Delaware | 001-35625 | 20-8023465 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number | Description | ||
99.1 | Press Release of Bloomin’ Brands, Inc. dated April 26, 2016 |
BLOOMIN’ BRANDS, INC. | |||
(Registrant) | |||
Date: | April 26, 2016 | By: | /s/ David J. Deno |
David J. Deno | |||
Executive Vice President and Chief Financial and Administrative Officer (Principal Financial and Accounting Officer) |
![]() | NEWS | Exhibit 99.1 | ||
Chris Meyer | ||||
Group Vice President, IR & Finance | ||||
(813) 830-5311 |
• | The Company repurchased approximately 4.4 million shares of common stock for a total of $75.0 million; |
• | Comparable sales for Company-owned U.S. concepts declined 1.5%; |
• | Comparable sales for Outback Steakhouse in Brazil increased 8.8%; and |
• | Added eight new restaurants, including six in international markets |
Q1 | |||||||||||
2016 | 2015 | CHANGE | |||||||||
Adjusted diluted earnings per share | $ | 0.47 | $ | 0.54 | $ | (0.07 | ) | ||||
Adjustments | (0.18 | ) | (0.07 | ) | (0.11 | ) | |||||
Diluted earnings per share | $ | 0.29 | $ | 0.47 | $ | (0.18 | ) | ||||
(dollars in millions) | Q1 2016 | Q1 2015 | % Change | |||||||
Total revenues | $ | 1,164.2 | $ | 1,202.1 | (3.2 | )% | ||||
Adjusted restaurant-level operating margin | 17.7 | % | 18.3 | % | (0.6 | )% | ||||
U.S. GAAP restaurant-level operating margin | 17.8 | % | 18.4 | % | (0.6 | )% | ||||
Adjusted operating income margin | 7.9 | % | 9.1 | % | (1.2 | )% | ||||
U.S. GAAP operating income margin | 7.4 | % | 8.1 | % | (0.7 | )% |
• | The decrease in Total revenues was primarily due to the effect of foreign currency translation and lower comparable restaurant sales, partially offset by the net benefit of new restaurant openings and closings. |
• | The decreases in Adjusted and U.S. GAAP restaurant-level operating margin were primarily due to wage inflation and unfavorable product mix. These decreases were partially offset by productivity savings and menu pricing. |
• | The decrease in Adjusted operating income margin was due to lower restaurant-level operating margin as described above and higher expense associated with the timing of the Company’s annual managing partner conference, partially offset by lower deferred compensation expenses and a reduction in professional fees. |
• | The differences between Adjusted and U.S. GAAP operating income margin were primarily due to restaurant closing costs related to our Bonefish Restructuring in 2016 and our International Restaurant Closure Initiative in 2015. |
THIRTEEN WEEKS ENDED MARCH 27, 2016 | COMPANY-OWNED | ||
Comparable restaurant sales (stores open 18 months or more) (1) (2): | |||
U.S. | |||
Outback Steakhouse | (1.3 | )% | |
Carrabba’s Italian Grill | (2.0 | )% | |
Bonefish Grill | (2.7 | )% | |
Fleming’s Prime Steakhouse & Wine Bar | 1.3 | % | |
Combined U.S. | (1.5 | )% | |
International | |||
Outback Steakhouse - Brazil | 8.8 | % | |
Outback Steakhouse - South Korea | (5.6 | )% |
(1) | Comparable restaurant sales exclude the effect of fluctuations in foreign currency rates. |
(2) | Relocated international restaurants closed more than 30 days and relocated U.S. restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening. |
(dollars in millions) | Q1 2016 | Q1 2015 | % Change | |||||||
U.S. | ||||||||||
Total revenues | $ | 1,043.8 | $ | 1,062.0 | (1.7 | )% | ||||
Adjusted restaurant-level operating margin (1) | 17.1 | % | 18.0 | % | (0.9 | )% | ||||
U.S. GAAP restaurant-level operating margin (1) | 17.3 | % | 18.0 | % | (0.7 | )% | ||||
Adjusted operating income margin (1) | 11.6 | % | 12.3 | % | (0.7 | )% | ||||
