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| 8-K - 8-K - Wingstop Inc. | a8-kq42015.htm |
FOR IMMEDIATE RELEASE
Wingstop Inc. Reports Fiscal Fourth Quarter and Fiscal Year 2015 Financial Results
Announces Annual Guidance for Fiscal Year 2016
Dallas, March 3, 2016 - (GLOBE NEWSWIRE) - Wingstop Inc. (NASDAQ: WING) today announced fiscal fourth quarter and fiscal year 2015 financial results for the period ended December 26, 2015 and annual guidance for fiscal year 2016.
Highlights for the Fiscal Fourth Quarter 2015 compared to the Fiscal Fourth Quarter 2014
▪ | Total revenue increased 14.0% to $20.6 million |
▪ | System-wide restaurant count increased 18.7% to 845 worldwide locations |
▪ | Domestic same store sales increased 5.9% |
▪ | Net income increased to $3.8 million, or $0.13 per diluted share, compared to $1.5 million, or $0.06 per diluted share |
▪ | Adjusted EBITDA*, a non-GAAP measure, increased 35.8% to $7.9 million |
▪ | Adjusted net income*, a non-GAAP measure, increased 65.3% to $3.8 million |
▪ | Adjusted earnings per pro-forma diluted share*, a non-GAAP measure, was $0.13, an increase of 62.5% from the prior year period |
Highlights for the Fiscal Year 2015 compared to the Fiscal Year 2014:
▪ | Total revenue increased 15.6% to $78.0 million |
▪ | 133 net openings in fiscal year 2015, an increase of 35.7% compared to 2014 net openings |
▪ | Domestic same store sales increased 7.9% |
▪ | Net income increased 12.5% to $10.1 million, or $0.36 per diluted share, compared to $9.0 million, or $0.34 per diluted share |
▪ | Adjusted EBITDA*, a non-GAAP measure, increased 18.5% to $28.9 million |
▪ | Adjusted net income*, a non-GAAP measure, increased 29.4% to $13.6 million |
▪ | Adjusted earnings per pro-forma diluted share*, a non-GAAP measure, was $0.47, an increase of 27.0% from the prior year |
* Adjusted EBITDA, adjusted net income and adjusted earnings per pro-forma diluted share are non-GAAP measures. Reconciliations of adjusted EBITDA, adjusted net income and adjusted pro-forma diluted EPS to the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures.”
President and Chief Executive Officer Charlie Morrison stated, “We delivered strong performance in 2015 by successfully executing on our growth strategy and exceeding our annual guidance across all key metrics. We grew our system-wide restaurant count by 19% with 133 net new store openings and posted our 12th consecutive year of positive same store sales with a 7.9% increase in domestic same store sales. This yielded a 15.6% increase in our top-line, which we then leveraged into even higher growth of 18.5% in adjusted EBITDA and 29.4% in adjusted net income. Let me thank our entire team, franchisees, and loyal fan base for their contributions to these achievements.”
Morrison concluded, “We firmly believe that Wingstop is a unique brand in a category of one, and we continue to make progress towards our full potential of an estimated 2,500 domestic restaurants. For 2016, we have outlined in our guidance another strong performance for system-wide store openings, domestic same store sales, and adjusted EBITDA, among other items. Our outlook reflects the attractive characteristics of a growth-oriented concept with appealing franchisor cash flow attributes.”
Key Operating Metrics for the Fiscal Fourth Quarter 2015 Compared to the Fiscal Fourth Quarter 2014
Thirteen Weeks Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Number of system-wide restaurants open at end of period | 845 | 712 | |||||
Number of domestic franchise restaurants open at end of period | 767 | 652 | |||||
Number of international franchise restaurants open at end of period | 59 | 41 | |||||
System-wide sales (in thousands) | $ | 217,582 | $ | 181,990 | |||
System-wide domestic same store sales growth | 5.9 | % | 12.5 | % | |||
Adjusted EBITDA (in thousands) | $ | 7,895 | $ | 5,814 | |||
Fiscal Fourth Quarter 2015 Financial Results
Total revenue for the fiscal fourth quarter 2015 increased 14.0% to $20.6 million from $18.1 million in the fiscal fourth quarter last year.
