Red Robin Gourmet Burgers, Inc., (NASDAQ:RRGB), a casual dining
restaurant chain serving an innovative selection of high-quality
gourmet burgers in a family-friendly atmosphere, today reported
financial results for the quarter and year ended December 27,
2015.
In addition, the Company announced that Denny Marie Post has
been promoted to President from Executive Vice President and Chief
Concept Officer. Further, Stuart Brown has been promoted to
Executive Vice President from Senior Vice President and will remain
as Chief Financial Officer.
Fiscal Year 2015 Financial Highlights
- Total revenues were $1.3 billion, an
increase of 9.7% over 2014
- Comparable restaurant revenue increased
2.1% over 2014
- Adjusted earnings per diluted share was
$3.32 compared to $2.66 in 2014, an increase of 24.8% (See Schedule
I)
Fourth Quarter 2015 Financial Highlights
- Total revenues were $286.3 million, an
increase of 1.5% over the same period a year ago
- Comparable restaurant revenue decreased
2.0% from the same period a year ago (using constant currency
rates)
- Restaurant-level operating profit, as a
percent of restaurant revenue, increased to 21.9% from 21.3% in the
fourth quarter of 2014 (see Schedule II)
- Net income increased to $11.7 million
from $3.9 million in the fourth quarter of 2014
- Adjusted EBITDA increased 12.4% to
$35.0 million from $31.1 million in the fourth quarter of 2014 (see
Schedule III)
- GAAP earnings per diluted share was
$0.84. Adjusted earnings per diluted share was $0.86, an
increase of 30.3% from the same period a year ago (See
Schedule I)
Net income for the fourth quarter ended December 27, 2015 was
$11.7 million compared to $3.9 million for the same period a year
ago. For the fiscal year ended December 27, 2015, net income was
$47.7 million, an increase of 46.5% compared to $32.6 million for
the fiscal year ended December 28, 2014. Earnings per diluted share
for fiscal year 2015 was $3.36 compared to $2.25 a year ago, an
increase of 49.3%.
Adjusted net income increased 28.2% to $12.0 million for the
fourth quarter ended December 27, 2015, from $9.4 million for the
same period a year ago. Earnings per diluted share on an adjusted
basis for the fourth quarter 2015 was $0.86 compared to $0.66 a
year ago, an increase of 30.3%. Adjusted net income for fiscal year
2015 increased 22.8% to $47.1 million from $38.4 million in fiscal
year 2014. Earnings per diluted share on an adjusted basis for
fiscal year 2015 was $3.32 compared to $2.66 a year ago, an
increase of 24.8%. See Schedule I for a reconciliation of adjusted
net income and adjusted earnings per share (each, a non-GAAP
financial measure) to net income and earnings per share,
respectively.
“Despite a challenging end to 2015, our comparable restaurant
revenue for the year increased 2.1%, marking our sixth consecutive
year of taking market share from peers. We believe our
outperformance is sustainable going forward due to our intense
guest focus along with our RED2 roadmap we laid out earlier this
year,” said Steve Carley, Red Robin Gourmet Burgers, Inc. chief
executive officer. “In 2016, we expect to complete our Brand
Transformation Initiative and have a strong lineup of craveable new
food and beverage offerings, both of which are critical in this
competitive environment and to setting pace for our success over
the next five years.”
Operating Results
Total Company revenues, which primarily include Company-owned
restaurant revenue and franchise royalties, increased 1.5% to
$286.3 million in the fourth quarter of 2015 from $282.1 million in
the fourth quarter of 2014. A $10.8 million increase in
revenue from new restaurant openings, net of closures, and a $0.4
million increase in franchise and other revenue were partially
offset by a $5.3 million, or 2.0% decrease in comparable restaurant
revenue and a $1.7 million unfavorable foreign exchange impact.
System-wide restaurant revenue (including franchised units) for
the fourth quarter of 2015 totaled $352.1 million, compared to
$348.0 million for the fourth quarter in 2014. System-wide
restaurant revenue for fiscal year 2015 totaled $1.6 billion,
compared to $1.5 billion in 2014 at constant currency rates.
Comparable revenue increased 2.1% in fiscal year 2015 compared
to 2014, driven by a 2.5% increase in average guest check and
offset by a 0.4% decrease in guest counts. Using constant currency
rates, comparable revenue decreased 2.0% in the fourth quarter of
2015 compared to the same period a year ago, driven by a 4.6%
decrease in guest counts offset by a 2.6% increase in average guest
check. Comparable restaurants are those Company-owned restaurants
that have operated five full quarters during the period presented,
and such restaurants are only included in the comparable metrics if
they are comparable for the entirety of both periods presented. The
Canadian restaurants were added to the comparable restaurant group
in the fourth quarter of 2015 and are not included in the 2015
fiscal year comparable restaurant group.
Restaurant-level operating profit margin (a non-GAAP financial
measure) was 21.9% in the fourth quarter of 2015 compared to 21.3%
in the same period a year ago, an improvement of 60 basis points.
The improved margin resulted from a 180 basis point decrease in
cost of sales, partially offset by an 80 basis point increase in
labor costs, a 30 basis point increase in occupancy costs and 10
basis points increase in other restaurant operating expenses.
Schedule II of this earnings release defines restaurant-level
operating profit, discusses why it is a useful metric for
investors, and reconciles this metric to income from operations and
net income.
Restaurant Revenue Performance
(1)
Q4 2015 Q4
2014 Average weekly sales per unit: Company-owned
– Total (2) $ 55,104 $ 56,652 Company-owned – Comparable (2) $
55,254 $ 56,364 Franchised units – Comparable $ 58,837 $ 58,891
Total operating weeks: Company-owned units 5,092 4,864 Franchised
units 1,188 1,181
___________________________________________
(1) Excludes Red Robin Burger Works® fast casual
restaurants, which had 120 and 85 operating weeks in the fourth
quarter of 2015 and 2014 (2) Calculated using constant currency
rates. Using historical currency rates, the average weekly sales
per unit in the fourth quarter of 2014 for Company-owned – Total
and Company-owned – Comparable was $57,002 and $56,726.
Other Results
Depreciation and amortization costs increased to $18.5 million
in the fourth quarter of 2015 from $16.4 million in the fourth
quarter of 2014. The increased depreciation was primarily related
to restaurants remodeled under the Brand Transformation Initiative
and new restaurants opened since the fourth quarter 2014, partially
offset by a change in estimated useful lives of certain assets.
General and administrative costs were $21.3 million, or 7.4% of
total revenues, in the fourth quarter of 2015, compared to $22.1
million, or 7.8% of revenues in the same period a year ago. The
decrease of $0.8 million resulted primarily from decreased
incentive-related compensation.
Selling expenses decreased to $8.0 million, or 2.8% of total
revenues, in the fourth quarter of 2015, compared to $9.5 million,
or 3.4% of total revenues in the prior year.
Pre-opening costs, including acquisition-related costs, were
$2.4 million in the fourth quarter of 2015, compared to $1.2
million in the same period a year ago. The increase in restaurant
pre-opening costs was due to the timing of restaurant openings in
2015, as 11 of our 24 restaurant openings in fiscal year 2015
occurred during the fourth quarter.
In the fourth quarter of 2015, the Company determined that two
Company-owned restaurants were impaired, recognizing a non-cash
pre-tax impairment charge of $0.6 million.
The Company's fiscal year 2015 effective tax rate was 24.6%,
compared to a 22.2% effective tax rate in fiscal year 2014.
Restaurant Development
As of the end of the fourth quarter of 2015, there were 429
Company-owned Red Robin® restaurants, ten Red Robin Burger Works®
and 99 franchised Red Robin restaurants, for a total of 538
restaurants. During the fourth quarter, the Company opened 11
full-size Red Robin restaurants, bringing the total restaurant
openings for the year to 24.
Under the Brand Transformation Initiative, the Company completed
157 restaurant remodels during fiscal year 2015. The Company has
over 325 restaurants conforming to its new brand standards as of
the end of fiscal year 2015, including new restaurant openings.
Balance Sheet and Liquidity
As of December 27, 2015, the Company had cash and cash
equivalents of $22.7 million and total debt of $210.8 million,
including $8.0 million of capital lease liabilities. The Company
increased debt by $63.0 million since the beginning of fiscal year
2015.
Cash generated from operations in 2015 totaled $140.9 million
compared to $123.6 million in 2014. Capital investments in 2015
totaled $168.8 million, compared to $155.2 million in the prior
year.
During the fourth quarter of 2015, the Company purchased 419,481
shares of the Company’s common stock for $29.4 million. In 2015,
the Company purchased a total of 556,049 shares of the Company’s
common stock for $40.0 million. As of December 27, 2015, there
was approximately $10.0 million remaining under the current board
authorization for stock repurchases.
On February 11, 2016, the Company’s board of directors
re-authorized the Company’s share repurchase program, and approved
the repurchase of up to a total of $100 million of the Company’s
common stock. The share repurchase authorization was effective as
of February 11, 2016, and will terminate upon completing
repurchases of $100 million of common stock unless otherwise
terminated by the board. Pursuant to the repurchase program,
purchases may be made from time to time at the Company’s discretion
and the Company is not obligated to acquire any particular amount
of common stock.
Outlook for 2016
Red Robin’s 2016 fiscal year consists of 52 weeks and will end
on December 25, 2016 (“2016”).
The Company expects total revenues to grow between 8.5% and 9.5%
in 2016, comprised of comparable revenue growth in the low single
digits and the remainder due to increased operating weeks
associated with locations opened in 2015 and 2016. The Company
plans to open approximately 25 new Red Robins and five Burger Works
in 2016.
Earnings before interest taxes and depreciation (EBITDA) is
expected to range between $155 million and $165 million in 2016.
EBITDA is a non-GAAP number and defined in Schedule III.
Depreciation and amortization is projected to be between $82
million and $84 million in 2016 while interest expense is expected
to be approximately $5 million. The 2016 annual tax rate is
projected to be approximately 25.5%.
The Company expects capital investments to range between $150
million and $155 million. In addition to new restaurant openings,
the Company expects to remodel around 70 locations as part of its
Brand Transformation Initiative.
The sensitivity of the Company’s earnings per diluted share to a
1% change in guest counts for fiscal year 2016 is estimated to be
$0.34 on an annualized basis. Additionally, a 10 basis point change
in restaurant-level operating profit margin is expected to impact
earnings per diluted share by approximately $0.09, and a change of
approximately $143,000 in pre-tax income or expense is equivalent
to approximately $0.01 per diluted share.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its
fourth quarter 2015 results today at 10:00 a.m. ET. The conference
call number is (800) 750-4984, or for international callers (913)
312-0860. The financial information that the Company intends to
discuss during the conference call is included in this press
release and will be available on the “Investors” link of the
Company’s website at www.redrobin.com. Prior to the conference
call, the Company will post supplemental financial information that
will be discussed during the call and live webcast.
To access the supplemental financial information and webcast,
please visit www.redrobin.com and select the “Investors” link from
the menu. A replay of the live conference call will be available
from two hours after the call until midnight on Friday, February
19, 2016. The replay can be accessed by dialing (877) 870-5176, or
(858) 384-5517 for international callers. The conference ID is
9549831.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), 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, is the Gourmet
Burger Authority™, famous for serving more than two dozen
craveable, high-quality burgers with Bottomless Steak
Fries® in a fun environment welcoming to guests of all
ages. Whether a family dining with kids, adults grabbing a
drink at the bar, or teens enjoying a meal, Red Robin offers an
unparalleled experience for its guests. In addition to its
many burger offerings, Red Robin serves a wide variety of salads,
soups, appetizers, entrees, desserts and signature
beverages. Red Robin offers a variety of options behind the
bar, including its extensive selection of local and regional beers,
and innovative adult beer shakes and cocktails, earning the
restaurant a VIBE Vista Award for Best Beer Program in a
Multi-Unit Chain Restaurant. There are more than 530 Red Robin
restaurants across the United States and Canada, including Red
Robin Burger Works® locations and those operating under
franchise agreements. Red Robin… YUMMM®! Connect with Red Robin on
Facebook, Instagram, and Twitter.