U.S. GAAP operating income margin (1) | 11.3 | % | 12.1 | % | (0.8 | )% |
(1) | During the first quarter of 2016, we recast our segment reporting. See the “Segment Recast” discussion below for additional details. |
• | The decrease in Total revenues was primarily due to lower comparable restaurant sales. |
• | The decreases in Adjusted and U.S. GAAP restaurant-level operating margin were primarily due to wage inflation and unfavorable product mix. These increases were partially offset by productivity savings and menu pricing. |
• | The decrease in Adjusted operating income margin was due to lower restaurant-level operating margin as described above partially offset by lower deferred compensation expenses and a reduction in professional fees. |
• | The differences between Adjusted and U.S. GAAP operating income margin were primarily due to restaurant closing costs related to our Bonefish Restructuring in 2016 and our Domestic Restaurant Closure Initiative in 2015. |
(dollars in millions) | Q1 2016 | Q1 2015 | % Change | |||||||
International | ||||||||||
Total revenues | $ | 120.4 | $ | 140.0 | (14.0 | )% | ||||
Adjusted restaurant-level operating margin | 19.5 | % | 21.7 | % | (2.2 | )% | ||||
U.S. GAAP restaurant-level operating margin | 19.5 | % | 21.7 | % | (2.2 | )% | ||||
Adjusted operating income margin | 9.8 | % | 12.6 | % | (2.8 | )% | ||||
U.S. GAAP operating income margin | 9.4 | % | 6.3 | % | 3.1 | % |
• | The decrease in Total revenues is primarily due to $36.3 million of foreign currency translation, partially offset by new restaurant openings and higher comparable restaurant sales. |
• | The decreases in Adjusted and U.S. GAAP restaurant-level operating margin were primarily due to higher commodity inflation, wage inflation and advertising expense partially offset by menu pricing, productivity savings and higher average unit volumes. |
• | The decrease in Adjusted operating income margin was primarily due to the change in restaurant-level operating margin and higher depreciation and amortization expense. |
• | The increase in U.S. GAAP operating income margin was driven by the lapping of expenses related to our International Restaurant Closure Initiative. |
• | Foreign currency translation negatively impacted adjusted operating income by $4.2 million. |
DECEMBER 27, 2015 | OPENINGS | CLOSURES | MARCH 27, 2016 | ||||||||
U.S.: | |||||||||||
Outback Steakhouse—Company-owned | 650 | — | (1 | ) | 649 | ||||||
Bonefish Grill—Company-owned | 210 | 1 | (6 | ) | 205 | ||||||
Bonefish Grill—Franchised | 5 | 1 | — | 6 | |||||||
International: | |||||||||||
Company-owned | |||||||||||
Outback Steakhouse—Brazil | 75 | 2 | (1 | ) | 76 | ||||||
Outback Steakhouse—South Korea | 75 | 2 | (3 | ) | 74 | ||||||
Other | 16 | 1 | — | 17 | |||||||
Franchised | 58 | 1 | (2 | ) | 57 | ||||||
System-wide development | 8 | (13 | ) |
TABLE ONE | |||||||
BLOOMIN’ BRANDS, INC. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||
(UNAUDITED) | |||||||
THIRTEEN WEEKS ENDED | |||||||
(dollars in thousands, except per share data) | MARCH 27, 2016 | MARCH 29, 2015 | |||||
Revenues | |||||||
Restaurant sales | $ | 1,158,052 | $ | 1,194,810 | |||
Other revenues | 6,136 | 7,249 | |||||
Total revenues | 1,164,188 | 1,202,059 | |||||
Costs and expenses | |||||||
Cost of sales | 375,288 | 387,468 | |||||
Labor and other related | 322,805 | 323,986 | |||||
Other restaurant operating | 253,571 | 264,038 | |||||
Depreciation and amortization | 47,651 | 46,486 | |||||
General and administrative | 75,025 | 73,247 | |||||
Provision for impaired assets and restaurant closings | 3,164 | 9,133 | |||||
Total costs and expenses | 1,077,504 | 1,104,358 | |||||
