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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

The Company provides these adjusted operating results because it believes they are useful for investors to assess the operating performance of the Company's business without the effect of certain charges. For 2011 and through June 30, 2012, these charges include transaction costs related to dispositions and debt refinancing, management fees paid to the management company associated with the Company's sponsors and founders, loss on the extinguishment of debt and the tax effect of these items. The use of these measures permits a comparative assessment of the Company's operating performance relative to its performance based on its U.S. GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Management believes that these measures facilitate company-to-company comparisons within the industry by eliminating some of these foregoing variations.  These measures as presented may not be comparable to other similarly-titled measures of other companies, and the Company's presentation of them should not be construed as an inference that the Company's future results will be unaffected by excluded or unusual items.

Detail of Adjustments and Impact on Diluted Earnings Per Share

The following table demonstrates the detail for adjustments and the impact on diluted earnings per share for the three and six months ended June 30, 2012 and 2011 (in thousands, except per share data):

  THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
  2012 2011 2012 2011
Transaction-related expenses (1) $ —  $ 556  $ 6,761  $ 569
Management fees and expenses (2) 2,291 2,275 4,617 4,526
Loss on extinguishment of debt (3) 2,851
Tax effect of the above (4) (426) (470) (2,647) (846)
Total adjustments, net of tax  $ 1,865  $ 2,361  $ 11,582  $ 4,249
         
Diluted shares outstanding 107,380 106,214 107,255 106,362
Adjustment to diluted earnings per share  $ 0.02  $ 0.02  $ 0.11  $ 0.04

Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share

The following table reconciles diluted earnings per share to Adjusted diluted earnings per share for the three and six months ended June 30, 2012 and 2011:

  THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
  2012 2011 2012 2011
Diluted earnings per share   $ 0.16  $ 0.13  $ 0.63  $ 0.65
Adjustment to diluted earnings per share 0.02 0.02 0.11 0.04
Adjusted diluted earnings per share  $ 0.18  $ 0.15  $ 0.74  $ 0.69

Reconciliation of Income from Operations to Adjusted Income from Operations

The following table reconciles Income from operations to Adjusted income from operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

  THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
  2012 2011 2012 2011
Income from operations  $ 48,720  $ 40,754  $ 139,128  $ 131,447
Transaction-related expenses (1) 556 6,761 569
Management fees and expenses (2) 2,291 2,275 4,617 4,526
Adjusted income from operations  $ 51,011  $ 43,585  $ 150,506  $ 136,542

Reconciliation of Net Income Attributable to Bloomin' Brands, Inc. to Adjusted Net Income Attributable to Bloomin' Brands, Inc.

The following table reconciles Net income attributable to Bloomin' Brands, Inc. to Adjusted net income attributable to Bloomin' Brands, Inc. for the three and six months ended June 30, 2012 and 2011 (in thousands):

  THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
  2012 2011 2012 2011
Net income attributable to Bloomin' Brands, Inc.  $ 17,440  $ 14,003  $ 67,439  $ 68,895
Transaction-related expenses (1) 556 6,761 569
Management fees and expenses (2) 2,291 2,275 4,617 4,526
Loss on extinguishment of debt (3) 2,851
Tax effect of the above (4) (426) (470) (2,647) (846)
Adjusted net income attributable to Bloomin' Brands, Inc.  $ 19,305  $ 16,364  $ 79,021  $ 73,144
_________________        
(1) Transaction-related expenses primarily relate to those costs incurred in association with the refinancing of debt and other deal costs.
(2) Represents management fees and out-of-pocket and other reimbursable expenses paid to a management company owned by the Company's investor group comprised of funds advised by Bain Capital Partners, LLC and Catterton Management Company, LLC and Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon under a management agreement that terminated upon the completion of the IPO.
(3) Loss on extinguishment of debt is related to the refinancing of the CMBS Loan.
(4) Tax adjustments for the three and six months ended June 30, 2012 are calculated using the Company's expected full-year effective tax rate of 18.6%.  Tax adjustments for the three and six months ended June 30, 2011 are calculated using the Company's full-year 2011 effective tax rate of 16.6%.

Comparative Store Information

The table below presents the number of the Company's restaurants in operation at the end of the periods indicated:

  JUNE 30,
  2012 2011
Number of restaurants (at end of the period):    
Outback Steakhouse    
Company-owned - domestic 669 670
Company-owned - international 113 120
Franchised - domestic 106 107
Franchised and development joint venture - international 83 68
Total 971 965
Carrabba's Italian Grill    
Company-owned 230 231
Franchised 1 1
Total 231 232
Bonefish Grill    
Company-owned 155 145
Franchised 7 7
Total 162 152
Fleming's Prime Steakhouse and Wine Bar    
Company-owned 64 64
Roy's    
Company-owned 22 22
System-wide total 1,450 1,435
CONTACT: Mark W. Seymour, Jr.
         Vice President, Investor Relations
         (813) 282-1225

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