Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or
the "Company"), a full-service restaurant chain serving an
innovative selection of high-quality gourmet burgers in a
family-friendly atmosphere, today reported financial results for
the fiscal fourth quarter and year ended December 26, 2021.
Fourth Quarter 2021 Key Highlights
- Restaurant revenue of $276.7 million increased 41.5% compared
to 2020;
- Comparable restaurant revenue increased 40.1% compared to
2020;
- Restaurants that were at or above 2019 staffing levels had
comparable restaurant revenues of 49.3%, compared to 2020;
- Net loss of $21.3 million improved $18.0 million compared to
2020;
- Adjusted EBITDA(1) (a non-GAAP metric) of $8.9 million improved
$15.3 million compared to 2020;
- At the end of 2021, we were 93% staffed at the salaried manager
positions, and 96% staffed in the General Manager role;
- Seventh consecutive quarter of sustained off-premises sales of
more than double pre-pandemic levels, with off-premises sales mix
of 31.4% compared to approximately 14.0% in the fourth quarter of
2019. Off-premises sales comprised $84.7 million, $85.1 million and
$36.7 million of comparable restaurant revenue for the fourth
quarters of 2021, 2020 and 2019, respectively;
- Soft-launched new iOS and Android mobile apps, a new website
ordering experience, and a new loyalty platform, creating an
integrated digital ecosystem which we expect will improve traffic,
order completion and average Guest check; and
- Restaurants that have been serving Donatos® pizza prior to 2021
are continuing to benefit from growing incremental sales beyond
their first year as operations mature and brand affinity grows,
with comparable restaurant revenue up 8.1% in the fourth quarter
compared to 2019 in restaurants without supply chain issues.
Paul J. B. Murphy III, Red Robin’s President and Chief Executive
Officer, said, "As the Omicron variant has receded in recent weeks,
we are seeing encouraging signs that our business is beginning to
normalize with improved staffing levels across our system, growing
dine-in sales and sustained off-premises volumes. We remain
intently focused on continuing to strengthen our staffing levels
and reducing operational complexity to deliver a memorable quality
Guest experience and meet the increasing level of demand as Guests
are returning to our restaurants.”
Murphy continued, “We remain confident in our execution of our
four strategic pillars which focus on (i) being the employer of
choice in the industry, (ii) delivering a variety of Gourmet
burgers and mainstream favorites that our Guests love, (iii)
creating relevant, personalized and memorable Guest experiences,
and (iv) executing our growth platforms. Discretionary capital in
2022 will be allocated to our growth platforms that create
meaningful value to our shareholders, including Donatos®, our
digital ecosystem, and operational and restaurant
enhancements.”
Fourth Quarter 2021 Financial Summary Compared to 2020 and
2019
The following table presents financial highlights for the fiscal
fourth quarter of 2021, compared to results from the same period in
2020:
Twelve weeks ended
December 26, 2021
December 27, 2020
Total revenues (millions)
$
283.4
$
201.1
Restaurant revenues (millions)
276.7
195.5
Net loss (millions)
(21.3
)
(39.3
)
Restaurant Level Operating Profit
(millions)(2)
$
36.0
$
12.2
Restaurant Level Operating Profit
Margin(2)
13.0
%
6.2
%
Adjusted EBITDA (millions)(1)
$
8.9
$
(6.4
)
Loss per diluted share ($ per share)
$
(1.36
)
$
(2.53
)
Adjusted loss per diluted share ($ per
share)(2)
$
(1.03
)
$
(1.79
)
__________________________________
(1)
See schedule III for a reconciliation of
Adjusted EBITDA, a non-GAAP measure, to net loss.
(2)
See schedule I for a reconciliation of
Adjusted loss per diluted share, a non-GAAP measure, to loss per
diluted share, and schedule II for a reconciliation of restaurant
level operating profit and restaurant level operating profit
margin, non-GAAP measures, to Loss from operations.