Income from operations | 86,684 | 97,701 | |||||
Loss on defeasance, extinguishment and modification of debt | (26,580 | ) | — | ||||
Other expense, net | (19 | ) | (1,147 | ) | |||
Interest expense, net | (12,875 | ) | (13,198 | ) | |||
Income before provision for income taxes | 47,210 | 83,356 | |||||
Provision for income taxes | 11,327 | 21,274 | |||||
Net income | 35,883 | 62,082 | |||||
Less: net income attributable to noncontrolling interests | 1,408 | 1,494 | |||||
Net income attributable to Bloomin’ Brands | $ | 34,475 | $ | 60,588 | |||
Net income | $ | 35,883 | $ | 62,082 | |||
Other comprehensive income: | |||||||
Foreign currency translation adjustment | (7,285 | ) | (25,462 | ) | |||
Unrealized losses on derivatives, net of tax | (2,735 | ) | (4,012 | ) | |||
Reclassification of adjustment for loss on derivatives included in net income, net of tax | 988 | — | |||||
Comprehensive income | 26,851 | 32,608 | |||||
Less: comprehensive income attributable to noncontrolling interests | 2,106 | 1,494 | |||||
Comprehensive income attributable to Bloomin’ Brands | $ | 24,745 | $ | 31,114 | |||
Earnings per share: | |||||||
Basic | $ | 0.29 | $ | 0.48 | |||
Diluted | $ | 0.29 | $ | 0.47 | |||
Weighted average common shares outstanding: | |||||||
Basic | 117,930 | 125,302 | |||||
Diluted | 120,776 | 128,759 | |||||
Cash dividends declared per common share | $ | 0.07 | $ | 0.06 |
TABLE TWO | |||||||
BLOOMIN’ BRANDS, INC. | |||||||
SEGMENT RESULTS | |||||||
(UNAUDITED) | |||||||
(dollars in thousands) | THIRTEEN WEEKS ENDED | ||||||
U.S. Segment | MARCH 27, 2016 | MARCH 29, 2015 | |||||
Revenues | |||||||
Restaurant sales | $ | 1,038,749 | $ | 1,056,104 | |||
Other revenues | 5,030 | 5,910 | |||||
Total revenues | $ | 1,043,779 | $ | 1,062,014 | |||
Restaurant-level operating margin (1) | 17.3 | % | 18.0 | % | |||
Income from operations (1) | $ | 117,839 | $ | 128,268 | |||
Operating income margin (1) | 11.3 | % | 12.1 | % | |||
International Segment | |||||||
Revenues | |||||||
Restaurant sales | $ | 119,303 | $ | 138,706 | |||
Other revenues | 1,106 | 1,339 | |||||
Total revenues | $ | 120,409 | $ | 140,045 | |||
Restaurant-level operating margin | 19.5 | % | 21.7 | % | |||
Income from operations | $ | 11,349 | $ | 8,879 | |||
Operating income margin | 9.4 | % | 6.3 | % | |||
Reconciliation of Segment Income from Operations to Consolidated Income from Operations | |||||||
Segment income from operations | |||||||
U.S. (1) | $ | 117,839 | $ | 128,268 | |||
International | 11,349 | 8,879 | |||||
Total segment income from operations | 129,188 | 137,147 | |||||
Unallocated corporate operating expense (1) | (42,504 | ) | (39,446 | ) | |||
Total income from operations | $ | 86,684 | $ | 97,701 |
(1) | During the first quarter of 2016, we recast our segment reporting. See the “Segment Recast” discussion above for additional details. |
TABLE THREE | |||||||
BLOOMIN’ BRANDS, INC. | |||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | |||||||
(UNAUDITED) | |||||||
(dollars in thousands) | MARCH 27, 2016 | DECEMBER 27, 2015 | |||||
Cash and cash equivalents (1) | $ | 128,834 | $ | 132,337 | |||
Net working capital (deficit) (2) | $ | (502,428 | ) | $ | (395,522 | ) | |
Total assets | $ | 2,885,454 | $ | 3,032,569 | |||
Total debt, net | $ | 1,325,762 | $ | 1,316,864 | |||
Total stockholders’ equity | $ | 367,202 | $ | 421,900 |
(1) | Excludes restricted cash. |
(2) | The Company has, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). The Company operates successfully with negative working capital because cash collected on Restaurant sales is typically received before payment is due on its current liabilities and its inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are 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 | |||||||||||||
