EX-99.2 3 exhibit99-2_2009q2.htm exhibit99-2_2009q2.htm
EXHIBIT 99.2
 
 
Wendy's/Arby's Group, Inc. and Subsidiaries  
Pro-forma Statement of Operations(1)
  
Fiscal 2008 by Quarter
  
 (unaudited)  
 (In thousands except per share data)  
                               
   
First
    
Second
    
Third
    
Fourth
        
   
Quarter
    
Quarter
    
Quarter
    
Quarter (2)
    
2008
  
 Revenues:
                              
 Sales
   $ 794,596     $ 847,425     $ 835,752     $ 801,731     $ 3,279,504  
 Franchise revenues
     91,184       97,823       99,339       94,791       383,137  
      885,780       945,248       935,091       896,522       3,662,641  
 Costs and expenses:
                                        
 Cost of sales
     693,806       732,983       718,518       697,217       2,842,524  
 General and administrative
     116,676       109,563       102,955       125,610       454,804  
 Depreciation and amortization
     47,635       46,724       46,225       46,017       186,601  
 Goodwill impairment
     -       -       -       460,075       460,075  
 Impairment of other long-lived assets
     202       1,363       15,445       3,582       20,592  
 Facilities relocation and corporate restructuring
     1,141       1,446       747       3,101       6,435  
 Other operating expense (income), net
     253       (778 )     (382 )     1,140       233  
 Wendy's special committee costs
     6,657       8,566       69,008       -       84,231  
      866,370       899,867       952,516       1,336,742       4,055,495  
                                         
 Operating profit (loss)
     19,410       45,381       (17,425 )     (440,220 )     (392,854 )
                                         
 Interest expense
     (24,536 )     (24,913 )     (24,974 )     (25,989 )     (100,412 )
 Gain on early extinguishment of debt
     -       -       -       3,656       3,656  
 Investment income (loss), net
     3,869       (3,383 )     8,825       6,249       15,560  
 Other than temporary losses on investments
     (68,086 )     (3,500 )     (8,100 )     (33,055 )     (112,741 )
 Other (expense) income, net
     (4,796 )     1,320       (2,567 )     1,673       (4,370 )
 (Loss) income from continuing operations before income taxes
     (74,139 )     14,905       (44,241 )     (487,686 )     (591,161 )
 Benefit from (provision for) income taxes
     9,056       (2,486 )     888       89,460       96,918  
 (Loss) income from continuing operations
     (65,083 )     12,419       (43,353 )     (398,226 )     (494,243 )
(Loss) income from discontinued operations, net of income taxes
     -       -       1,219       998       2,217  
                                         
Net (loss) income
   $ (65,083 )   $ 12,419     $ (42,134 )   $ (397,228 )   $ (492,026 )
                                         
 EBITDA (a)
   $ 67,247     $ 93,468     $ 44,245     $ 69,454     $ 274,414  
                                         
                                         
Basic and diluted (loss) income per share:
                                        
 Continuing operations
   $ (0.14 )   $ 0.03     $ (0.09 )   $ (0.85 )   $ (1.05 )
 Discontinued operations
     -       -       -       -       -  
 Net income (loss)
   $ (0.14 )   $ 0.03     $ (0.09 )   $ (0.85 )   $ (1.05 )
                                         
Weighted average number of shares:
     469,320       469,400       469,426       468,802       469,219  
                                         
                                         
(a) The calculation of EBITDA and a reconciliation of consolidated EBITDA to net income (loss) follows:
          
                                         
 EBITDA
   $ 67,247     $ 93,468     $ 44,245     $ 69,454     $ 274,414  
 Depreciation and amortization
     (47,635 )     (46,724 )     (46,225 )     (46,017 )     (186,601 )
 Goodwill impairment
     -       -       -       (460,075 )     (460,075 )
 Impairment of other long-lived assets
     (202 )     (1,363 )     (15,445 )     (3,582 )     (20,592 )
                                         
 Operating profit (loss)
     19,410       45,381       (17,425 )     (440,220 )     (392,854 )
                                         
 Interest expense
     (24,536 )     (24,913 )     (24,974 )     (25,989 )     (100,412 )
 Gain (loss) on early extinguishment of debt
     -       -       -       3,656       3,656  
 Investment income (loss), net
     3,869       (3,383 )     8,825       6,249       15,560  
 Other than temporary losses on investments
     (68,086 )     (3,500 )     (8,100 )     (33,055 )     (112,741 )
 Other (expense) income, net
     (4,796 )     1,320       (2,567 )     1,673       (4,370 )
 (Loss) income from continuing operations before income taxes
     (74,139 )     14,905       (44,241 )     (487,686 )     (591,161 )
 Benefit from (provision for) income taxes
     9,056       (2,486 )     888       89,460       96,918  
 (Loss) income from continuing operations
     (65,083 )     12,419       (43,353 )     (398,226 )     (494,243 )
(Loss) income from discontinued operations, net of income taxes
     -       -       1,219       998       2,217  
                                         
Net (loss) income
   $ (65,083 )   $ 12,419     $ (42,134 )   $ (397,228 )   $ (492,026 )
                                         
 Reconciliation of EBITDA to Adjusted EBITDA
                                        
                                         
 EBITDA
   $ 67,247     $ 93,468     $ 44,245     $ 69,454     $ 274,414  
 Plus:  Wendy's special committee costs
     6,657       8,566       69,008       -       84,231  
 Plus:  Facilities relocation and corporate restructuring
     1,141       1,446       747       3,101       6,435  
 Plus:  Integration costs included in general and administrative
     -       -       -       1,857       1,857  
                                         
 Adjusted EBITDA
   $ 75,045     $ 103,480     $ 114,000     $ 74,412     $ 366,937  
 
 
(1) The unaudited pro-forma statement of operations is based upon the historical consolidated financial statements of Wendy’s/Arby’s Group, Inc.(formerly Triarc Companies, Inc.) and Wendy’s International, Inc. and has been prepared to illustrate the effect of the September 29, 2008 merger in which Wendy’s became a wholly owned subsidiary of Wendy’s/Arby’s. The pro-forma results of operations are prepared on an “as if” basis assuming the merger with Wendy’s occurred at the beginning of 2008 and includes the effect of the revised preliminary purchase price allocation as of June 28, 2009.
 
(2) Represents actual (post-merger) results as adjusted to reflect the revised preliminary purchase price allocation as of June 28, 2009.