Fourth Quarter 2021 Operating Results
Comparable restaurant revenue(3) increased 40.1% in the fourth
quarter of 2021 compared to the same period a year ago, driven by a
26.6% increase in Guest count and a 13.5% increase in average Guest
check. The increase in average Guest check resulted from a 4.2%
increase in pricing, a 7.0% increase in menu mix including
incremental sales related to checks that include Donatos® pizza and
a 2.3% decrease in discounts. The increase in menu mix was
primarily driven by higher sales of beverages and our limited time
menu offerings due to higher dine-in sales volumes.
The decrease in Net loss compared to 2020 was primarily due to
an $81.1 million increase in restaurant revenue, partially offset
by higher marketing expenses, wage rates and transitory costs. The
increase in Adjusted EBITDA(2) was due to the aforementioned
factors less the impact of Interest expense, Income tax benefits,
Depreciation and amortization, and Other charges. $3.2 million of
transitory labor and other operating costs were incurred due to
staffing and supply chain challenges, including hiring and training
costs, substitute products, temporarily outsourced janitorial
costs, one-time bonuses and overtime pay.
Comparable restaurant revenue decreased 0.7% compared to 2019,
primarily due to the negative impact of the Omicron variant, and
staffing challenges at certain restaurants on traffic. Restaurants
that were at or above 2019 staffing levels had comparable
restaurant revenues of 6.1% compared to 2019.
Financial Highlights for the Fiscal Year Ended December 26,
2021 Compared to the Fiscal Year Ended December 27, 2020
Total revenues for the fiscal year ended December 26, 2021 were
$1.2 billion, an increase of $293.4 million from the fiscal year
ended December 27, 2020 primarily driven by favorable Guest counts,
menu mix, and pricing, and lapping the impacts of the COVID-19
pandemic, including limited occupant capacities and operating an
off-premises only model at our restaurants during periods in which
indoor dining rooms were closed in 2020 and closed restaurants.
GAAP loss per diluted share was $3.19 in 2021 compared to GAAP loss
per diluted share of $19.29 in 2020, and adjusted loss per diluted
share was $2.43 compared to adjusted loss per diluted share of
$11.33 in the prior year. See Schedule I for a reconciliation of
adjusted loss per diluted share (a non-GAAP financial measure) to
GAAP net loss and GAAP loss per diluted share. For fiscal year
2021, comparable restaurant revenue(1) increased 33.5%, and
comparable restaurant Guest count increased 22.3% compared to
2020.
Balance Sheet and Liquidity
As of December 26, 2021, the Company had outstanding borrowings
under the credit facility of $176.1 million, in addition to amounts
issued under letters of credit of $7.9 million, and liquidity of
approximately $57.9 million including cash on hand and available
borrowing capacity under its credit facility. The Company has made
net repayments of $29.9 million on its Credit Facility since
December 29, 2019.
On March 4, 2022, the Company replaced its prior credit
agreement with a new $225.0 million, five-year credit agreement
with Fortress Credit Corp. The new credit agreement provides for a
$200.0 million term loan and a $25.0 million revolving line of
credit, and was arranged by J.P. Morgan Chase Bank N.A. as Sole
Lead Arranger and Sole Bookrunner. The new agreement gives us
long-term flexibility to strategically invest in our business and
create value for our shareholders.
Outlook for 2022 and Guidance Policy
The Company provides guidance of select information related to
the Company's financial and operating performance, and such
measures may differ from year to year. The Company’s guidance
assumes there are no significant disruptions or impacts to its
business due to the COVID-19 pandemic or the impact of,
geopolitical events, or other factors affecting the macroeconomic
environment during 2022. The projections are as of this date. The
Company assumes no obligation to update or supplement this
information.
The Company currently expects the following for full year
2022:
- Mid-to-high single digit commodity and restaurant labor cost
inflation;
- Selling, general and administrative costs between $145 and $155
million;
- Adjusted EBITDA(1) between $80 and $90 million; and,
- Capital expenditures of $40 to $50 million, as we continue to
progress our strategic initiatives and focus on operational
execution as we emerge from the pandemic, including continued
investment in maintaining our restaurants and systems, modest new
restaurant growth, Donatos® expansion to approximately 50
restaurants, improvements to our operational technology solutions,
and off-premises execution enhancements.
