This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

The Wendy’s Company Reports 2012 Second-Quarter Results

The Company’s presentation of Adjusted EBITDA from continuing operations and Adjusted Earnings Per Share from continuing operations does not replace the presentation of the Company’s financial results in accordance with GAAP.

About The Wendy’s Company

The Wendy's Company is the world's third-largest quick-service hamburger company. The Wendy's system includes more than 6,500 franchise and Company restaurants in the United States and 27 countries and U.S. territories worldwide. For more information, visit aboutwendys.com or wendys.com.

 
 
The Wendy's Company and Subsidiaries
Consolidated Statements of Operations
Second Quarter and Six Month Periods Ended July 1, 2012 and July 3, 2011
(In Thousands Except Per Share Amounts)
             
Second Quarter Six Months
2012 2011 2012 2011
(Unaudited) (Unaudited)
Revenues:
Sales $ 566,116 $ 544,237 $ 1,086,045 $ 1,053,523
Franchise revenues   79,752     78,222     153,010     151,401  
  645,868     622,459     1,239,055     1,204,924  
Costs and expenses:
Cost of sales 483,080 464,798 938,547 903,669
General and administrative 73,345 74,456 145,649 149,141
Depreciation and amortization 35,947 29,842 68,258 60,156
Impairment of long-lived assets 3,270 365 7,781 8,262
Facilities relocation and other transition costs 9,426 - 14,957 -
Transaction related costs 562 5,039 1,174 6,923
Other operating expense, net   1,847     525     3,382     1,322  
  607,477     575,025     1,179,748     1,129,473  
Operating profit 38,391 47,434 59,307 75,451
Interest expense (28,002 ) (28,089 ) (56,237 ) (57,531 )
Loss on early extinguishment of debt (25,195 ) - (25,195 ) -
Gain on sale of investment, net - - 27,407 -
Other income, net   640     337     2,164     590  

(Loss) income from continuing operations before income taxes and  noncontrolling interests

(14,166 ) 19,682 7,446 18,510
Benefit from (provision for) income taxes   8,673     (8,308 )   1,795     (7,432 )
(Loss) income from continuing operations (5,493 ) 11,374 9,241 11,078
Discontinued operations:
Income from discontinued operations, net of income taxes - 3,672 - 2,559
Loss on disposal of discontinued operations, net of income tax benefit   -     (3,780 )   -     (3,780 )
Net loss from discontinued operations   -     (108 )   -     (1,221 )
Net (loss) income (5,493 ) 11,266 9,241 9,857
Net income attributable to noncontrolling interests   -     -     (2,384 )   -  
Net (loss) income attributable to The Wendy's Company $ (5,493 ) $ 11,266   $ 6,857   $ 9,857  
 
Basic and diluted (loss) income per share attributable to The Wendy's Company:
Continuing operations $ (0.01 ) $ 0.03 $ 0.02 $ 0.03
Discontinued operations   -     -     -     (0.01 )
Net (loss) income $ (0.01 ) $ 0.03   $ 0.02   $ 0.02  
 
Number of shares used to calculate basic (loss) income per share   389,978     417,676     389,840     418,098  
 
Number of shares used to calculate diluted (loss) income per share   389,978     419,239     392,001     419,415  
 
July 1,

2012

January 1,

2012

Balance Sheet Data: (Unaudited) (Audited)
Cash and cash equivalents $ 435,100 $ 475,231
Total assets 4,310,481 4,300,668
Long-term debt, including current portion 1,394,278 1,356,999
Total stockholders' equity 1,993,574 1,996,069
 
 
Reconciliation of Adjusted EBITDA from Continuing Operations

to Net (Loss) Income Attributable to The Wendy's Company

(In Thousands)
(Unaudited)
             
Second Quarter Six Months
2012 2011 2012 2011
 
Adjusted EBITDA from continuing operations $ 89,073 $ 89,415 $ 152,954 $ 163,140
 
(Less) plus:
 
Depreciation and amortization (35,947 ) (29,842 ) (68,258 ) (60,156 )
Impairment of long-lived assets (3,270 ) (365 ) (7,781 ) (8,262 )

Costs associated with closed restaurants in  other operating expense, net (a)

(1,477 ) - (1,477 ) -
Facilities relocation and other transition costs (9,426 ) - (14,957 ) -
Transaction related costs (562 ) (5,039 ) (1,174 ) (6,923 )

Arby's indirect corporate overhead in  general and administrative (G&A)

- (6,735 ) - (14,623 )
SSG purchasing cooperative expense reversal in G&A   -     -     -     2,275  
Operating profit 38,391 47,434 59,307 75,451
 