Forward-Looking Statements
Forward-looking statements in this press release regarding our
strategic initiatives, future performance, revenues, EBITDA,
capital investments, anticipated number and timing of new
restaurant openings (including Red Robin Burger Works) and
operating weeks, the anticipated number and timing of restaurant
remodels under the Brand Transformation Initiative, anticipated
costs, expenses including depreciation, amortization, and interest
expense, tax rate, sensitivity of earnings per share and other
projected financial measures, statements under the heading “Outlook
for 2016” 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,” “will” or “estimate,” or
the negative or other variations thereof or comparable terminology
are intended to identify forward-looking statements. We undertake
no obligation to update such statements to reflect events or
circumstances arising after such date, and we caution 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 effectiveness of our business
improvement initiatives, effectiveness of our marketing strategies
and initiatives to achieve restaurant sales growth; the ability to
fulfill planned expansion and restaurant remodeling; the cost and
availability of key food products, labor, and energy; our ability
to achieve anticipated revenue and cost savings from our
anticipated new technology systems and tools in the restaurants and
other initiatives; availability of capital or credit facility
borrowings; our ability to increase our to-go and other offerings;
the adequacy of cash flows or available debt resources to fund
operations and growth opportunities; federal, state, and local
regulation of our business; 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.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
data)
(Unaudited)
Twelve Weeks Ended Fifty-two
Weeks Ended
December 27,
2015
December 28,
2014
December 27,
2015
December 28,
2014
Revenues: Restaurant revenue $ 282,189 $ 278,439 $ 1,238,898 $
1,129,135 Franchise royalties, fees and other revenue 4,111 3,670
18,694 16,967 Total revenues 286,300 282,109 1,257,592 1,146,102
Costs and expenses:
Restaurant operating costs (exclusive of
depreciation and amortization shown separately below):
Cost of sales 66,825 71,071 304,637 287,221 Labor 93,551 90,246
403,517 372,657 Other operating 36,260 35,229 154,344 140,972
Occupancy 23,846 22,612 100,007 86,734 Depreciation and
amortization 18,493 16,364 77,374 64,579 General and administrative
21,257 22,103 103,005 94,751 Selling 8,027 9,481 40,074 37,407
Pre-opening costs and acquisition costs 2,445 1,220 7,008 8,264
Asset impairment charge 581 8,833 581 8,833 Total costs and
expenses 271,285 277,159 1,190,547 1,101,418 Income from
operations 15,015 4,950 67,045 44,684 Other expense:
Interest expense, net and other 747 690 3,809 2,825 Income
before income taxes 14,268 4,260 63,236 41,859 Provision for income
taxes 2,577 321 15,532 9,298 Net income $ 11,691 $ 3,939 $ 47,704 $
32,561 Earnings per share: Basic $ 0.85 $ 0.28 $ 3.40 $ 2.29
Diluted $ 0.84 $ 0.28 $ 3.36 $ 2.25 Weighted average shares
outstanding: Basic 13,798 14,028 14,042 14,237 Diluted 13,952
14,215 14,216 14,447
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per share
amounts)
(Unaudited)
December 27,
2015
December 28,
2014
Assets: Current Assets: Cash and cash equivalents $ 22,705 $
22,408 Accounts receivable, net 27,760 23,740 Inventories 28,223
25,947 Prepaid expenses and other current assets 18,052 23,160
Deferred tax asset and other — 4,677 Total current
assets 96,740 99,932 Property and equipment,
net 603,686 496,262 Goodwill 81,957 84,115 Intangible assets, net
39,573 42,479 Other assets, net 18,023 13,101 Total
assets $ 839,979 $ 735,889
Liabilities and
Stockholders’ Equity: Current Liabilities: Trade accounts
payable $ 23,392 $ 28,522 Construction related payables 28,692
15,652 Accrued payroll and payroll related liabilities 47,587
47,362 Unearned revenue 48,392 45,049 Accrued liabilities and other
29,610 27,084 Total current liabilities 177,673