We currently expect to increase pricing in the mid-single digits
during 2022, along with other operating initiatives underway, to
mitigate cost inflation. We expect margin pressures to persist
during 2022, but we expect our trajectory to improve through the
year with increased staffing and dine-in sales, and reduced
transitory costs. We expect to achieve 2019 restaurant-level
operating profit margin in 2023.
(1)
Please refer to the Reconciliation of Net
Loss to EBITDA and Adjusted EBITDA included on Schedule III of this
release. The Company has not provided a reconciliation of its
adjusted EBITDA outlook to the most comparable GAAP measure of Net
loss. Providing Net loss guidance is potentially misleading and not
practical given the difficulty of projecting event-driven
transactional and other non-core operating items that are included
in Net loss, including asset impairments and income tax valuation
adjustments. The reconciliations of adjusted EBITDA to Net loss for
the historical periods presented below are indicative of the
reconciliations that will be prepared upon completion of the
periods covered by the non-GAAP guidance.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its
fourth quarter and full year 2021 results today at 5:00 p.m. ET.
The conference call can be accessed live over the phone by dialing
(412)-317-5104. A replay will be available from approximately two
hours after the end of the call and can be accessed by dialing
(412)-317-6671; the conference ID is 10164148. The replay will be
available through Wednesday, March 17, 2022.
The call will be webcast live from the Company's website at
ir.redrobin.com/news-events/ir-calendar, and later archived.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual
dining restaurant chain founded in 1969 that operates through its
wholly-owned subsidiary, Red Robin International, Inc., and under
the trade name, Red Robin Gourmet Burgers and Brews. We believe
nothing brings people together like burgers and fun around our
table, and no one makes moments of connection over craveable food
more memorable than Red Robin. We serve a variety of burgers and
mainstream favorites to Guests of all ages in a casual, playful
atmosphere. In addition to our many burger offerings, Red Robin
serves a wide array of salads, appetizers, entrees, desserts,
signature beverages and Donatos® pizza at select locations. It's
now easy to enjoy Red Robin anywhere with online ordering available
for to-go, delivery and catering. There are more than 525 Red Robin
restaurants across the United States and Canada, including those
operating under franchise agreements. Red Robin… YUMMM®!
Forward-Looking Statements
Forward-looking statements in this press release regarding the
Company's future performance; anticipated uses of discretionary
capital and planned investments in growth platforms; demands of
Guests including with the continued demand for carryout, curbside
and delivery options; expectations with respect to our market share
and frequency; our ability to continue supporting the ongoing
execution of our business strategy; continued uncertainty of the
impact of industry labor and supply chain challenges and
inflationary pressures; anticipated trajectory and impacts of the
COVID-19 pandemic, including social distancing measures; statements
under the heading "Outlook for 2022 and Guidance Policy," including
with respect to commodity and wage inflation, selling, general and
administrative costs, adjusted EBITDA, capital expenditures
including investment in our restaurant and systems, Donatos®
expansion, planned improvements to our operational technology
solutions and off-premises execution enhancements, and our
expectations regarding the lack of significant disruptions or
impacts to the Company's business of COVID-19, geopolitical or
other macroeconomic factors; and all other statements that are not
historical facts are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements
are based on assumptions believed by the Company to be reasonable
and speak only as of the date on which such statements are made.