Interest expense (28,002 ) (28,089 ) (56,237 ) (57,531 )
Loss on early extinguishment of debt (25,195 ) - (25,195 ) -
Gain on sale of investment, net - - 27,407 -
Other income, net   640     337     2,164     590  

(Loss) income from continuing operations before  income taxes and noncontrolling interests

(14,166 ) 19,682 7,446 18,510
Benefit from (provision for) income taxes   8,673     (8,308 )   1,795     (7,432 )
(Loss) income from continuing operations (5,493 ) 11,374 9,241 11,078
Discontinued operations:
Income from discontinued operations, net of income taxes - 3,672 - 2,559
Loss on disposal of discontinued operations, net of income tax benefit   -     (3,780 )   -     (3,780 )
Net loss from discontinued operations   -     (108 )   -     (1,221 )
Net (loss) income (5,493 ) 11,266 9,241 9,857
Net income attributable to noncontrolling interests   -     -     (2,384 )   -  

Net (loss) income attributable to  The Wendy's Company

$ (5,493 ) $ 11,266   $ 6,857   $ 9,857  
 
(a) Excludes non-cash items included in impairment of long-lived assets.
 
 

Reconciliation of Adjusted Income and Adjusted Earnings per Share from Continuing Operations to Net (Loss) Income and Earnings per Share Attributable to The Wendy's Company

(In Thousands Except per Share Amounts)
(Unaudited)
                           
Second Quarter Six Months
2012 2011 2012 2011

Aftertax

Pershare (a)

Aftertax

Pershare

Aftertax

Pershare

Aftertax

Pershare

 
Adjusted income and adjusted earnings per share from continuing operations $ 19,221   $ 0.05   $ 19,016   $ 0.05   $ 22,568   $ 0.06   $ 28,292   $ 0.07  
(Less) plus:
Loss on early extinguishment of debt (15,621 ) (0.04 ) - - (15,621 ) (0.04 ) - -
Gain on sale of investment, net - - - - 17,978 0.05 - -
Impairment of long-lived assets (2,018 ) (0.01 ) (224 ) (0.00 ) (4,801 ) (0.02 ) (5,073 ) (0.01 )
Costs associated with closed restaurants in other operating expense, net (b) (911 ) (0.00 ) - - (911 ) (0.00 ) - -
Facilities relocation and other transition costs (5,817 ) (0.01 ) - - (9,246 ) (0.03 ) - -
Arby's indirect corporate overhead in general and administrative (G&A) - - (4,243 ) (0.01 ) - - (9,213 ) (0.02 )
Transaction related costs (347 ) (0.00 ) (3,175 ) (0.01 ) (726 ) (0.00 ) (4,361 ) (0.01 )
SSG purchasing cooperative expenses in G&A   -     -     -     -     -     -     1,433     0.00  
Total adjustments   (24,714 )   (0.06 )   (7,642 )   (0.02 )   (13,327 )   (0.04 )   (17,214 )   (0.04 )
 
(Loss) income from continuing operations and earnings per share (5,493 ) (0.01 ) 11,374 0.03 9,241 0.02 11,078 0.03
Discontinued operations:
Income from discontinued operations, net of income taxes - - 3,672 0.01 - - 2,559 0.00
Loss on disposal of discontinued operations, net of income tax benefit   -     -     (3,780 )   (0.01 )   -     -     (3,780 )   (0.01 )
Net loss from discontinued operations   -     -     (108 )   (0.00 )   -     -     (1,221 )   (0.01 )
Net (loss) income (5,493 ) (0.01 ) 11,266 0.03 9,241 0.02 9,857 0.02
Net income attributable to noncontrolling interests   -     -     -     -     (2,384 )   (0.00 )   -     -  
Net (loss) income and earnings per share attributable to The Wendy's Company $ (5,493 ) $ (0.01 ) $ 11,266   $ 0.03   $ 6,857   $ 0.02   $ 9,857   $ 0.02  
 
 
Reported number of shares used to calculate diluted (loss) income per share 389,978 419,239 392,001 419,415
Plus: Dilutive effect of stock options and restricted shares   1,748     -     -     -  
Adjusted number of shares used to calculate adjusted earnings per share   391,726     419,239     392,001     419,415  
 

(a)

Adjusted earnings per share amounts, for the second quarter of 2012, include the dilutive effect of stock options and restricted shares, which were excluded from the reported number of shares used to calculate basic and diluted loss per share, as the impact would have been anti-dilutive. Included above is a reconciliation of the number of shares used to calculate adjusted earnings per share amounts.

 

(b)

Excludes non-cash items included in impairment of long-lived assets.

 




6 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs