EX-99.2 3 ex992details.htm DETAIL OF SPRECIAL ITEMS AND RECONCILIATION FOR ADJUSTED EBITDA AND ADJUSTED G&A EX99.2 Details


EXHIBIT 99.2
Calculation of EBITDA and Reconciliation of EBITDA to Net (Loss) Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2010
 
2011
 
 
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Year
 
First Quarter
 
Second Quarter
 
 EBITDA
 
$
70,093

 
$
90,810

 
$
73,850

 
$
68,864

 
$
303,617

 
$
66,228

 
$
77,641

 
 Depreciation and amortization
 
(32,432
)
 
(31,381
)
 
(32,639
)
 
(30,394
)
 
(126,846
)
 
(30,314
)
 
(29,842
)
 
 Impairment of long-lived assets
 
—

 
(482
)
 
(20,921
)
 
(4,923
)
 
(26,326
)
 
(7,897
)
 
(365
)
 
 Operating profit
 
37,661

 
58,947

 
20,290

 
33,547

 
150,445

 
28,017

 
47,434

 
 Interest expense
 
(31,065
)
 
(29,516
)
 
(29,159
)
 
(28,645
)
 
(118,385
)
 
(29,442
)
 
(28,089
)
 
 Loss on early extinguishment of debt
 
—

 
(26,197
)
 
—

 
—

 
(26,197
)
 
—

 
—

 
 Investment income, net
 
129

 
5,048

 
77

 
5

 
5,259

 
37

 
148

 
 Other income, net
 
1,068

 
885

 
163

 
318

 
2,434

 
216

 
189

 
 Income (loss) before income taxes
 
7,793

 
9,167

 
(8,629
)
 
5,225

 
13,556

 
(1,172
)
 
19,682

 
 (Provision for) benefit from income taxes
 
(482
)
 
(3,725
)
 
7,872

 
890

 
4,555

 
876

 
(8,308
)
 
 Income (loss) from continuing operations
 
7,311

 
5,442

 
(757
)
 
6,115

 
18,111

 
(296
)
 
11,374

 
 Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (Loss) income from discontinued operations, net of
      income taxes
 
(10,711
)
 
5,300

 
(152
)
 
(16,873
)
 
(22,436
)
 
(1,113
)
 
3,672

 
 Loss on disposal, net of income tax benefit
 
—

 
—

 
—

 
—

 
—

 
—

 
(3,780
)
 
 Net (loss) income from discontinued operations
 
(10,711
)
 
5,300

 
(152
)
 
(16,873
)
 
(22,436
)
 
(1,113
)
 
(108
)
 
 Net (loss) income
 
$
(3,400
)
 
$
10,742

 
$
(909
)
 
$
(10,758
)
 
$
(4,325
)
 
$
(1,409
)
 
$
11,266

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Reconciliation of EBITDA to Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2010
 
2011
 
 
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Year
 
First Quarter
 
Second Quarter
 
EBITDA
 
$
70,093

 
$
90,810

 
$
73,850

 
$
68,864

 
$
303,617

 
$
66,228

 
$
77,641

 
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Arby’s indirect corporate overhead in general and
      administrative (G&A)
 
9,646

 
7,702

 
7,323

 
7,898

 
32,569

 
7,888

 
6,735

 
SSG purchasing cooperative expenses in G&A
 
4,900

 
—

 
—

 
245

 
5,145

 
(2,275
)
 
—

 
Integration costs in G&A
 
2,894

 
856

 
579

 
1,185

 
5,514

 
—

 
—

 
Reversal of pension withdrawal expense in cost of
      sales
 
—

 
—

 
—

 
(4,975
)
 
(4,975
)
 
—

 
—

 
Retention program and other transaction related costs
 
—

 
—

 
—

 
—

 
—

 
1,884

 
5,039

 
Adjusted EBITDA
 
$
87,533

 
$
99,368

 
$
81,752

 
$
73,217

 
$
341,870

 
$
73,725

 
$
89,415

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of G&A to Adjusted G&A Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2010
 
2011
 
 
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Year
 
First Quarter
 
Second Quarter
 
G&A, as reported, adjusted for discontinued operations
      presentation
 
$
82,340

 
$
74,081

 
$
73,984

 
$
81,106

 
$
311,511

 
$
74,685

 
$
74,456

 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Arby’s indirect corporate overhead
 
(9,646
)
 
(7,702
)
 
(7,323
)
 
(7,898
)
 
(32,569
)
 
(7,888
)
 
(6,735
)
 
SSG purchasing cooperative expenses
 
(4,900
)
 
—

 
—

 
(245
)
 
(5,145
)
 
2,275

 
—

 
Integration costs
 
(2,894
)
 
(856
)
 
(579
)
 
(1,185
)
 
(5,514
)
 
—

 
—

 
Adjusted G&A
 
$
64,900

 
$
65,523

 
$
66,082

 
$
71,778

 
$
268,283

 
$
69,072

 
$
67,721

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Disclosure Regarding Non-GAAP Financial Measures
EBITDA is used by the Company as a performance measure for benchmarking against the Company’s peers and competitors.  The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the restaurant industry. The Company also uses adjusted EBITDA which excludes certain special or non-recurring expenses, net of certain special or non-recurring benefits, detailed in the reconciliation tables set forth above, and adjusted general and administrative, which excludes Arby’s indirect corporate overhead, and purchasing cooperative and integration costs, as internal measures of business operating performance.  The Company believes such financial measures provide a meaningful perspective of the underlying operating performance of the Company’s current business.  EBITDA, adjusted EBITDA and adjusted general and administrative are not recognized terms under U.S. Generally Accepted Accounting Principles (“GAAP”).  Because all companies do not calculate EBITDA, similarly titled financial measures or adjusted general and administrative in the same way, those measures as used by other companies may not be consistent with the way the Company calculates such measures and should not be considered as alternative measures of operating profit or net loss, or general and administrative.

The Company’s presentation of EBITDA, adjusted EBITDA and adjusted general and administrative is not intended to replace the presentation of the Company’s financial results in accordance with GAAP.