Without limiting the generality of the foregoing, words such as
"expect," "believe," "anticipate," "intend," "plan," "project,"
"could," "should," "will," "outlook" or "estimate," or the negative
or other variations thereof or comparable terminology are intended
to identify forward-looking statements. Except as required by law,
the Company undertakes no obligation to update such statements to
reflect events or circumstances arising after such date and
cautions investors not to place undue reliance on any such
forward-looking statements. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those described in the statements based on a number
of factors, including but not limited to the following: the impact
of COVID-19 and new variants on our results of operations, staffing
levels, supply chain, and liquidity; the effectiveness of the
Company's strategic initiatives, including alternative labor and
service models, and operational improvement initiatives and our
ability to execute on such strategic initiatives; our ability to
recruit, staff, train, and retain our workforce for service
execution; the effectiveness and timing of the Company's marketing
strategies and promotions; menu changes and pricing strategy; the
anticipated sales growth, costs, and timing of the Donatos®
expansion; the implementation, rollout, and timing of new
technology solutions, including off-premises enhancements; our
ability to achieve revenue and cost savings from off-premises sales
and other initiatives; competition in the casual dining market and
discounting by competitors; changes in consumer spending trends and
habits; changes in the availability and cost of food products,
labor, and energy; general economic and operating conditions,
including changes in consumer disposable income, weather
conditions, and other events affecting the regions where our
restaurants are operated; the adequacy of cash flows and the cost
and availability of capital or credit facility borrowings; changes
in federal, state, or local laws and regulations affecting the
operation of our restaurants, including minimum wage and tip credit
minimum wage, consumer and occupational health and safety
regulations, health insurance coverage and other benefits,
nutritional disclosures, and employment eligibility-related
documentation requirements; costs and other effects of legal claims
by Team Members, franchisees, customers, vendors, stockholders, and
others, including negative publicity regarding food safety or cyber
security; and other risk factors described from time to time in the
Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all
amendments to those reports) filed with the U.S. Securities and
Exchange Commission.
RED ROBIN GOURMET BURGERS,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Twelve Weeks Ended
Fifty-two Weeks Ended
December 26, 2021
December 27, 2020
December 26, 2021
December 27, 2020
Revenues:
Restaurant revenue
$
276,697
$
195,549
$
1,137,733
$
854,136
Franchise royalties, fees, and other
revenue
6,687
5,501
24,345
14,579
Total revenues
283,384
201,050
1,162,078
868,715
Costs and expenses:
Restaurant operating costs (exclusive of
depreciation
and amortization shown separately
below):
Cost of sales
67,142
43,244
260,896
198,487
Labor
99,568
77,175
409,901
332,827
Other operating
51,727
39,883
207,829
164,468
Occupancy
22,251
23,007
96,484
99,521
Depreciation and amortization
19,454
19,504
83,438
87,557
General and administrative
17,778
16,439
75,442
72,493
Selling
15,666
7,900
47,301
34,329
Pre-opening costs and acquisition
costs
618
51
1,410
296
Other charges
6,846
15,587
16,074
153,883
Total costs and expenses
301,050
242,790
1,198,775
1,143,861
Loss from operations
(17,666
)
(41,740
)
(36,697
)
(275,146
)
Other expense:
Interest expense, net and other
3,471
777
13,457
8,406
Loss before income taxes
(21,137
)
(42,517
)
(50,154
)
(283,552
)
Income tax benefit
176
(3,187
)
(152
)
(7,484
)
Net loss
$
(21,313
)
$
(39,330
)
$
(50,002
)
$
(276,068
)
Loss per share:
Basic
$
(1.36
)
$
(2.53
)
$
(3.19
)
$
(19.29
)
Diluted
$
(1.36
)
$
(2.53
)
$
(3.19
)
$
(19.29
)
Weighted average shares outstanding:
Basic
15,715
15,540
15,660
14,314
Diluted
15,715
15,540
15,660
14,314
RED ROBIN GOURMET BURGERS,
INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share amounts)
(Unaudited)
December 26, 2021
December 27, 2020
Assets:
Current Assets:
Cash and cash equivalents
$
22,750
$
16,116