▪ | Royalty revenue and franchise fees increased 16.7% to $12.5 million from $10.7 million in the fiscal fourth quarter last year. This was primarily due to a 19.2% increase in the number of franchised restaurants and domestic same store sales growth of 5.9%. |
▪ | Company-owned restaurant sales increased $0.7 million to $8.0 million from $7.3 million in the fiscal fourth quarter last year. The increase was the result of company-owned domestic same store sales growth of 9.9%. |
Cost of sales increased 6.2% to $5.6 million from $5.3 million in the prior fiscal year’s fourth quarter. As a percentage of company-owned restaurant sales, cost of sales decreased 240 basis points to 70.2% from 72.6%. The decrease was primarily driven by a 7% decrease in the commodity cost of bone-in chicken wings, coupled with sales leverage and operational efficiencies in both food and labor costs.
Selling, general & administrative expenses (SG&A) decreased to $7.7 million from $8.9 million in the prior fiscal year’s fourth quarter. The decrease in SG&A was primarily due to $1.2 million of expenses incurred in the prior fiscal year’s fourth quarter associated with our preparation to be a public company.
Net income increased 152.8% to $3.8 million, or $0.13 per diluted share, compared to net income of $1.5 million, or $0.06 per diluted share in the prior fiscal year’s fourth quarter.
Adjusted net income increased 65.3% to $3.8 million, or $0.13 per pro-forma diluted share, compared to $2.3 million, or $0.08 per pro-forma diluted share, in the prior fiscal year’s fourth quarter. A reconciliation between net income and adjusted net income as well as diluted shares to pro-forma diluted shares is included in the accompanying financial data.
Key Operating Metrics for the Fiscal Year 2015 Compared to the Fiscal Year 2014
Year Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Number of system-wide restaurants open at end of period | 845 | 712 | |||||
Number of domestic franchise restaurants open at end of period | 767 | 652 | |||||
Number of international franchise restaurants open at end of period | 59 | 41 | |||||
System-wide sales (in thousands) | $ | 821,248 | $ | 678,771 | |||
System-wide domestic same store sales growth | 7.9 | % | 12.5 | % | |||
Adjusted EBITDA (in thousands) | $ | 28,879 | $ | 24,378 | |||
Fiscal Year 2015 Financial Results
Total revenue for fiscal year 2015 increased 15.6% to $78.0 million from $67.4 million in the last fiscal year.
• | Royalty revenue and franchise fees increased 22.8% to $46.7 million from $38.0 million in the prior fiscal year. This was primarily due to a 19.2% increase in the number of franchised restaurants and domestic same store sales growth of 7.9%. |
• | Company-owned restaurant sales increased $1.9 million to $31.3 million from $29.4 million in the prior fiscal year. The increase was the result of company-owned domestic same store sales growth of 9.4%, which was partially offset by the refranchising of five company-owned restaurants during the first quarter of 2014. |
Cost of sales increased 8.5% to $22.2 million from $20.5 million in the prior fiscal year. As a percentage of company-owned restaurant sales, cost of sales increased 140 basis points to 71.0% from 69.6%. The increase was primarily driven by a 17.1% increase in the commodity cost of bone-in chicken wings, which was partially offset by sales leverage and operational efficiencies in both food and labor costs.
SG&A increased to $33.4 million from $26.0 million in the prior fiscal year. The increase in SG&A was primarily due to a one-time fee of $3.3 million for the termination of a management agreement coupled with headcount additions and other recurring costs to support our growth.
Net income increased 12.5% to $10.1 million, or $0.36 per diluted share, compared to net income of $9.0 million, or $0.34 per diluted share in the prior fiscal year.
Adjusted net income increased 29.4% to $13.6 million, or $0.47 per pro-forma diluted share, compared to $10.5 million, or $0.37 per pro-forma diluted share, in the prior fiscal year. A reconciliation between net income and adjusted net income as well as diluted shares to pro-forma diluted shares is included in the accompanying financial data.