MARCH 27, 2016 | MARCH 29, 2015 | |||||||||||||
U.S. GAAP | ADJUSTED (1) | U.S. GAAP | ADJUSTED (2) | QUARTER TO DATE | ||||||||||
Restaurant sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 32.4 | % | 32.4 | % | 32.4 | % | 32.4 | % | — | % | ||||
Labor and other related | 27.9 | % | 27.9 | % | 27.1 | % | 27.1 | % | (0.8 | )% | ||||
Other restaurant operating | 21.9 | % | 22.1 | % | 22.1 | % | 22.1 | % | — | % | ||||
Restaurant-level operating margin | 17.8 | % | 17.7 | % | 18.4 | % | 18.3 | % | (0.6 | )% |
(1) | Includes adjustments primarily for the write-off of $1.9 million of deferred rent liabilities associated with the Bonefish Restructuring recorded in Other restaurant operating. |
(2) | Includes adjustments of $0.2 million of expenses from the International Restaurant Closure Initiative, partially offset by $0.1 million of non-cash intangible amortization recorded as a result of the acquisition of our Brazil operations. All adjustments were recorded in Other restaurant operating. |
TABLE FIVE | ||||||||||||||
BLOOMIN’ BRANDS, INC. | ||||||||||||||
SEGMENT RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION | ||||||||||||||
(UNAUDITED) | ||||||||||||||
THIRTEEN WEEKS ENDED | (UNFAVORABLE) FAVORABLE CHANGE IN ADJUSTED | |||||||||||||
MARCH 27, 2016 | MARCH 29, 2015 | |||||||||||||
Restaurant-level operating margin: | U.S. GAAP | ADJUSTED | U.S. GAAP | ADJUSTED | QUARTER TO DATE | |||||||||
U.S. (1)(2) | 17.3 | % | 17.1 | % | 18.0 | % | 18.0 | % | (0.9 | )% | ||||
International (3) | 19.5 | % | 19.5 | % | 21.7 | % | 21.7 | % | (2.2 | )% |
(1) | During the first quarter of 2016, we recast our segment reporting. See the “Segment Recast” discussion above for additional details. |
(2) | Includes adjustments primarily for the write-off of $1.9 million of deferred rent liabilities associated with the Bonefish Restructuring for the thirteen weeks ended March 27, 2016. |
(3) | Includes adjustments of $0.2 million of expenses from the International Restaurant Closure Initiative, partially offset by $0.1 million of non-cash intangible amortization recorded as a result of the acquisition of our Brazil operations for the thirteen weeks ended March 29, 2015. |
TABLE SIX | |||||||
BLOOMIN’ BRANDS, INC. | |||||||
INCOME FROM OPERATIONS, NET INCOME AND DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATION | |||||||
(UNAUDITED) | |||||||
THIRTEEN WEEKS ENDED | |||||||
(in thousands, except per share data) | MARCH 27, 2016 | MARCH 29, 2015 | |||||
Income from operations | $ | 86,684 | $ | 97,701 | |||
Operating income margin | 7.4 | % | 8.1 | % | |||
Adjustments: | |||||||
Restaurant impairments and closing costs (1) | 2,131 | 8,870 | |||||
Purchased intangibles amortization (2) | 860 | 1,283 | |||||
Restaurant relocations, remodels and related costs (3) | 640 | 1,169 | |||||
Transaction-related expenses (4) | 572 | 275 | |||||
Severance (5) | 1,135 | — | |||||
Total income from operations adjustments | 5,338 | 11,597 | |||||
Adjusted income from operations | $ | 92,022 | $ | 109,298 | |||
Adjusted operating income margin | 7.9 | % | 9.1 | % | |||
Net income attributable to Bloomin’ Brands | $ | 34,475 | $ | 60,588 | |||
Adjustments: | |||||||
Income from operations adjustments | 5,338 | 11,597 | |||||
Loss on defeasance, extinguishment and modification of debt (6) | 26,580 | — | |||||
Loss on disposal of business and disposal of assets (7) | — | 1,151 | |||||
Total adjustments, before income taxes | 31,918 | 12,748 | |||||