Accounts receivable, net
21,400
16,510
Inventories
25,219
23,802
Income tax receivable
15,824
16,662
Prepaid expenses and other current
assets
16,963
13,818
Total current assets
102,156
86,908
Property and equipment, net
386,336
427,033
Operating lease assets
400,825
415,929
Intangible assets, net
21,292
24,714
Other assets, net
18,389
20,155
Total assets
$
928,998
$
974,739
Liabilities and Stockholders'
Equity:
Current Liabilities:
Accounts payable
$
32,510
$
20,179
Accrued payroll and payroll related
liabilities
32,584
27,653
Unearned revenue
54,214
50,138
Current portion of operating lease
liabilities
48,842
54,197
Current portion of long-term debt
9,692
9,692
Accrued liabilities and other
45,458
40,695
Total current liabilities
223,300
202,554
Long-term debt
167,263
160,952
Long-term portion of operating lease
liabilities
435,136
454,296
Other non-current liabilities
26,325
36,224
Total liabilities
852,024
854,026
Stockholders' Equity:
Common stock; $0.001 par value: 45,000
shares authorized; 20,449 shares issued; 15,722 and 15,548 shares
outstanding as of December 26, 2021 and December 27, 2020
20
20
Preferred stock, $0.001 par value: 3,000
shares authorized; no shares issued and outstanding as of December
26, 2021 and December 27, 2020
—
—
Treasury stock 4,727 and 4,901 shares, at
cost as of December 26, 2021 and December 27, 2020
(192,803
)
(199,908
)
Paid-in capital
242,560
243,407
Accumulated other comprehensive income
(loss), net of tax
1
(4
)
Retained earnings
27,196
77,198
Total stockholders' equity
76,974
120,713
Total liabilities and stockholders'
equity
$
928,998
$
974,739
Schedule I
Reconciliation of Non-GAAP Results to GAAP
Results (In thousands, except per share data, unaudited)
In addition to the results provided in accordance with Generally
Accepted Accounting Principles ("GAAP") throughout this press
release, the Company has provided Adjusted net loss, Adjusted
(loss) earnings per share - basic, and Adjusted (loss) earnings per
share - diluted, which are non-GAAP measurements which present the
twelve and fifty-two weeks ended December 26, 2021 and December 27,
2020 Net loss and basic and diluted loss per share, excluding the
effects of goodwill impairment, asset impairment, litigation
contingencies, board and stockholder matters costs, restaurant
closure and refranchising costs, severance and executive transition
costs, executive retention costs, COVID-19 related costs, and
related income tax effects. The Company believes the presentation
of net loss and loss per share exclusive of the identified items
gives the reader additional insight into the ongoing operational
results of the Company. Management believes this supplemental
information will assist with comparisons of past and future
financial results against the present financial results presented
herein. Income tax effect of reconciling items was calculated based
on the change in the total tax provision calculation after
adjusting for the identified item. The non-GAAP measurements are
intended to supplement the presentation of the Company’s financial
results in accordance with GAAP.
Twelve Weeks Ended
Fifty-two Weeks Ended
December 26, 2021
December 27, 2020
December 26, 2021
December 27, 2020
Net loss as reported
$
(21,313
)
$
(39,330
)
$
(50,002
)
$
(276,068
)
Restaurant closure and refranchising
costs
975
6,856
6,276
19,846
Asset impairment
5,695
6,161
7,052
26,940
Litigation contingencies
—
1,940
1,330
6,440
COVID-19 related costs
176
579
1,288
1,858
Board and stockholder matter costs
—
51
128
2,504
Severance and executive transition
—
—
—
881
Goodwill impairment
—
—
—
95,414
Income tax effect
(1,780
)
(4,053
)
(4,179
)
(40,010
)
Adjusted net loss
$
(16,247
)
$
(27,796
)
$
(38,107
)
$
(162,195
)
Loss per share - basic:
Net loss as reported
$
(1.36
)
$
(2.53
)
$
(3.19
)
$
(19.29
)
Restaurant closure and refranchising
costs
0.06
0.44
0.40
1.39
Asset impairment
0.36
0.40
0.45
1.88
Litigation contingencies
—
0.12
0.08
0.45
COVID-19 related costs
0.01
0.04
0.08
0.13
Board and stockholder matter costs
—
—
0.01
0.17
Severance and executive transition
—
—
—
0.06
Goodwill impairment
—
—
—
6.67
Income tax effect
(0.10
)
(0.26
)
(0.26
)
(2.79
)
Adjusted loss earnings per share -
basic
$
(1.03
)
$
(1.79
)
$
(2.43
)
$
(11.33
)
Loss per share - diluted:
Net loss as reported
$
(1.36
)
$
(2.53
)
$
(3.19
)
$
(19.29
)
Restaurant closure and refranchising
costs
0.06
0.44
0.40