Restaurant Development
As of December 26, 2015, there were 845 Wingstop restaurants system-wide. This included 786 restaurants in the United States, of which 767 were franchised restaurants and 19 were company-owned. Our international footprint consisted of 59 franchised restaurants across six countries. During the fourth quarter, there were 40 system-wide Wingstop openings, including 31 domestic franchised and 9 international franchised locations.
Fiscal Year 2016 Financial Outlook
For the fiscal year ending December 31, 2016, we are providing the following financial outlook that is consistent with our long term targets:
▪ | Total revenue between $88 million and $89 million, an increase of 13% to 14% from 2015 |
▪ | 125 to 135 net system-wide restaurant openings, representing approximately 15% unit growth. This includes one additional corporate restaurant that is expected to open in the second or third fiscal quarter of 2016 |
▪ | Domestic same store sales growth in the low single digits |
▪ | SG&A expenses between $33 million and $34 million inclusive of approximately $1.3 million of stock based compensation expense, $0.9 million of expenses associated with our franchisee convention, $0.8 million of expenses associated with the 53rd week and $0.8 million of incremental on-going public company costs |
▪ | Adjusted EBITDA of approximately $33 million, an increase of 14% from 2015 |
▪ | Adjusted earnings per pro-forma diluted share of approximately $0.55 |
▪ | Diluted share count of approximately 29 million shares |
▪ | Included in the above amounts is the expected impact of the 53rd week of fiscal year 2016, which is approximately $1.4 million of revenue and $0.3 million of adjusted EBITDA |
The following definitions apply to these terms as used in this release:
Same store sales reflects the change in year-over-year sales for the comparable restaurant base. We define the comparable restaurant base to include those restaurants open for at least 52 full weeks. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and closures.
System-wide sales represents net sales for all of our company-owned and franchised restaurants, as reported by franchisees.
Adjusted EBITDA is defined as net income before interest expense, net, income tax expense, and depreciation and amortization (EBITDA) further adjusted for management fees and expense reimbursement, transaction costs, gains and losses on the disposal of assets, and stock-based compensation expense. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA and Adjusted EBITDA in the same manner.
Adjusted net income is defined as net income plus management fees, transactions costs and non-cash gains and losses resulting from the disposal of assets, minus related adjustments to income tax expense.
Pro-forma diluted share count gives historical effect to the additional 2,150,000 shares of our common stock issued in the IPO as if all shares had been outstanding as of December 28, 2013.
Adjusted earnings per pro-forma diluted share is defined as adjusted net income divided by pro-forma diluted share count.
Conference Call & Webcast
Charlie Morrison, President and Chief Executive Officer, and Mike Mravle, Chief Financial Officer, will host a conference call today to discuss fiscal fourth quarter and fiscal year 2015 financial results at 5:00 PM Eastern Time. The conference call can be accessed live over the phone by dialing (877) 407-0789 or for international callers by dialing (201) 689-8562. A replay will be available two hours after the call and can be accessed by dialing (877) 870-5176 or for international callers by dialing (858) 384-5517; the passcode is 13630183. The replay will be available through Thursday, March 10, 2016.
The conference call will also be webcast live and later archived on the investor relations section of Wingstop’s corporate website at ir.wingstop.com under the ‘News & Events’ section.
About Wingstop
Founded in 1994 and headquartered in Dallas, Texas, Wingstop Inc. (NASDAQ: WING) operates and franchises 845 restaurants across the United States, Mexico, Russia, Singapore, the Philippines, Indonesia, and the United Arab Emirates as of the end of the fiscal fourth quarter 2015. The Wing Experts’ menu features classic and boneless wings with 11 bold, distinctive flavors including Original Hot, Cajun, Atomic, Mild, Teriyaki, Lemon Pepper, Hawaiian, Garlic Parmesan, Hickory Smoked BBQ, Louisiana Rub and Mango Habanero. Wingstop’s wings are always cooked to order, sauced and tossed and served with a variety of house-made sides including Wingstop’s hand-cut, seasoned fries. For more information visit www.wingstop.com or www.wingstopfranchise.com. Become a fan of Wingstop by visiting facebook.com/Wingstop or twitter.com/wingstop.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP financial measures including those indicated above. By providing non-GAAP financial measures, together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. These measures are not intended to be considered in isolation or as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures used in this press release may be different from the measures used by other companies. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. In addition, the Current Report on Form 8-K furnished to the SEC concurrent with the issuance of this press release includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.
