Bloomin' Brands, Inc. Announces Second Quarter EPS Of $0.16 Or 23% Above A Year Ago; Reports Ninth Consecutive Quarter Of Positive Comparable Restaurant Sales Growth For All Core Domestic Concepts; And Provides Full-Year Guidance For 2012
"As we look forward to the rest of 2012, we feel very good about our sales and profit trends. Our plans are in place to execute against our major growth drivers - consistently growing comparable restaurant sales across our portfolio and building new restaurants in the United States and key international markets, while becoming a more productive and efficient company."
Second Quarter 2012 Financial Results
The following summarizes the Company's results for the second quarter ended June 30, 2012 compared to the same quarter last year:
- Total revenues increased by 2.7% to $980.9 million. This increase was primarily due to increases in customer traffic and modest price increases. Traffic increases were driven by menu innovations and promotions throughout the Company's concepts, innovations and improvements in customer service, weekend lunch expansions at Outback Steakhouse and Carrabba's Italian Grill and additional renovations at Outback Steakhouse. Sales also increased due to the addition of 15 new locations that were not included in the comparable restaurant sales base. This was partially offset by the sale (and franchise conversion) of nine Company-owned Outback Steakhouse restaurants in Japan in October 2011 and from the closing of four restaurants since June 30, 2011.
- Blended domestic comparable restaurant sales for Company-owned restaurants grew by 2.4% for the Company's four core concepts. Results for Company-owned restaurants, by concept, were as follows:
|THREE MONTHS ENDED JUNE 30, 2012||COMPANY- OWNED|
|Domestic comparable restaurant sales (stores open 18 months or more)|
|Carrabba's Italian Grill||1.5%|
|Fleming's Prime Steakhouse and Wine Bar||6.8%|
- The number of weekdays and weekend days, as well as the timing of holidays, can impact the Company's reported comparable restaurant sales. The trading day impact on blended domestic comparable restaurant sales for Company-owned restaurants for the second quarter of 2012 was approximately (0.6)%. Without the trading day impact, blended domestic comparable restaurant sales for Company-owned restaurants grew by 3.0% for the second quarter of 2012.
- Adjusted net income attributable to Bloomin' Brands, Inc. increased 18.0% to $19.3 million. Net income attributable to Bloomin' Brands, Inc. increased 24.5% in the quarter to $17.4 million. This was primarily due to increased sales and improved management of labor costs as a result of productivity initiatives instituted during the quarter.
Recent Events and Other InformationOn August 13, 2012, the Company completed its initial public offering ("IPO") of 16 million shares of common stock at a public offering price of $11.00 per share. The Company issued and sold 13 million shares and certain of the Company's stockholders sold 3 million shares in the IPO. The shares are listed on the NASDAQ Global Select Market and trade under the ticker symbol BLMN. The net proceeds received from the sale of common stock shares in the IPO, after deducting underwriter discounts and commissions and expenses payable by the Company, were approximately $130.2 million and were used to retire the 10% Senior Notes due 2015 (the "Notes") of the Company's wholly-owned subsidiary, OSI Restaurant Partners, LLC ("OSI") as described below. The underwriters associated with the IPO have an option to purchase an additional 2.4 million shares. If exercised in full, the Company will issue and sell 1.2 million shares and selling stockholders will sell 1.2 million shares. The option has not been exercised as of the date of this release and expires on September 6, 2012.
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