Adjustment to provision for income taxes (8) | (9,702 | ) | (3,627 | ) | |||
Net adjustments | 22,216 | 9,121 | |||||
Adjusted net income | $ | 56,691 | $ | 69,709 | |||
Diluted earnings per share | $ | 0.29 | $ | 0.47 | |||
Adjusted diluted earnings per share | $ | 0.47 | $ | 0.54 | |||
Diluted weighted average common shares outstanding | 120,776 | 128,759 |
(1) | Represents expenses incurred for the Bonefish Restructuring and the International and Domestic Restaurant Closure Initiatives. |
(2) | Represents non-cash intangible amortization recorded as a result of the acquisition of our Brazil operations. |
(3) | Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation and remodel programs. |
(4) | Relates primarily to the following: (i) costs incurred with our sale-leaseback initiative in 2016 and (ii) costs incurred with the secondary offering of our common stock in March 2015. |
(5) | Relates to severance expense incurred as a result of an organizational realignment. |
(6) | Relates to the defeasance of the 2012 CMBS loan in 2016. |
(7) | Primarily represents loss on the sale of our Roy’s business in 2015. |
(8) | Represents income tax effect of the adjustments for the thirteen weeks ended March 27, 2016 and March 29, 2015. |
THIRTEEN WEEKS ENDED | |||||||
(dollars in thousands) | MARCH 27, 2016 | MARCH 29, 2015 | |||||
Other restaurant operating expense | $ | (1,970 | ) | $ | (136 | ) | |
Depreciation and amortization | 1,545 | 1,266 | |||||
General and administrative | 2,652 | 1,602 | |||||
Provision for impaired assets and restaurant closings | 3,111 | 8,865 | |||||
Other expense, net | — | 1,151 | |||||
Provision for income taxes | (9,702 | ) | (3,627 | ) | |||
Loss on defeasance, extinguishment and modification of debt | 26,580 | — | |||||
Net adjustments | $ | 22,216 | $ | 9,121 |
TABLE SEVEN | |||||||
BLOOMIN’ BRANDS, INC. | |||||||
SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATION | |||||||
(UNAUDITED) | |||||||
U.S. Segment | THIRTEEN WEEKS ENDED | ||||||
(dollars in thousands) | MARCH 27, 2016 | MARCH 29, 2015 | |||||
Income from operations (1) | $ | 117,839 | $ | 128,268 | |||
Operating income margin (1) | 11.3 | % | 12.1 | % | |||
Adjustments: | |||||||
Restaurant impairments and closing costs (2) | 2,224 | 1,336 | |||||
Restaurant relocations, remodels and related costs (3) | 640 | 1,169 | |||||
Severance (4) | 539 | — | |||||
Transaction-related expenses (5) | 334 | — | |||||
Adjusted income from operations (1) | $ | 121,576 | $ | 130,773 | |||
Adjusted operating income margin (1) | 11.6 | % | 12.3 | % | |||
International Segment | |||||||
(dollars in thousands) | |||||||
Income from operations | $ | 11,349 | $ | 8,879 | |||
Operating income margin | 9.4 | % | 6.3 | % | |||
Adjustments: | |||||||
Restaurant impairments and closing costs (6) | (433 | ) | 7,534 | ||||
Purchased intangibles amortization (7) | 860 | 1,283 | |||||
Adjusted income from operations | $ | 11,776 | $ | 17,696 | |||
Adjusted operating income margin | 9.8 | % | 12.6 | % |
(1) | During the first quarter of 2016 we recast our segment reporting. See the “Segment Recast” discussion above for additional details. |
(2) | Represents expenses incurred for the Bonefish Restructuring in 2016 and the Domestic Restructuring Initiative in 2015. |
(3) | Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation and remodel programs. |
(4) | Relates to severance expense incurred as a result of our organizational realignment. |
(5) | Relates to costs incurred with our sale-leaseback initiative. |
(6) | Represents expenses incurred primarily for the International Restaurant Closure Initiative. |