Forward-looking Information
Certain statements contained in this news release, as well as other information provided from time to time by Wingstop Inc. or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “guidance,” “anticipate,” “estimate,” “expect,” “forecast,” “project,” “plan,” “intend,” “believe,” “confident,” “may,” “should,” “can have,” “likely,” “future” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Examples of forward-looking statements in this news release include our fiscal year 2016 outlook for new restaurant openings, domestic same store sales growth, total revenue, SG&A expenses, adjusted EBITDA, adjusted net income, adjusted earnings per pro-forma diluted share and our diluted share count, as well as our anticipated potential domestic restaurant expansion opportunity and positioning to deliver sustainable and profitable growth.
Any such forward looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. Although we believe any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results and cause them to differ materially from those anticipated in any forward-looking statements. Please refer to the risk factors discussed in our Form 10-K for the year ended December 26, 2015, which can be found at the SEC’s website www.sec.gov. The discussion of these risks is specifically incorporated by reference into this news release.
Any forward-looking statement made by Wingstop Inc. in this press release speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Media Contact
Kristina Jorge
646-277-1234
wingstop@icrinc.com
Investor Contact
Raphael Gross
203-682-8253
raphael.gross@icrinc.com
WINGSTOP INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(amounts in thousands, except share and per share amounts)
December 26, 2015 | December 27, 2014 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 10,690 | $ | 9,723 | |||
Accounts receivable, net | 3,404 | 2,380 | |||||
Prepaid expenses and other current assets | 1,752 | 1,439 | |||||
Advertising fund assets, restricted | 3,774 | 3,170 | |||||
Total current assets | 19,620 | 16,712 | |||||
Property and equipment, net | 4,593 | 3,622 | |||||
Goodwill | 45,128 | 45,128 | |||||
Trademarks | 32,700 | 32,700 | |||||
Customer relationships, net | 18,296 | 19,668 | |||||
Other non-current assets | 805 | 997 | |||||
Total assets | $ | 121,142 | $ | 118,827 | |||
Liabilities and stockholders' deficit | |||||||
Current liabilities | |||||||
Accounts payable | $ | 1,360 | $ | 1,502 | |||
Other current liabilities | 7,436 | 6,895 | |||||
Current portion of debt | — | 4,869 | |||||
Advertising fund liabilities, restricted | 3,774 | 3,170 | |||||
Total current liabilities | 12,570 | 16,436 | |||||
Long-term debt, net of current | 95,500 | 88,852 | |||||
Deferred revenues, net of current | 7,623 | 7,159 | |||||
Deferred income tax liabilities, net | 13,018 | 13,842 | |||||
Other non-current liabilities | 2,104 | 1,532 | |||||
Total liabilities | 130,815 | 127,821 | |||||
Commitments and contingencies | |||||||
Stockholders' deficit | |||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 28,581,182 and 26,101,755 shares issued and outstanding as of December 26, 2015 and December 27, 2014, respectively | 286 | 261 | |||||
Additional paid-in-capital | 36,870 | 2,313 | |||||
Accumulated deficit | (46,829 | ) | (11,568 | ) | |||
Total stockholders' deficit | (9,673 | ) | (8,994 | ) | |||
Total liabilities and stockholders' deficit | $ | 121,142 | $ | 118,827 | |||
WINGSTOP INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(amounts in thousands, except per share data)
Thirteen Weeks Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Revenue: | |||||||
Royalty revenue and franchise fees | $ | 12,544 | $ | 10,745 | |||
Company-owned restaurant sales | 8,033 | 7,312 | |||||
