Company Prices $200 Million Convertible
Notes Expects Sales to Strengthen As Dining Rooms
Re-Open
Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced a business
update related to COVID-19 as well as first quarter 2020 financial
results.
Statement from David Deno, Chief
Executive Officer
Our priorities remain unchanged as we continue to address these
challenging times. We are focused on taking care of our people and
serving food in a safe environment that protects both our Team
Members and customers.
Since the beginning of the pandemic and closing of our dining
rooms on March 20th, we have leveraged our strong off-premises
business. As a result, we have tripled our average off-premises
sales per restaurant since the beginning of March. We have begun
reopening dining rooms as state and local governments allow. We
have 355 restaurant dining rooms opened with limited seating
capacity across multiple states as of Thursday evening. Early
results have been promising.
As these dining rooms reopen, we are adhering to the strongest
of safety measures, including additional sanitation and
disinfecting practices, enhanced hand-washing protocols, use of
gloves and facial protection of our employees, and we are providing
contactless payment options for our customers. In addition, each
dining room seating configuration has been modified to adhere to
social distancing and reduced capacity standards, and we are
leveraging our table management notification system to allow guests
to wait in their cars for their table.
Concurrently, we took steps to further strengthen our liquidity
position through the issuance of $200 million convertible notes. In
addition, we expect our weekly cash burn rate of $6 million to $8
million to improve as dining rooms continue to open. These funds
and our reduced burn rate provide us with additional flexibility to
navigate economic uncertainty over the medium to long-term.
As it relates to our first quarter results, we were on track to
deliver a strong quarter prior to the impact of the pandemic. The
strategies to enhance Total Shareholder Return that we outlined on
our Q4 earning’s call were working. Through February all of our
concepts were positive in sales and traffic. We achieved meaningful
expansion of our adjusted operating margins during those eight
weeks, and we had begun to see the benefits of our expected $40
million of cost savings that we outlined in February. Once we have
successfully navigated the ongoing crisis, we believe that we will
be well positioned to build on our early 2020 success and emerge a
stronger company.
Convertible Notes
Offering
On May 6, 2020, we announced the pricing of a $200 million
convertible senior notes offering. In connection with the pricing
of the notes, we entered into convertible note hedge and warrant
transactions to mitigate future dilution of our common shares. We
expect to close the transaction today subject to customary closing
conditions.
First Quarter Preliminary Diluted EPS
and Adjusted Diluted EPS
The following table reconciles Preliminary Diluted earnings per
share attributable to common stockholders to Preliminary Adjusted
diluted earnings per share for the first quarter 2020 (“Q1 2020”)
compared to the first quarter 2019 (“Q1 2019”). EPS information in
the following table remains unchanged from the information provided
in our May 5, 2020 press release.
Q1
2020
2019
CHANGE
Diluted earnings per share attributable to
common stockholders
$
(0.44
)
$
0.69
$
(1.13
)
Adjustments
0.58
0.06
0.52
Adjusted diluted earnings per share
$
0.14
$
0.75
$
(0.61
)
______________
See Preliminary Data and Non-GAAP Measures
later in this release.
For additional context, our first quarter adjusted diluted
earnings per share results included $16 million of relief pay
provided to hourly employees impacted by the closure of our dining
rooms.
First Quarter Preliminary Financial
Results
(dollars in millions)
Q1 2020
Q1 2019
CHANGE
Total revenues
$
1,008.3
$
1,128.1
(10.6)%
GAAP restaurant-level operating margin
12.1%
17.1%
(5.0)%
Adjusted restaurant-level operating margin
(1)
12.5%
17.1%
(4.6)%
GAAP operating income margin
(4.1)%
7.3%
(11.4)%
Adjusted operating income margin (1)
2.7%
7.8%
(5.1)%
___________________ (1)
See Preliminary Data and Non-GAAP Measures
later in this release.
- The decrease in total revenues was primarily due to: (i) lower
U.S. comparable restaurant sales driven by the COVID-19 pandemic,
(ii) domestic refranchising, (iii) foreign currency translation and
(iv) the decrease in franchise revenues driven by the COVID-19
pandemic, partially offset by the net impact of restaurant openings
and closures.
- GAAP restaurant-level operating margin decreased due to: (i)
lower comparable restaurant sales and costs in connection with the
COVID-19 pandemic, including relief pay, inventory obsolescence and
incremental operating costs, and (ii) commodity and labor
inflation.