(7) | Represents non-cash intangible amortization recorded as a result of the acquisition of our Brazil operations. |
TABLE EIGHT | |||||
BLOOMIN’ BRANDS, INC. | |||||
IMPACT OF FOREIGN CURRENCY | |||||
(UNAUDITED) | |||||
Q1 2016 | |||||
ADJUSTED (1) | CONSTANT CURRENCY (2) | ||||
Adjusted income from operations growth | (15.8 | )% | (12.0 | )% | |
Adjusted net income growth | (18.7 | )% | (14.7 | )% | |
Adjusted Diluted earnings per share growth | (13.0 | )% | (9.3 | )% |
(1) | See reconciliation to U.S. GAAP results in Table Six of this release. |
(2) | Results excluding the effect of foreign currency translation, also referred to as constant currency, are calculated by translating current year results at prior year average exchange rates. The Company is primarily exposed to foreign currency fluctuations for the Brazil Real and South Korea Won. |
TABLE NINE | |||||
BLOOMIN’ BRANDS, INC. | |||||
COMPARATIVE RESTAURANT INFORMATION | |||||
(UNAUDITED) | |||||
Number of restaurants (at end of the period): | MARCH 27, 2016 | MARCH 29, 2015 | |||
U.S. | |||||
Outback Steakhouse | |||||
Company-owned | 649 | 649 | |||
Franchised | 105 | 105 | |||
Total | 754 | 754 | |||
Carrabba’s Italian Grill | |||||
Company-owned | 244 | 244 | |||
Franchised | 3 | 2 | |||
Total | 247 | 246 | |||
Bonefish Grill | |||||
Company-owned | 205 | 204 | |||
Franchised | 6 | 5 | |||
Total | 211 | 209 | |||
Fleming’s Prime Steakhouse & Wine Bar | |||||
Company-owned | 66 | 66 | |||
International | |||||
Company-owned | |||||
Outback Steakhouse - Brazil (1) | 76 | 64 | |||
Outback Steakhouse - South Korea | 74 | 75 | |||
Other | 17 | 10 | |||
Franchised | 57 | 57 | |||
Total | 224 | 206 | |||
System-wide total | 1,502 | 1,481 |
(1) | The restaurant counts for Brazil are reported as of February 29, 2016 and February 28, 2015, respectively, to correspond with the balance sheet dates of this subsidiary. |
TABLE TEN | |||||
BLOOMIN’ BRANDS, INC. | |||||
COMPARABLE RESTAURENT SALES INFORMATION | |||||
(UNAUDITED) | |||||
THIRTEEN WEEKS ENDED | |||||
MARCH 27, 2016 | MARCH 29, 2015 | ||||
Year over year percentage change: | |||||
Comparable restaurant sales (stores open 18 months or more) (1): | |||||
U.S. | |||||
Outback Steakhouse | (1.3 | )% | 5.0 | % | |
Carrabba’s Italian Grill | (2.0 | )% | 1.9 | % | |
Bonefish Grill | (2.7 | )% | 0.9 | % | |
Fleming’s Prime Steakhouse & Wine Bar | 1.3 | % | 3.0 | % | |
Combined U.S. | (1.5 | )% | 3.6 | % | |
International | |||||
Outback Steakhouse - Brazil (2) | 8.8 | % | 6.2 | % | |
Outback Steakhouse - South Korea | (5.6 | )% | (3.0 | )% | |
Traffic: | |||||
U.S. | |||||
Outback Steakhouse | (3.0 | )% | 0.5 | % | |
Carrabba’s Italian Grill | 1.5 | % | 3.3 | % | |
Bonefish Grill | (5.2 | )% | (1.8 | )% | |
Fleming’s Prime Steakhouse & Wine Bar | 1.2 | % | 0.7 | % | |
Combined U.S. | (2.2 | )% | 0.7 | % | |
International | |||||
Outback Steakhouse - Brazil | 0.3 | % | 1.1 | % | |
Outback Steakhouse - South Korea | (3.9 | )% | (4.6 | )% | |
Average check per person increases (decreases) (3): | |||||
U.S. | |||||
Outback Steakhouse | 1.7 | % | 4.5 | % | |
Carrabba’s Italian Grill | (3.5 | )% | (1.4 | )% | |
Bonefish Grill | 2.5 | % | 2.7 | % | |
Fleming’s Prime Steakhouse & Wine Bar | 0.1 | % | 2.3 | % | |
Combined U.S. | 0.7 | % | 2.9 | % | |
International | |||||
Outback Steakhouse - Brazil | 7.3 | % | 4.9 | % | |
Outback Steakhouse - South Korea | (1.7 | )% | 1.6 | % |
(1) | Comparable restaurant sales exclude the effect of fluctuations in foreign currency rates. Relocated international restaurants closed more than 30 days and relocated U.S. restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening. |