Total revenue | 20,577 | 18,057 | |||||
Costs and expenses: | |||||||
Cost of sales (1) | 5,639 | 5,312 | |||||
Selling, general and administrative | 7,692 | 8,850 | |||||
Depreciation and amortization | 738 | 672 | |||||
Total costs and expenses | 14,069 | 14,834 | |||||
Operating income | 6,508 | 3,223 | |||||
Interest expense, net | 713 | 813 | |||||
Other (income) expense, net | 14 | 23 | |||||
Income before income tax expense | 5,781 | 2,387 | |||||
Income tax expense | 1,986 | 886 | |||||
Net income | $ | 3,795 | $ | 1,501 | |||
Earnings per share | |||||||
Basic | $ | 0.13 | $ | 0.06 | |||
Diluted | $ | 0.13 | $ | 0.06 | |||
Weighted average shares outstanding | |||||||
Basic | 28,581 | 26,018 | |||||
Diluted | 28,951 | 26,431 | |||||
(1) exclusive of depreciation and amortization, shown separately | |||||||
WINGSTOP INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(amounts in thousands, except per share data)
Year Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Revenue: | |||||||
Royalty revenue and franchise fees | $ | 46,688 | $ | 38,032 | |||
Company-owned restaurant sales | 31,281 | 29,417 | |||||
Total revenue | 77,969 | 67,449 | |||||
Costs and expenses: | |||||||
Cost of sales (1) | 22,219 | 20,473 | |||||
Selling, general and administrative | 33,350 | 26,006 | |||||
Depreciation and amortization | 2,682 | 2,904 | |||||
Total costs and expenses | 58,251 | 49,383 | |||||
Operating income | 19,718 | 18,066 | |||||
Interest expense, net | 3,477 | 3,684 | |||||
Other (income) expense, net | 396 | 84 | |||||
Income before income tax expense | 15,845 | 14,298 | |||||
Income tax expense | 5,739 | 5,312 | |||||
Net income | $ | 10,106 | $ | 8,986 | |||
Earnings per share | |||||||
Basic | $ | 0.37 | $ | 0.35 | |||
Diluted | $ | 0.36 | $ | 0.34 | |||
Weighted average shares outstanding | |||||||
Basic | 27,497 | 25,846 | |||||
Diluted | 27,816 | 26,204 | |||||
(1) exclusive of depreciation and amortization, shown separately | |||||||
WINGSTOP INC. AND SUBSIDIARIES
Unaudited Supplemental Information
Thirteen Weeks Ended | Year Ended | ||||||||||
December 26, 2015 | December 27, 2014 | December 26, 2015 | December 27, 2014 | ||||||||
Domestic Franchised Activity: | |||||||||||
Beginning of period | 737 | 628 | 652 | 569 | |||||||
Openings | 31 | 24 | 118 | 82 | |||||||
Closures | (1 | ) | — | (3 | ) | (4 | ) | ||||
Refranchised (*) | — | — | — | 5 | |||||||
Restaurants end of period | 767 | 652 | 767 | 652 | |||||||
Domestic Company-Owned Activity: | |||||||||||
Beginning of period | 19 | 19 | 19 | 24 | |||||||
Openings | — | — | — | — | |||||||
Closures | — | — | — | — | |||||||
Refranchised (*) | — | — | — | (5 | ) | ||||||
Restaurants end of period | 19 | 19 | 19 | 19 | |||||||
Total Domestic Restaurants | 786 | 671 | 786 | 671 | |||||||
International Franchised Activity: | |||||||||||
Beginning of period | 51 | 31 | 41 | 21 | |||||||
Openings | 9 | 9 | 24 | 20 | |||||||
Closures | (1 | ) | 1 | (6 | ) | — | |||||
Refranchised (*) | — | — | — | — | |||||||
Restaurants end of period | 59 | 41 | 59 | 41 | |||||||
Total System-wide Restaurants | 845 | 712 | 845 | 712 | |||||||
(*) Restaurants sold by us to a franchisee
WINGSTOP INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA
(Unaudited)
(in thousands)
Thirteen Weeks Ended | Year Ended | ||||||||||||||
December 26, 2015 | December 27, 2014 | December 26, 2015 | December 27, 2014 | ||||||||||||
Net income | $ | 3,795 | $ | 1,501 | $ | 10,106 | $ | 8,986 | |||||||
Interest expense, net | 713 | 813 | 3,477 | 3,684 | |||||||||||
Income tax expense | 1,986 | 886 | 5,739 | 5,312 | |||||||||||
Depreciation and amortization | 738 | 672 | 2,682 | 2,904 | |||||||||||
EBITDA | $ | 7,232 | $ | 3,872 | $ | 22,004 | $ | 20,886 | |||||||
Additional adjustments: | |||||||||||||||
