In April 2013, the Company decided to accelerate its restaurant relocation plan primarily related to the Outback Steakhouse brand. This decision was based on meaningful sales increases experienced at test locations that were relocated in 2012. This will be a multi-year program with approximately 10 to 20 restaurants targeted for relocation in 2013. We expect that some of these restaurants will not be completed until 2014 and that the additional expenses would be in the range of approximately $4.0 million to $8.0 million in the current year.
Fiscal 2013 Financial Outlook
The Company is updating the following expectations for the full-year 2013:
- Comparable restaurant sales growth of at least 2.0% with positive traffic.
- Adjusted net income attributable to Bloomin' Brands, Inc. from at least $136.0 million to at least $141.0 million and GAAP net income attributable to Bloomin' Brands, Inc. from at least $136.0 million to at least $165.0 million. The GAAP net income attributable to Bloomin' Brands, Inc. assumes the potential release of the valuation allowance on deferred tax assets of at least $40.0 million during 2013 and a $14.0 million to $17.0 million charge associated with the repricing of the Company's senior secured term loan B facility.
- Based on the revised expectations for Adjusted and GAAP net income attributable to Bloomin' Brands, Inc., Adjusted diluted earnings per share from at least $1.06 to at least $1.10 and GAAP diluted earnings per share from at least $1.06 to at least $1.28.
- Incorporated in the increase in full-year Adjusted diluted earnings per share guidance of at least $1.10 is a second quarter estimate for Adjusted diluted earnings per share of at least $0.21.
- For the full-year 2013, the adjusted effective income tax rate is expected to range from 20.0% to 22.0%. The tax rate favorability in the first quarter was due to timing that is expected to reverse in the second quarter of 2013.
- Additional expenses associated with the restaurant relocation plan would be in the range of approximately $4.0 million to $8.0 million for 2013.
- Full-year 2013 interest expense of approximately $74.0 million which is approximately $9.0 million less than previously anticipated.
Conference CallThe Company will host a conference call on Wednesday, May 1, 2013 at 9:00 AM ET. The conference call can be accessed live over the telephone by dialing (877) 941-8416 or (480) 629-9808 for international callers. A replay will be available beginning two hours after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 4613929. The replay will be available until Wednesday, May 8, 2013. The call will also be webcast live from the Company's website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company's website, after 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 1,275 restaurants and has 203 restaurants operating under a franchise or joint venture arrangement across 48 states, Puerto Rico, Guam and 19 countries as of March 31, 2013. For more information, please visit www.bloominbrands.com. Forward-Looking Statements Certain statements contained herein, including statements under the headings "Recent Events and Other Information" and "Fiscal 2013 Financial Outlook," are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws. 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 the 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 Form 10-K filed with the Securities and Exchange Commission on March 4, 2013. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.