Bloomin' Brands, Inc. Announces Fourth Quarter Adjusted Diluted Earnings Per Share Of $0.20, An Increase Of $0.10; Fourth Quarter GAAP Diluted Earnings Per Share Of $0.15, A Decrease Of $0.13; Eleventh Consecutive Quarter Of Growth For Core Domestic Comparable Sales
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 OutlookDavid 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.
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