- The primary difference between GAAP and Adjusted
restaurant-level operating margin is that adjusted restaurant-level
operating margin excludes the negative impact of inventory
obsolescence and spoilage costs associated with COVID-19.
- GAAP operating income margin decreased due to: (i)
restaurant-level operating margin discussed above, (ii) asset
impairment charges related to the COVID-19 pandemic and (iii) the
impact of restructuring and transformation initiatives. These costs
were excluded from our adjusted operating income margin.
First Quarter Preliminary Comparable
Restaurant Sales
Comparable Restaurant Sales information in the following table
remains unchanged from the information provided in our May 5, 2020
Press Release.
Comparable restaurant sales (stores
open 18 months or more):
EIGHT WEEKS ENDED
FEBRUARY 23, 2020
FIVE WEEKS ENDED MARCH
29, 2020
THIRTEEN
WEEKS ENDED MARCH 29,
2020
U.S.
Outback Steakhouse
2.2
%
(28.1
)%
(9.5
)%
Carrabba’s Italian Grill
4.5
%
(29.9
)%
(8.7
)%
Bonefish Grill
2.0
%
(38.6
)%
(13.9
)%
Fleming’s Prime Steakhouse & Wine
Bar
2.4
%
(40.0
)%
(13.2
)%
Combined U.S.
2.6
%
(31.0
)%
(10.4
)%
International
Outback Steakhouse - Brazil (1)
NM
NM
6.8
%
_________________
NM
Not meaningful.
(1)
Brazil comparable restaurant sales are on
a one-month lag and are presented on a calendar basis. Represents
results through February 29, 2020. Brazil’s First Quarter
comparable restaurant sales do not include any material impact from
the COVID-19 pandemic. Most of our Brazil restaurants are currently
open for off-premises only.
Strategic Alternatives Review
Update
In November 2019, we announced that we were exploring and
evaluating strategic alternatives that have the potential to
maximize value for our stockholders. In February 2020, in
connection with our year-end earnings release and conference call,
we provided an update on that process and discussed certain actions
that we planned to take. While we have implemented the 2020 cost
savings measures described at the time and remain committed to our
plan to support a growth-focused, operations centric organization
over the long term, we have suspended further activity with respect
to the strategic review process as we prioritize our response to
the COVID-19 pandemic. This includes a suspension of discussions
with interested parties with respect to our Brazil business.
Conference Call
The Company will host a conference call today, May 8, 2020 at
8:30 AM EST. The conference call will 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.
Preliminary Data
The unaudited data presented in this release is preliminary,
based upon certain management estimates and subject to the
completion of our procedures for the preparation and review of our
quarterly financial statements. We have not completed our final
closing procedures related to our analysis of goodwill, intangible
assets and certain other long-lived assets for impairment and the
related income tax provision adjustments that may result from
completion of such procedures. In addition, estimated cash burn
data has been provided to help investors understand and assess the
near-term impacts of the COVID-19 pandemic, but is subject to
variability and may not be indicative of our results or trends for
any full reporting period.
Non-GAAP Measures
In addition to the results provided in accordance with 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 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 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
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.