(2) | Includes the trading day impact from calendar period reporting of 1.3% and 0.2% for the thirteen weeks ended March 27, 2016 and March 29, 2015, respectively. |
(3) | Average check per person increases (decreases) includes the impact of menu pricing changes, product mix and discounts. |
TABLE ELEVEN | ||||||||||||||
BLOOMIN’ BRANDS, INC. | ||||||||||||||
COMPARABLE RESTAURENT SALES INFORMATION | ||||||||||||||
(UNAUDITED) | ||||||||||||||
THIRTEEN WEEKS ENDED | ||||||||||||||
MARCH 29, 2015 | JUNE 28, 2015 | SEPTEMBER 27, 2015 | DECEMBER 27, 2015 | FISCAL YEAR 2015 | ||||||||||
Year over year percentage change: | ||||||||||||||
Comparable restaurant sales (stores open 18 months or more) (1): | ||||||||||||||
U.S. | ||||||||||||||
Outback Steakhouse | 5.0 | % | 4.0 | % | 0.1 | % | (2.2 | )% | 1.8 | % | ||||
Carrabba’s Italian Grill | 1.9 | % | 0.9 | % | (2.0 | )% | (4.0 | )% | (0.7 | )% | ||||
Bonefish Grill | 0.9 | % | (4.6 | )% | (6.1 | )% | (5.4 | )% | (3.3 | )% | ||||
Fleming’s Prime Steakhouse & Wine Bar | 3.0 | % | 3.2 | % | (0.6 | )% | (0.3 | )% | 1.3 | % | ||||
Combined U.S. | 3.6 | % | 2.0 | % | (1.3 | )% | (2.8 | )% | 0.5 | % | ||||
International | ||||||||||||||
Outback Steakhouse - Brazil (2) | 6.2 | % | 3.4 | % | 6.1 | % | 7.3 | % | 6.3 | % | ||||
Outback Steakhouse - South Korea | (3.0 | )% | (11.8 | )% | 6.0 | % | 0.0 | % | (2.0 | )% | ||||
Traffic: | ||||||||||||||
U.S. | ||||||||||||||
Outback Steakhouse | 0.5 | % | (0.8 | )% | (0.9 | )% | (4.9 | )% | (1.5 | )% | ||||
Carrabba’s Italian Grill | 3.3 | % | 1.4 | % | (3.7 | )% | (1.9 | )% | (0.1 | )% | ||||
Bonefish Grill | (1.8 | )% | (7.8 | )% | (8.5 | )% | (8.4 | )% | (6.2 | )% | ||||
Fleming’s Prime Steakhouse & Wine Bar | 0.7 | % | 3.1 | % | (2.3 | )% | (2.6 | )% | (0.2 | )% | ||||
Combined U.S. | 0.7 | % | (1.1 | )% | (2.6 | )% | (4.6 | )% | (1.8 | )% | ||||
International | ||||||||||||||
Outback Steakhouse - Brazil | 1.1 | % | (0.7 | )% | 0.6 | % | (0.6 | )% | 0.5 | % | ||||
Outback Steakhouse - South Korea | (4.6 | )% | (12.6 | )% | 13.8 | % | 4.0 | % | 0.3 | % | ||||
Average check per person increases (decreases) (3): | ||||||||||||||
U.S. | ||||||||||||||
Outback Steakhouse | 4.5 | % | 4.8 | % | 1.0 | % | 2.7 | % | 3.3 | % | ||||
Carrabba’s Italian Grill | (1.4 | )% | (0.5 | )% | 1.7 | % | (2.1 | )% | (0.6 | )% | ||||
Bonefish Grill | 2.7 | % | 3.2 | % | 2.4 | % | 3.0 | % | 2.9 | % | ||||
Fleming’s Prime Steakhouse & Wine Bar | 2.3 | % | 0.1 | % | 1.7 | % | 2.3 | % | 1.5 | % | ||||
Combined U.S. | 2.9 | % | 3.1 | % | 1.3 | % | 1.8 | % | 2.3 | % | ||||
International | ||||||||||||||
Outback Steakhouse - Brazil | 4.9 | % | 4.5 | % | 6.2 | % | 7.8 | % | 6.0 | % | ||||
Outback Steakhouse - South Korea | 1.6 | % | 0.8 | % | (7.8 | )% | (4.0 | )% | (2.3 | )% |
(1) | Comparable restaurant sales exclude the effect of fluctuations in foreign currency rates. Relocated international restaurants closed more than 30 days and relocated U.S. restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening. |
(2) | Includes the trading day impact from calendar period reporting of 0.2%, (0.4)%, (0.7)%, 0.1% and (0.2)% for the thirteen weeks ended March 29, 2015, June 28, 2015, September 27, 2015, December 27, 2015 and fiscal year 2015, respectively. |
(3) | Average check per person increases (decreases) includes the impact of menu pricing changes, product mix and discounts. |
TABLE TWELVE | |||||||||||||||||||
BLOOMIN’ BRANDS, INC. | |||||||||||||||||||
SELECTED SEGMENT INFORMATION (1) | |||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||
THIRTEEN WEEKS ENDED | |||||||||||||||||||
MARCH 29, 2015 | JUNE 28, 2015 | SEPTEMBER 27, 2015 | DECEMBER 27, 2015 | FISCAL YEAR 2015 | |||||||||||||||
