 |
) |
|
|
(10,627 |
) |
Total Free Cash
Flow |
$ |
(39,123 |
) |
|
$ |
(3,591 |
) |
|
At 4/3/2022 |
|
At 1/2/2022 |
|
At 4/4/2021 |
Long-term debt and finance lease liabilities (c) |
$ |
499,673 |
|
$ |
478,181 |
|
$ |
493,315 |
Cash and cash equivalents |
|
8,481 |
|
|
29,151 |
|
|
59,929 |
Net Debt (d) |
|
491,192 |
|
|
449,030 |
|
|
433,386 |
Senior Secured Net Debt
(e) |
|
191,192 |
|
|
149,030 |
|
|
433,386 |
Total Net Debt Leverage Ratio
(f) |
6.66x |
|
5.02x |
|
3.40x |
Senior Secured Net Debt
Leverage Ratio (g) |
2.59x |
|
1.67x |
|
3.40x |
(a) The Company uses a 52 or 53 week fiscal year
that ends the Sunday closest to December 31. The three months ended
April 3, 2022 and April 4, 2021 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 net cash paid for acquisitions excluding
proceeds from acquisition-related sale-leaseback transactions.
Management believes that Free Cash Flow, when viewed with the
Company's results of operations in accordance with U.S. 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 U.S 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 3, 2022 and April 4, 2021 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 3, 2022.
(c) Long-term debt and finance lease liabilities
(including current portion and excluding deferred financing costs
and original issue discount) at April 3, 2022 included
$170,813 of outstanding Term B loans and $20,000 of outstanding
revolving borrowings under the Company's senior credit facilities,
$300,000 of 5.875% Senior Notes due 2029 and $8,860 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 2, 2022 included
$171,875 of outstanding Term B loans, $300,000 of 5.875% Senior
Notes due 2029 and $6,306 of finance lease liabilities. 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 B and $73,688 of Term
B-1 loans under our senior credit facilities and $1,315 of finance
lease liabilities.
(d) Net Debt represents total long-term debt and
finance lease liabilities less cash and cash equivalents.
(e) Senior Secured Net Debt represents total net
debt less the $300 million of unsecured 5.875% Senior Notes, due
2029.
(f) Total Net Debt Leverage Ratio represents the
Company's Total Net Debt Leverage Ratio as calculated in accordance
with its senior credit facilities for each period presented.
(g) Senior Secured Net Debt Leverage Ratio
represents the Company's Net Debt Leverage Ratio as calculated in
accordance with its senior credit facilities for each period
presented.
Investor Relations:Raphael
Gross203-682-8253investorrelations@carrols.com
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