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 more than 1,450 restaurants in 48 states,
Puerto Rico, Guam and 20 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 “Statement from David Deno, Chief Executive Officer,”
and “Strategic Alternatives Review Update” 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: the
effects of the COVID-19 pandemic and uncertainties about its depth
and duration, as well as the impacts to economic conditions and
consumer behavior, including, among others: the inability of
workers, including delivery drivers, to work due to illness,
quarantine, or government mandates, temporary restaurant closures
due to reduced workforces or government mandates, the unemployment
rate, the extent, availability and effectiveness of any COVID-19
stimulus packages or loan programs, the ability of our franchisees
to operate their restaurants during the pandemic and pay royalties,
and trends in consumer behavior and spending during and after the
end of the pandemic; the outcome of our review of strategic
alternatives, including the impact on our ongoing business, our
stock price and our ability to successfully implement any
alternatives that we pursue including our ability to achieve the
cost savings described in this release; 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; the effects of changes in
tax laws; challenges associated with our remodeling, relocation and
expansion 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 cost and availability of credit; interest rate
changes; and compliance with debt covenants and the Company’s
ability to make debt payments and planned investments. 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
MARCH 29, 2020
MARCH 31, 2019
(in thousands, except per share
data)
(PRELIMINARY)
Revenues
Restaurant sales
$
996,237
$
1,111,642
Franchise and other revenues
12,100
16,489
Total revenues
1,008,337
1,128,131
Costs and expenses
Cost of sales
319,693
352,111
Labor and other related
309,269
319,015
Other restaurant operating
246,555
250,854
Depreciation and amortization
48,268
49,482
General and administrative
84,802
70,589
Provision for impaired assets and
restaurant closings
41,318
3,586
Total costs and expenses
1,049,905
1,045,637
(Loss) income from operations
(41,568
)
82,494
Other expense, net
(793
)
(168
)
Interest expense, net
(11,708
)
(11,181
)
(Loss) income before (Benefit) provision
for income taxes
(54,069
)
71,145
(Benefit) provision for income taxes
(19,655
)
5,496
Net (loss) income
(34,414
)
65,649
Less: net income attributable to
noncontrolling interests
197
1,349
Net (loss) income attributable to Bloomin’
Brands
(34,611
)
64,300
Redemption of preferred stock in excess of
carrying value
(3,496
)
—
Net (loss) income attributable to common
stockholders
$
(38,107
)
$
64,300
(Loss) earnings per share attributable to
common stockholders:
Basic
$
(0.44
)
$
0.70
Diluted
$
(0.44
)
$
0.69
Weighted average common shares
outstanding:
Basic
87,129
91,415
Diluted
87,129
92,661
_________________
Note: The unaudited data presented in this
table is preliminary, based upon certain management estimates and
subject to the completion of our procedures for the preparation and
review of our quarterly financial statements. We have not completed
our final closing procedures related to our analysis of goodwill,
intangible assets and certain other long-lived assets for
impairment and the related income tax provision adjustments that
may result from completion of such procedures.
TABLE TWO
BLOOMIN’ BRANDS, INC.
SEGMENT RESULTS
(UNAUDITED)
THIRTEEN WEEKS ENDED
(dollars in thousands)
MARCH 29, 2020
MARCH 31, 2019
U.S. Segment
(PRELIMINARY)
Revenues
Restaurant sales
$
884,889
$
1,000,813
Franchise and other revenues
9,608
13,694
Total revenues
$
894,497
$
1,014,507
Restaurant-level operating margin
11.5
%
16.7
%
Income from operations
$
11,379
$
113,035
Operating income margin
1.3
%
11.1
%
International Segment
Revenues
Restaurant sales
$
111,348
$
110,829
Franchise and other revenues
2,492
2,795
Total revenues
$
113,840
$
113,624
Restaurant-level operating margin
18.5
%
22.3
%
Income from operations
$
6,787
$
13,720
Operating income margin
6.0
%
12.1
%
Reconciliation of Segment Income from
Operations to Consolidated (Loss) Income from Operations
Segment income from operations
U.S.
$
11,379
$
113,035
International
6,787
13,720
Total segment income from operations
18,166
126,755
Unallocated corporate operating
expense
(59,734
)
(44,261
)
Total (loss) income from operations
$
(41,568
)
$
82,494
_________________
Note: The unaudited data presented in this
table is preliminary, based upon certain management estimates and
subject to the completion of our procedures for the preparation and
review of our quarterly financial statements. We have not completed
our final closing procedures related to our analysis of goodwill,
intangible assets and certain other long-lived assets for
impairment and the related income tax provision adjustments that
may result from completion of such procedures.
TABLE THREE
BLOOMIN’ BRANDS, INC.
SUPPLEMENTAL BALANCE SHEET
INFORMATION
(UNAUDITED)
MARCH 29, 2020
DECEMBER 29, 2019
(in thousands)
(PRELIMINARY)
Cash and cash equivalents (1)
$
403,395
$
67,145
Net working capital (deficit) (1)(2)
$
(265,584
)
$
(621,553
)
Total assets
$
3,766,601
$
3,592,683
Total debt, net (1)
$
1,418,640
$
1,048,704
Total stockholders’ equity
$
100,143
$
177,481
Common stock outstanding
87,417
86,946
_________________
Note: The unaudited data
presented in this table is preliminary, based upon certain
management estimates and subject to the completion of our
procedures for the preparation and review of our quarterly
financial statements. We have not completed our final closing
procedures related to our analysis of goodwill, intangible assets
and certain other long-lived assets for impairment and the related
income tax provision adjustments that may result from completion of
such procedures.