163,669 Deferred rent 66,470 57,341 Long-term
debt 202,875 139,375 Long-term portion of capital lease obligations
7,441 7,938 Other non-current liabilities 11,209 7,795
Total liabilities 465,668 376,118
Stockholders’ Equity:
Common stock; $0.001 par value: 45,000
shares authorized; 17,851 and17,851 shares issued; 13,628 and
14,043 shares outstanding
18 18
Preferred stock, $0.001 par value: 3,000
shares authorized; no sharesissued and outstanding
— — Treasury stock 4,223 and 3,808 shares, at cost (167,339 )
(132,252 ) Paid-in capital 205,995 200,617 Accumulated other loss,
net of tax (5,379 ) (1,924 ) Retained earnings 341,016
293,312 Total stockholders’ equity 374,311 359,771
Total liabilities and stockholders’ equity $ 839,979
$ 735,889
Schedule I
Reconciliation of Non-GAAP Results to
GAAP Results
(In thousands, except per share
data)
In addition to the results provided in accordance with
Generally Accepted Accounting Principles (“GAAP”) throughout this
press release, the Company has provided non-GAAP measurements which
present the 12 and 52 weeks ended December 27, 2015 and the 12 and
52 weeks ended December 28, 2014, net income and basic and diluted
earnings per share, excluding the effects of a change in accounting
estimate for gift card breakage. The Company believes that the
presentation of net income and earnings per share exclusive of the
identified item gives the reader additional insight into the
ongoing operational results of the Company. This supplemental
information will assist with comparisons of past and future
financial results against the present financial results presented
herein. Income tax expense related to the change in accounting
estimate 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 27,
2015
December 28,
2014
December 27,
2015
December 28,
2014
Net income as reported $ 11,691 $ 3,939 $ 47,704 $ 32,561 Asset
impairment charge 581 8,833 581 8,833 Change in estimate for gift
card breakage — — (1,369 ) — Executive transition costs — — — 544
Income tax benefit (expense) (227 ) (3,379 ) 212 (3,562 )
Adjusted net income $ 12,045 $ 9,393 $ 47,128
$ 38,376 Basic net income per share: Net income as
reported $ 0.85 $ 0.28 $ 3.40 $ 2.29 Asset impairment charge 0.04
0.63 0.04 0.62 Change in estimate for gift card breakage — — (0.10
) — Executive transition costs — — — 0.04 Income tax benefit
(expense) (0.02 ) (0.24 ) 0.02 (0.25 ) Adjusted earnings per
share - basic $ 0.87 $ 0.67 $ 3.36 $ 2.70
Diluted net income per share: Net income as reported
$ 0.84 $ 0.28 $ 3.36 $ 2.25 Asset impairment charge 0.04 0.62 0.04
0.62 Change in estimate for gift card breakage — — (0.09 ) —
Executive transition costs — — — 0.04 Income tax benefit (expense)
(0.02 ) (0.24 ) 0.01 (0.25 ) Adjusted earnings per share -
diluted $ 0.86 $ 0.66 $ 3.32 $ 2.66
Weighted average shares outstanding Basic 13,798 14,028
14,042 14,237 Diluted 13,952 14,215 14,216 14,447
Schedule II
Reconciliation of Non-GAAP
Restaurant-Level Operating Profit to Income
from Operations and Net Income
(In thousands)
The Company believes that 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 closures and impairment costs. The measure
includes restaurant- level occupancy costs, which 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 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
occupancy 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 generally accepted
accounting principles (“GAAP”) and should not be considered in
isolation, or as an alternative, to income from operations or net
income as indicators of financial performance. Restaurant-level
operating profit as presented may not be comparable to other
similarly titled measures of other companies. The table below sets
forth certain unaudited information for the 12 and 52 weeks ended
December 27, 2015 and the 12 and 52 weeks ended December 28, 2014,
expressed as a percentage of total revenues, except for the
components of restaurant-level operating profit, which are
expressed as a percentage of restaurant revenue.