Management fees (a) | — | 111 | 237 | 449 | |||||||||||
Management agreement termination fee (b) | — | — | 3,297 | — | |||||||||||
Transaction costs (c) | — | 1,193 | 2,186 | 2,169 | |||||||||||
Gains and losses on disposal of assets (d) | — | — | — | (86 | ) | ||||||||||
Stock-based compensation expense (e) | 663 | 638 | 1,155 | 960 | |||||||||||
Adjusted EBITDA | $ | 7,895 | $ | 5,814 | $ | 28,879 | $ | 24,378 | |||||||
(a) | Includes management fees and other out-of-pocket expenses paid to Roark Capital Management, LLC. |
(b) | Represents a one-time fee paid in consideration for the termination of our management agreement with Roark Capital Management during the second quarter of 2015 in connection with our initial public offering. There are no further obligations related to management fees paid to Roark Capital Management. |
(c) | Represents costs and expenses related to refinancings of our credit agreement and our initial public offering; all transaction costs are included in SG&A with the exception of $172,000 that is included in Other (income) expense, net. |
(d) | Represents non-cash gains and losses resulting from disposal of company-owned restaurants and associated goodwill impairment. |
(e) | Includes non-cash, stock-based compensation. |
WINGSTOP INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - Adjusted Net Income,
Pro-forma Diluted Shares and Adjusted EPS
(Unaudited)
(in thousands, except per share data)
Thirteen Weeks Ended | Year Ended | ||||||||||||||
December 26, 2015 | December 27, 2014 | December 26, 2015 | December 27, 2014 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 3,795 | $ | 1,501 | $ | 10,106 | $ | 8,986 | |||||||
Adjustments | |||||||||||||||
Management fees (a) | — | 111 | 237 | 449 | |||||||||||
Management agreement termination fee (b) | — | — | 3,297 | — | |||||||||||
Transaction costs (c) | — | 1,193 | 2,186 | 2,169 | |||||||||||
Gains and losses on disposal of assets (d) | — | — | — | (86 | ) | ||||||||||
Tax effect of adjustments (e) | — | (509 | ) | (2,201 | ) | (987 | ) | ||||||||
Adjusted net income | $ | 3,795 | $ | 2,296 | $ | 13,625 | $ | 10,531 | |||||||
Denominator: | |||||||||||||||
Weighted-average shares outstanding - diluted | 28,951 | 26,431 | 27,816 | 26,204 | |||||||||||
Adjustments | |||||||||||||||
Assumed issuance of shares in connection with the IPO (f) | — | 2,150 | 981 | 2,150 | |||||||||||
Pro-forma weighted-average shares outstanding - diluted | 28,951 | 28,581 | 28,797 | 28,354 | |||||||||||
Adjusted earnings per pro-forma diluted share | $ | 0.13 | $ | 0.08 | $ | 0.47 | $ | 0.37 | |||||||
(a) | Includes management fees and other out-of-pocket expenses paid to Roark Capital Management, LLC. |
(b) | Represents a one-time fee paid in consideration for the termination of our management agreement with Roark Capital Management during the second quarter of 2015 in connection with our initial public offering. There are no further obligations related to management fees paid to Roark Capital Management. |
(c) | Represents costs and expenses related to refinancings of our credit agreement and our initial public offering; all transaction costs are included in SG&A with the exception of $172,000 that is included in Other (income) expense, net. |
(d) | Represents non-cash gains and losses resulting from disposal of company-owned restaurants and associated goodwill impairment. |
(e) | Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at assumed effective tax rate of 38.6% and 39.0% for the periods ended December 26, 2015 and December 27, 2014, respectively, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions. |
(f) | Adjustment to give effect to shares issued in the Company’s initial public offering as if the shares were issued and outstanding as of December 28, 2013. |