(1)
During the thirteen weeks ended
March 29, 2020, we borrowed $376.0 million, net of repayments, on
our revolving credit facility.
(2)
The change in net working capital
(deficit) during the thirteen weeks ended March 29, 2020 is
primarily due to cash proceeds from borrowings on our revolving
credit facility with the corresponding liability recorded as
Long-term debt, net on the Company’s Balance Sheet. We have, and in
the future may continue to have, negative working capital balances
(as is common for many restaurant companies). We operate
successfully with negative working capital because cash collected
on Restaurant sales is typically received before payment is due on
our current liabilities, and our inventory turnover rates require
relatively low investment in inventories. Additionally, ongoing
cash flows from restaurant operations and gift card sales are
typically 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 YEAR TO DATE
MARCH 29, 2020
MARCH 31, 2019
(PRELIMINARY)
Consolidated:
GAAP
ADJUSTED (1)
GAAP
ADJUSTED
Restaurant sales
100.0
%
100.0
%
100.0
%
100.0
%
Cost of sales
32.1
%
31.5
%
31.7
%
31.7
%
0.2
%
Labor and other related
31.0
%
31.0
%
28.7
%
28.7
%
(2.3
)%
Other restaurant operating
24.7
%
25.0
%
22.6
%
22.6
%
(2.4
)%
Restaurant-level operating margin (2)
12.1
%
12.5
%
17.1
%
17.1
%
(4.6
)%
Segments - Restaurant-level operating
margin:
U.S. (2)
11.5
%
11.7
%
16.7
%
16.7
%
(5.0
)%
International (2)
18.5
%
20.2
%
22.3
%
22.3
%
(2.1
)%
_________________
Note: The unaudited data presented in this table is preliminary,
based upon certain management estimates and subject to the
completion of our procedures for the preparation and review of our
quarterly financial statements. We have not completed our final
closing procedures related to our analysis of goodwill, intangible
assets and certain other long-lived assets for impairment and the
related income tax provision adjustments that may result from
completion of such procedures.
(1)
The table set forth below titled
“Restaurant-level Operating Margin Adjustments” provides additional
information regarding the adjustments for each period
presented.
(2)
The following categories of our
revenue and operating expenses are not included in restaurant-level
operating margin because we do not consider them reflective of
operating performance at the restaurant-level within a period:
(i)
Franchise and other revenues,
which are earned primarily from franchise royalties and other
non-food and beverage revenue streams, such as rental and sublease
income.
(ii)
Depreciation and amortization
which, although substantially all of which is related to
restaurant-level assets, represent historical sunk costs rather
than cash outlays for the restaurants.
(iii)
General and administrative
expense which includes primarily non-restaurant-level costs
associated with support of the restaurants and other activities at
our corporate offices.
(iv)
Asset impairment charges and
restaurant closing costs which are not reflective of ongoing
restaurant performance in a period.
Restaurant-level Operating Margin Adjustments - Following is a
summary of unfavorable (favorable) restaurant-level operating
margin adjustments recorded in Other restaurant operating expense
(unless otherwise noted below) for the following activities, as
described in table five of this release:
THIRTEEN WEEKS ENDED
MARCH 29, 2020
(dollars in millions)
(PRELIMINARY)
Restaurant and asset impairments and
closing costs
$
2.8
Restaurant relocations and related
costs
(0.1
)
COVID-19 related costs (1)
(6.2
)
$
(3.5
)
_________________ (1)
Adjustments recorded in Cost of sales. Includes $1.8 million of
adjustments recorded in the international segment. All other
adjustments were recorded within the U.S. segment.
TABLE FIVE
BLOOMIN’ BRANDS, INC.