Twelve Weeks Ended Fifty-two Weeks
Ended December 27, 2015 December 28,
2014 December 27, 2015
December 28, 2014
Restaurant revenues $ 282,189 98.6 % $ 278,439 98.7 %
$ 1,238,898 98.5 % $ 1,129,135 98.5 %
Restaurant operating costs (exclusiveof
depreciation and amortizationshown separately below):
Cost of sales 66,825 23.7 % 71,071 25.5 % 304,637 24.6 % 287,221
25.4 % Labor 93,551 33.2 % 90,246 32.4 % 403,517 32.6 % 372,657
33.0 % Other operating 36,260 12.8 % 35,229 12.7 % 154,344 12.4 %
140,972 12.5 % Occupancy 23,846 8.4 % 22,612 8.1 %
100,007 8.1 % 86,734 7.7 % Restaurant-level operating
profit 61,707 21.9 % 59,281 21.3 % 276,393
22.3 % 241,551 21.4 % Add – Franchise royalties, fees
and other revenue 4,111 1.4 % 3,670 1.3 % 18,694 1.5 % 16,967 1.5 %
Deduct – other operating: Depreciation and amortization 18,493 6.5
% 16,364 5.8 % 77,374 6.2 % 64,579 5.6 % General and administrative
expenses 21,257 7.4 % 22,103 7.8 % 103,005 8.2 % 94,751 8.3 %
Selling 8,027 2.8 % 9,481 3.4 % 40,074 3.2 % 37,407 3.3 %
Pre-opening & acquisition costs 2,445 0.9 % 1,220 0.4 % 7,008
0.6 % 8,264 0.7 % Asset impairment charge 581 0.2 % 8,833
3.1 % 581 0.0 % 8,833 0.8 % Total other
operating 50,803 17.8 % 58,001 20.5 % 228,042
18.2 % 213,834 18.7 % Income from operations 15,015
5.2 % 4,950 1.8 % 67,045 5.3 % 44,684 3.9 % Interest
expense, net and other 747 0.2 % 690 0.3 % 3,809 0.3 % 2,825 0.2 %
Income tax expense 2,577 0.9 % 321 0.1 % 15,532
1.2 % 9,298 0.8 % Total other 3,324 1.1 %
1,011 0.4 % 19,341 1.5 % 12,123 1.1 %
Net income $ 11,691 4.1 % $ 3,939 1.4 % 47,704
3.8 % 32,561 2.8 %
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 Income to EBITDA
and Adjusted EBITDA
(In thousands, unaudited)
The Company defines EBITDA as net income before interest
expense, provision for income taxes, depreciation and amortization,
and non-cash stock based compensation. EBITDA and adjusted EBITDA
are presented because the Company believes that investors'
understanding of our performance is enhanced by including these
non-GAAP financial measures as a reasonable basis for evaluating
our ongoing results of operations without the effect of non-cash
charges such as depreciation and amortization expenses and asset
disposals, stock-based compensation, closure costs and asset
impairment charges. EBITDA and adjusted EBITDA are supplemental
measures of operating performance that do not represent and should
not be considered as alternatives to net income or cash flow from
operations, as determined by GAAP, and our calculation thereof may
not be comparable to that reported by other companies. 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 our performance based on our 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 our
presentation of adjusted EBITDA should not be construed as an
inference that our future results will be unaffected by excluded or
unusual items.
Twelve Weeks Ended
Fifty-two Weeks Ended
December 27,
2015
December 28,
2014
December 27,
2015
December 28,
2014
Net income as reported $ 11,691 $ 3,939 $ 47,704 $ 32,561 Interest
expense, net 959 720 3,629 2,955 Provision for income taxes 2,577
321 15,532 9,298 Depreciation and amortization 18,493 16,364 77,374
64,579 Non-cash stock based compensation 681 959 4,724 4,167
EBITDA 34,401 22,303 148,963 113,560 Asset impairment
charge 581 8,833 581 8,833 Change in estimate for gift card
breakage — — (1,369 ) — Executive transition — — — 544
Adjusted EBITDA $ 34,982 $ 31,136 $ 148,175 $ 122,937
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For media relations questions contact:Jennifer DeNick,
Coyne PR(973) 588-2000orFor investor relations questions
contact:Stuart Brown, Chief Financial Officer(303) 846-6000
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