Selected Financial Data (dollars in thousands): | |||||||||||||||||||
U.S. | |||||||||||||||||||
Restaurant sales | $ | 1,056,104 | $ | 977,260 | $ | 897,280 | $ | 926,518 | $ | 3,857,162 | |||||||||
Other revenues | 5,910 | 5,718 | 5,173 | 5,780 | 22,581 | ||||||||||||||
Total revenues | $ | 1,062,014 | $ | 982,978 | $ | 902,453 | $ | 932,298 | $ | 3,879,743 | |||||||||
Restaurant-level operating margin | 18.0 | % | 15.9 | % | 13.8 | % | 15.8 | % | 16.0 | % | |||||||||
Income from operations | $ | 128,268 | $ | 96,192 | $ | 63,476 | 60,795 | $ | 348,731 | ||||||||||
Operating income margin | 12.1 | % | 9.8 | % | 7.0 | % | 6.5 | % | 9.0 | % | |||||||||
Segment income from operations | |||||||||||||||||||
U.S. | $ | 128,268 | $ | 96,192 | $ | 63,476 | $ | 60,795 | $ | 348,731 | |||||||||
International | 8,879 | 5,727 | 9,770 | 10,221 | 34,597 | ||||||||||||||
Total segment income from operations | 137,147 | 101,919 | 73,246 | 71,016 | 383,328 | ||||||||||||||
Unallocated corporate operating expense | (39,446 | ) | (39,334 | ) | (34,522 | ) | (39,101 | ) | (152,403 | ) | |||||||||
Total income from operations | $ | 97,701 | $ | 62,585 | $ | 38,724 | $ | 31,915 | $ | 230,925 |
(1) | During the first quarter of 2016, we recast our segment reporting. See the “Segment Recast” discussion above for additional details. |
TABLE THIRTEEN | |||||||||||||||||||
BLOOMIN’ BRANDS, INC. | |||||||||||||||||||
SELECTED SEGMENT INFORMATION - NON-GAAP RECONCILIATION (1) | |||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||
THIRTEEN WEEKS ENDED | |||||||||||||||||||
(dollars in thousands) | MARCH 29, 2015 | JUNE 28, 2015 | SEPTEMBER 27, 2015 | DECEMBER 27, 2015 | FISCAL YEAR 2015 | ||||||||||||||
Reconciliation of adjusted income from operations: | |||||||||||||||||||
U.S. | |||||||||||||||||||
Income from operations | $ | 128,268 | $ | 96,192 | $ | 63,476 | $ | 60,795 | $ | 348,731 | |||||||||
Operating income margin | 12.1 | % | 9.8 | % | 7.0 | % | 6.5 | % | 9.0 | % | |||||||||
Adjustments: | |||||||||||||||||||
Restaurant impairments and closing costs (2) | 1,336 | — | (20 | ) | 24,632 | 25,948 | |||||||||||||
Restaurant relocations, remodels and related costs (3) | 1,169 | 122 | 1,872 | 462 | 3,625 | ||||||||||||||
Adjusted income from operations | $ | 130,773 | $ | 96,314 | $ | 65,328 | $ | 85,889 | $ | 378,304 | |||||||||
Adjusted operating income margin | 12.3 | % | 9.8 | % | 7.2 | % | 9.2 | % | 9.8 | % |
(1) | During the first quarter of 2016, we recast our segment reporting. See the “Segment Recast” discussion above for additional details. |
(2) | Represents impairments and expenses incurred for the Domestic Restaurant Closure Initiative and Bonefish Restructuring. |
(3) | Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation and remodel programs. |
TABLE FOURTEEN | |||||||||||||||||||||||||||||
BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION - NON-GAAP RECONCILIATION (1) | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
THIRTEEN WEEKS ENDED | FISCAL YEAR | ||||||||||||||||||||||||||||
MARCH 29, 2015 | JUNE 28, 2015 | SEPTEMBER 27, 2015 | DECEMBER 27, 2015 | 2015 | |||||||||||||||||||||||||
Restaurant-level operating margin: | U.S GAAP | ADJUSTED | U.S GAAP | ADJUSTED | U.S GAAP | ADJUSTED | U.S GAAP | ADJUSTED | U.S GAAP | ADJUSTED | |||||||||||||||||||
U.S. | 18.0 | % | 18.0 | % | 15.9 | % | 15.9 | % | 13.8 | % | 13.8 | % | 15.8 | % | 15.8 | % | 16.0 | % | 16.0 | % |
(1) | During the first quarter of 2016, we recast our segment reporting. See the “Segment Recast” discussion above for additional details. |
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