(LOSS) INCOME FROM OPERATIONS,
NET (LOSS) INCOME AND DILUTED (LOSS) EARNINGS PER SHARE NON-GAAP
RECONCILIATIONS
(UNAUDITED)
THIRTEEN WEEKS ENDED
MARCH 29, 2020
MARCH 31, 2019
(in thousands, except per share
data)
(PRELIMINARY)
(Loss) income from operations
$
(41,568
)
$
82,494
Operating (loss) income margin
(4.1
)%
7.3
%
Adjustments:
COVID-19 related costs (1)
48,876
—
Severance and other transformational costs
(2)
22,232
2,855
Restaurant relocations and related costs
(3)
592
1,032
Legal and other matters
178
—
Restaurant and asset impairments and
closing costs (4)
(2,797
)
2,131
Total income from operations
adjustments
$
69,081
$
6,018
Adjusted income from operations
$
27,513
$
88,512
Adjusted operating income margin
2.7
%
7.8
%
Net (loss) income attributable to common
stockholders
$
(38,107
)
$
64,300
Adjustments:
Income from operations adjustments
69,081
6,018
Total adjustments, before income taxes
69,081
6,018
Adjustment to provision for income taxes
(5)
(21,995
)
(819
)
Redemption of preferred stock in excess of
carrying value (6)
3,496
—
Net adjustments
50,582
5,199
Adjusted net income
$
12,475
$
69,499
Diluted (loss) earnings per share
attributable to common stockholders
$
(0.44
)
$
0.69
Adjusted diluted earnings per share
$
0.14
$
0.75
Basic weighted average common shares
outstanding
87,129
91,415
Diluted weighted average common shares
outstanding (7)
87,963
92,661
_________________
Note: The unaudited data
presented in this table is preliminary, based upon certain
management estimates and subject to the completion of our
procedures for the preparation and review of our quarterly
financial statements. We have not completed our final closing
procedures related to our analysis of goodwill, intangible assets
and certain other long-lived assets for impairment and the related
income tax provision adjustments that may result from completion of
such procedures.
(1)
Represents costs incurred in
connection with the economic impact of the COVID-19 pandemic,
primarily consisting of fixed asset and right-of-use asset
impairments, inventory obsolescence and spoilage, contingent lease
liabilities and current expected credit losses.
(2)
Relates to severance and other
costs incurred as a result of transformational and restructuring
activities.
(3)
Represents asset impairment
charges and accelerated depreciation incurred in connection with
our relocation program.
(4)
Includes a lease buyout gain of
$2.8 million in 2020 and asset impairment charges and related costs
primarily related to approved closure and restructuring initiatives
in 2019.
(5)
Represents income tax effect of
the adjustments for the periods presented.
(6)
Represents consideration paid in
excess of the carrying value for the redemption of preferred stock
of our Abbraccio subsidiary.
(7)
Due to the GAAP net loss, the
effect of dilutive securities was excluded from the calculation of
GAAP diluted (loss) earnings per share for the thirteen weeks ended
March 29, 2020. For adjusted diluted earnings per share, the
calculation includes 834 dilutive shares for the thirteen weeks
ended March 29, 2020.
Following is a summary of the financial statement line item
classification of the net income adjustments:
THIRTEEN WEEKS ENDED
(dollars in thousands)
MARCH 29, 2020
MARCH 31, 2019
Cost of sales
$
6,182
$
—
Other restaurant operating
(2,643
)
(22
)
Depreciation and amortization
407
565
General and administrative
24,224
3,255
Provision for impaired assets and
restaurant closings
40,911
2,220
Provision for income taxes
(21,995
)
(819
)
Redemption of preferred stock in excess of
carrying value
3,496
—
Net adjustments
$
50,582
$
5,199
TABLE SIX
BLOOMIN’ BRANDS, INC.
SEGMENT INCOME FROM OPERATIONS
NON-GAAP RECONCILIATION
(UNAUDITED)
THIRTEEN WEEKS ENDED
(dollars in thousands)
MARCH 29, 2020
MARCH 31, 2019
U.S. Segment
(PRELIMINARY)
Income from operations
$
11,379
$
113,035
Operating income margin
1.3
%
11.1
%
Adjustments:
COVID-19 related costs (1)
42,979
—
Restaurant relocations and related costs
(2)
592
1,032
Severance (3)
—
700
Restaurant and asset impairments and
closing costs (4)
(2,797
)
1,835
Adjusted income from operations
$
52,153
$
116,602
Adjusted operating income margin
5.8
%
11.5
%
International Segment
Income from operations
$
6,787
$
13,720
Operating income margin
6.0
%
12.1
%
Adjustments:
COVID-19 related costs (1)
5,192
—
Restaurant and asset impairments and
closing costs (4)
—
296
Adjusted income from operations
$
11,979
$
14,016
Adjusted operating income margin
10.5
%
12.3
%
_________________
Note: The unaudited data presented in this table is preliminary,
based upon certain management estimates and subject to the
completion of our procedures for the preparation and review of our
quarterly financial statements. We have not completed our final
closing procedures related to our analysis of goodwill, intangible
assets and certain other long-lived assets for impairment and the
related income tax provision adjustments that may result from
completion of such procedures.
(1)
Represents costs incurred in connection
with the economic impact of the COVID-19 pandemic, primarily
consisting of fixed asset and right-of-use asset impairments,
inventory obsolescence and spoilage, contingent lease liabilities
and current expected credit losses.
(2)
Represents asset impairment charges and
accelerated depreciation incurred in connection with our relocation
program.
(3)
Relates to severance costs incurred as a
result of restructuring activities.
(4)
Includes a lease buyout gain of $2.8
million in 2020 and asset impairment charges and related costs
primarily related to approved closure and restructuring initiatives
in 2019.
TABLE SEVEN
BLOOMIN’ BRANDS, INC.
COMPARATIVE RESTAURANT
INFORMATION
(UNAUDITED)
Number of restaurants (at end of the
period):
DECEMBER 29, 2019
OPENINGS
CLOSURES
MARCH 29, 2020
U.S.
Outback Steakhouse
Company-owned
579
—
(4
)
575
Franchised
145
—
—
145
Total
724
—
(4
)
720
Carrabba’s Italian Grill
Company-owned
204
—
—
204
Franchised
21
—
—
21
Total
225
—
—
225
Bonefish Grill
Company-owned
190
—
—
190
Franchised
7
—
—
7
Total
197
—
—
197
Fleming’s Prime Steakhouse & Wine
Bar
Company-owned
68
—
(1
)
67
Other
Company-owned
4
—
—
4
U.S. total
1,218
—
(5
)
1,213
International
Company-owned
Outback Steakhouse—Brazil (1)
99
4
—
103
Other
29
—
—
29
Franchised
Outback Steakhouse - South Korea
72
2
(2
)
72
Other
55
2
(2
)
55
International total
255
8
(4
)
259
System-wide total
1,473
8
(9
)
1,472
____________________ (1)
The restaurant counts for Brazil are reported as of November 30,
2019 and February 29, 2020 to correspond with the balance sheet
dates of this subsidiary.
TABLE EIGHT
BLOOMIN’ BRANDS, INC.
COMPARABLE RESTAURANT SALES
INFORMATION
(UNAUDITED)
THIRTEEN WEEKS ENDED
MARCH 29, 2020
MARCH 31, 2019
Year over year percentage change:
Comparable restaurant sales (stores open
18 months or more):
U.S. (1)
Outback Steakhouse
(9.5
)%
3.5
%
Carrabba’s Italian Grill
(8.7
)%
0.3
%
Bonefish Grill
(13.9
)%
1.9
%
Fleming’s Prime Steakhouse & Wine
Bar
(13.2
)%
0.6
%
Combined U.S.
(10.4
)%
2.4
%
International
Outback Steakhouse - Brazil (2)
6.8
%
3.7
%
Traffic:
U.S.
Outback Steakhouse
(10.4
)%
(0.5
)%
Carrabba’s Italian Grill
(6.2
)%
(1.3
)%
Bonefish Grill
(15.1
)%
(1.9
)%
Fleming’s Prime Steakhouse & Wine
Bar
(13.6
)%
(1.6
)%
Combined U.S.
(10.4
)%
(0.9
)%
International
Outback Steakhouse - Brazil
8.4
%
(2.4
)%
Average check per person (3):
U.S.
Outback Steakhouse
0.9
%
4.0
%
Carrabba’s Italian Grill
(2.5
)%
1.6
%
Bonefish Grill
1.2
%
3.8
%
Fleming’s Prime Steakhouse & Wine
Bar
0.4
%
2.2
%
Combined U.S.
—
%
3.3
%
International
Outback Steakhouse - Brazil
(2.7
)%
6.5
%
____________________
(1)
Relocated restaurants closed more
than 60 days are excluded from comparable restaurant sales until at
least 18 months after reopening.
(2)
Excludes the effect of
fluctuations in foreign currency rates. Includes trading day impact
from calendar period reporting.
(3)
Average check per person includes
the impact of menu pricing changes, product mix and discounts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200508005070/en/
Mark Graff Group Vice President, IR & Finance (813)
830-5311
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