During the fourth quarter, the Company acquired the remaining joint venture interests in 19 Roy's restaurants. In addition, the Company bought the remaining limited partnership interests in certain entities that either owned or had a contractual right to varying percentages of cash flows in 35 Bonefish Grill restaurants and two Carrabba's Italian Grill restaurants for an aggregate purchase price of $49.2 million. As part of the acquisition of the outstanding Roy's interests, the Company assumed a $24.5 million line of credit which was previously recorded in the Company's consolidated balance sheet in the line item "Guaranteed Debt." In December 2012, the Company repaid the entire balance outstanding on this line of credit and terminated it.
Recent Events and Other Information
In January 2013, the Company made a voluntary prepayment of principal on its term loan B in the amount of $20 million.
Fiscal 2013 Financial Outlook
David Deno, Executive Vice President and CFO said, "While we feel very good about our plans and financial goals for 2013, the first quarter appears to be challenging for the casual dining industry. Based on what we are seeing, we expect our same restaurant sales comparisons and traffic for our core domestic concepts to end the quarter in the range of 0% to 1%. This estimate includes 80 basis points of negative trading day impact, mainly attributable to Leap Year in 2012."
Below are the Company's expectations for the full-year 2013:
- Comparable restaurant sales growth of at least 2% with positive traffic.
- Total revenues of approximately $4.2 billion representing an increase over 2012 of approximately 4.5%. The Company expects to build to its long-term target of 7% revenue growth as it continues to build the new restaurant pipeline.
- Adjusted and GAAP net income attributable to Bloomin' Brands, Inc. of at least $136 million. Both of these include a net pretax reduction in interest expense of approximately $2 million versus 2012. This reduction is primarily due to paydown of outstanding principal, partially offset by higher interest rates on the recently refinanced debt instruments. Excluded from the estimates is the potential release of the valuation allowance associated with the Company's deferred tax assets during 2013.
- Based on the Adjusted net income attributable to Bloomin' Brands, Inc. expectation above, Adjusted and GAAP diluted earnings per share of at least $1.06. This assumes an expected weighted-average diluted share count for the year of approximately 128 million shares which represents an increase of approximately 13 million shares as compared to 2012. This increase is due to the timing of the Company's initial public offering in August 2012.
- Commodity inflation of approximately 3% to 5% with beef inflation in the range of 10% to 12%.
- On an adjusted basis, which assumes the release of the valuation allowance, the expected effective income tax rate is in the range of 20% to 22%.
- System-wide new unit development in the range of 45-55 restaurants.
- Remodel plans for the year include the renovation of approximately 80 Outback Steakhouse and 50-60 Carrabba's Italian Grill restaurants.
- Total capital expenditures for the year are targeted to be approximately $220 million to $250 million.
The Company will host a conference call on Friday, February 22, 2012 at 9:00 AM ET. The conference call can be accessed live over the telephone by dialing (888) 822-9375 or (817) 727-4626 for international callers. A replay will be available beginning two hours after the call and can be accessed by dialing (855) 859-2056 or (404) 537-3406 for international callers; the conference ID is 94351585. The replay will be available until Friday, March 22, 2013. The call will also be webcast live from the Company's website at
under the Investors section. A replay of this webcast will be available on the Company's website for 30 days following the call.
About Bloomin' Brands, Inc.
The Company is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has five founder-inspired brands: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar and Roy's, with all except Roy's considered core concepts. The Company owns and operates 1,268 restaurants and has 203 restaurants operating under a franchise or joint venture arrangement across 48 states, Puerto Rico, Guam and 19 countries as of December 31, 2012. For more information, please visit
Certain statements contained herein, including statements under the heading "Fiscal 2013 Financial Outlook" are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as "believes," "estimates," "anticipates," "expects," "feels," "forecasts," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company's forward-looking statements. These risks and uncertainties include, but are not limited to: local, regional, national and international economic conditions; consumer confidence and spending patterns; price and availability of commodities, such as beef, chicken, shrimp, pork, seafood, dairy, potatoes, onions and energy supplies, which are subject to fluctuation and could increase or decrease more than the Company expects; weather, acts of God and other disasters; the potential release of our deferred tax asset valuation allowance, and the timing of any such release; the seasonality of the Company's business; inflation or deflation; increases in unemployment rates and taxes; increases in labor and health insurance costs; competition and changes in consumer tastes and the level of acceptance of the Company's restaurant concepts (including consumer acceptance of prices); consumer reaction to public health issues; consumer perception of food safety; demographic trends; the cost of advertising and media; government actions and policies; interest rate changes, compliance with debt covenants and the Company's ability to make debt payments; the availability of credit presently arranged from the Company's revolving credit facilities; and the future cost and availability of credit. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its Prospectus filed with the Securities and Exchange Commission on August 8, 2012. The Company assumes no obligation to update any forward-looking statement, except as may be required by law.