Carrols Restaurant Group, Inc. ("Carrols" or the “Company”) (Nasdaq: TAST) today announced financial results for the third quarter ended September 30, 2012. The Company also updated its guidance for 2012.
Highlights for the third quarter of 2012 versus the third quarter of 2011 include:
- Restaurant sales increased 87.1% to $169.5 million including $75.1 million in sales from the 278 BURGER KING® restaurants that were acquired on May 30, 2012;
- Comparable restaurant sales at legacy restaurants were strong and increased 6.2%, including customer traffic growth of 3.6%;
- Net loss from continuing operations was $6.7 million, or $0.29 per diluted share, compared to net income from continuing operations of $0.4 million, or $0.02 per diluted share, in the prior year period;
- Net loss from continuing operations included certain charges, including integration costs related to the acquisition and costs related to the Company's EEOC litigation, which in total were approximately $5.3 million or $0.14 per diluted share after tax. The net loss also included a $1.4 million charge ($0.06 per diluted share) to tax expense for a valuation allowance against certain deferred tax assets. Net income from continuing operations in the prior year period included a loss on refinancing of $1.2 million, or $0.03 per diluted share after tax;
- Adjusted EBITDA, a non-GAAP measure, was $7.1 million compared to $8.4 million in the prior year period. (Adjusted EBITDA is before $3.4 million of integration costs but includes a $1.9 million charge related to the EEOC litigation. Refer to the reconciliation of Adjusted EBITDA to net income (loss) from continuing operations in the tables at the end of this release).
As of September 30, 2012, Carrols owned and operated 572 BURGER KING® restaurants.
Daniel T. Accordino, Chief Executive Officer of Carrols Restaurant Group, Inc. said, “Comparable restaurant sales at our legacy restaurants continued to be strong increasing 6.2%, the fifth consecutive quarter of positive trends, and improved sequentially on a two-year basis. We believe that the BURGER KING® strategy of innovation and targeted promotions is proving very effective in attracting new customers, increasing traffic and raising our average check. Profitability and restaurant operating margins at our legacy restaurants also continued to improve as we leveraged these sales increases."
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