1.39
Asset impairment
0.36
0.40
0.45
1.88
Litigation contingencies
—
0.12
0.08
0.45
COVID-19 related costs
0.01
0.04
0.08
0.13
Board and stockholder matter costs
—
—
0.01
0.17
Severance and executive transition
—
—
—
0.06
Goodwill impairment
—
—
—
6.67
Income tax effect
(0.10
)
(0.26
)
(0.26
)
(2.79
)
Adjusted loss earnings per share -
diluted
$
(1.03
)
$
(1.79
)
$
(2.43
)
$
(11.33
)
Weighted average shares outstanding
Basic
15,715
15,540
15,660
14,314
Diluted
15,715
15,540
15,660
14,314
Schedule II
Reconciliation of Non-GAAP Restaurant-Level
Operating Profit to Restaurant revenues, Loss from Operations and
Net Loss (In thousands, unaudited)
The Company believes restaurant-level operating profit is an
important measure for management and investors because it is widely
regarded in the restaurant industry as a useful metric by which to
evaluate restaurant-level operating efficiency and performance. The
Company defines restaurant-level operating profit to be restaurant
revenue minus restaurant-level operating costs, excluding
restaurant impairment and closure costs. The measure includes
restaurant-level occupancy costs that include fixed rents,
percentage rents, common area maintenance charges, real estate and
personal property taxes, general liability insurance, and other
property costs, but excludes depreciation related to restaurant
equipment, buildings, and leasehold improvements. The measure
excludes depreciation and amortization expense, substantially all
of which is related to restaurant-level assets, because such
expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes
selling, general, and administrative costs, and therefore excludes
costs associated with selling, general, and administrative
functions, and pre-opening costs. The Company excludes restaurant
closure costs as they do not represent a component of the
efficiency of continuing operations. Restaurant impairment costs
are excluded, because, similar to depreciation and amortization,
they represent a non-cash charge for the Company's investment in
its restaurants and not a component of the efficiency of restaurant
operations. Restaurant-level operating profit is not a measurement
determined in accordance with GAAP and should not be considered in
isolation, or as an alternative, to loss from operations or net
loss as indicators of financial performance. Restaurant-level
operating profit as presented may not be comparable to other
similarly titled measures of other companies in the Company's
industry. The table below sets forth certain unaudited information
for the twelve and fifty-two weeks ended December 26, 2021, and
December 27, 2020 expressed as a percentage of total revenues,
except for the components of restaurant-level operating profit that
are expressed as a percentage of restaurant revenue.
Twelve Weeks Ended
Fifty-two Weeks Ended
December 26, 2021
December 27, 2020
December 26, 2021
December 27, 2020
Restaurant revenues
$
276,697
97.6
%
$
195,549
97.3
%
$
1,137,733
97.9
%
$
854,136
98.3
%
Restaurant operating costs(1):
Cost of sales
67,142
24.3
43,244
22.1
260,896
22.9
198,487
23.2
Labor
99,568
36.0
77,175
39.5
409,901
36.0
332,827
39.0
Other operating
51,727
18.7
39,883
20.4
207,829
18.3
164,468
19.3
Occupancy
22,251
8.0
23,007
11.8
96,484
8.5
99,521
11.7
Restaurant-level operating profit
36,009
13.0
%
12,240
6.2
%
162,623
14.3
%
58,833
6.8
%
Add – Franchise royalties, fees, and other
revenue
6,687
2.4
%
5,501
2.7
%
24,345
2.1
%
14,579
1.7
%
Deduct – other operating:
Depreciation and amortization
19,454
6.9
19,504
9.7
83,438
7.2
87,557
10.1
General and administrative expenses
17,778
6.3
16,439
8.2
75,442
6.5
72,493
8.3
Selling
15,666
5.5
7,900
3.9
47,301
4.1
34,329
4.0
Pre-opening & acquisition costs
618
0.2
51
—
1,410
0.1
296
—
Other charges
6,846
2.4
15,587
7.8
16,074
1.4
153,883
17.7
Total other operating
60,362
21.3
%
59,481
29.6
%
223,665
19.2
%
348,558
40.1
%
Loss from operations
(17,666
)
(6.2
)%
(41,740
)
(20.8
)%
(36,697
)
(3.2
)%
(275,146
)
(31.7
)%
Interest expense, net and other
3,471
1.2
777
0.4
13,457
1.2
8,406
1.0
Income tax benefit provision
176
0.1
(3,187
)
(1.6
)
(152
)
—
(7,484
)
(0.9
)
Total other
3,647
1.3
(2,410
)
(1.2
)
13,305
1.1
922
0.1
Net loss
$
(21,313
)
(7.5
)%
$
(39,330
)
(19.6
)%
$
(50,002
)
(4.3
)%
$
(276,068
)
(31.8
)%
________________________________________
(1)
Excluding depreciation and amortization,
which is shown separately.
Certain percentage amounts in the table
above do not total due to rounding as well as the fact that
components of restaurant-level operating profit are expressed as a
percentage of restaurant revenue and not total revenues.
Schedule III
Reconciliation of Net Loss to EBITDA and
Adjusted EBITDA (In thousands, unaudited)
The Company defines EBITDA as net loss before interest expense,
income taxes, and depreciation and amortization. EBITDA and
adjusted EBITDA are presented because the Company believes
investors' understanding of its performance is enhanced by
including these non-GAAP financial measures as a reasonable basis
for evaluating its ongoing results of operations excluding the
effects of goodwill impairment, asset impairment, litigation
contingencies, board and stockholder matters costs, restaurant
closure and refranchising costs, severance and executive transition
costs, executive retention costs and COVID-19 related costs. EBITDA
and adjusted EBITDA are supplemental measures of operating
performance that do not represent and should not be considered as
alternatives to net loss or cash flow from operations, as
determined by GAAP, and the Company's calculation thereof may not
be comparable to that reported by other companies in its industry
or otherwise. Adjusted EBITDA further adjusts EBITDA to reflect the
additions and eliminations shown in the table below. The use of
adjusted EBITDA as a performance measure permits a comparative
assessment of our operating performance relative to the Company's
performance based on its GAAP results, while isolating the effects
of some items that vary from period to period without any
correlation to core operating performance. Adjusted EBITDA as
presented may not be comparable to other similarly-titled measures
of other companies, and the Company's presentation of adjusted
EBITDA should not be construed as an inference that its future
results will be unaffected by excluded or unusual items. The
Company has not provided a reconciliation of its adjusted EBITDA
outlook to the most comparable GAAP measure of Net loss. Providing
Net loss guidance is potentially misleading and not practical given
the difficulty of projecting event-driven transactional and other
non-core operating items that are included in Net loss, including
asset impairments and income tax valuation adjustments. The
reconciliations of adjusted EBITDA to Net loss for the historical
periods presented below are indicative of the reconciliations that
will be prepared upon completion of the periods covered by the
non-GAAP guidance.
Twelve Weeks Ended
Fifty-two Weeks Ended
December 26, 2021
December 27, 2020
December 26, 2021
December 27, 2020
Net loss as reported
$
(21,313
)
$
(39,330
)
$
(50,002
)
$
(276,068
)
Interest expense, net
3,733
1,047
14,168
9,012
Income tax benefit
176
(3,187
)
(152
)
(7,484
)
Depreciation and amortization
19,454
19,504
83,438
87,557
EBITDA
$
2,050
$
(21,966
)
$
47,452
$
(186,983
)
Restaurant closure and refranchising
costs
$
975
$
6,856
$
6,276
$
19,846
Asset impairment
5,695
6,161
7,052
26,940
Litigation contingencies
—
1,940
1,330
6,440
COVID-19 related costs
176
579
1,288
1,858
Board and stockholder matter costs
—
51
128
2,504
Severance and executive transition
—
—
—
881
Goodwill impairment
—
—
—
95,414
Adjusted EBITDA
$
8,896
$
(6,379
)
$
63,526
$
(33,100
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220310005881/en/
For media relations questions contact: Danielle
Paleafico, Coyne PR (973) 588-2000
For investor relations questions contact: Raphael Gross,
ICR (203) 682-8253
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