Bloomin' Brands, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - RECAST OF NON-GAAP MEASURES TO CONFORM TO THE REVISED METHODOLOGY - February 17, 2017

Attached files

file filename
EX-99.1 - EXHIBIT 99.1 - EARNINGS PRESS RELEASE Q4 2016 - Bloomin' Brands, Inc.ex991-earningsq416pressrel.htm
8-K - FORM 8-K - Bloomin' Brands, Inc.form8-kq416earnings.htm
Exhibit 99.2

Based on a review of our non-GAAP presentations, we have determined that, commencing with our results for the first fiscal quarter of 2017, when presenting the non-GAAP measures Adjusted income from operations and the corresponding margins, Adjusted net income and Adjusted diluted earnings per share, we will no longer include adjustments for expenses incurred in connection with our remodel program or intangible amortization recorded as a result of the 2013 acquisition of our Brazil operations. Following is a recast of the historical comparable periods to be presented in our future filings to conform to the revised presentation:
TABLE ONE
BLOOMIN’ BRANDS, INC.
INCOME FROM OPERATIONS, NET INCOME AND DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATIONS
REVISED FISCAL YEAR 2016, 2015 AND 2014 PRESENTATION
(UNAUDITED)
 
FISCAL YEAR
(dollars in thousands, except per share amounts)
2016
 
2015
 
2014
Income from operations
$
127,606

 
$
230,925

 
$
191,964

Operating income margin
3.0
%
 
5.3
%
 
4.3
%
Adjustments:
 
 
 
 
 
Asset impairments and related costs
44,680

 
746

 
24,490

Restaurant relocations and related costs
8,971

 
3,185

 
249

Severance
5,463

 
—

 
9,045

Transaction-related expenses
1,910

 
1,294

 
1,347

Restaurant impairments and closing costs
45,806

 
33,507

 
26,841

Legal and contingent matters
2,340

 
5,843

 
(6,070
)
Payroll tax audit contingency
—

 
(5,587
)
 
—

Total income from operations adjustments
109,170

 
38,988

 
55,902

Adjusted income from operations
$
236,776

 
$
269,913

 
$
247,866

Adjusted operating income margin
5.6
%
 
6.2
%
 
5.6
%
 
 
 
 
 
 
Net income attributable to Bloomin’ Brands
$
41,748

 
$
127,327

 
$
91,090

Adjustments:
 
 
 
 
 
Income from operations adjustments
109,170

 
38,988

 
55,902

Loss on defeasance, extinguishment and modification of debt
26,998

 
2,956

 
11,092

(Gain) loss on disposal of business
(1,632
)
 
1,328

 
770

Total adjustments, before income taxes
134,536

 
43,272

 
67,764

Adjustment to provision for income taxes
(33,100
)
 
(13,669
)
 
(21,972
)
Net adjustments
101,436

 
29,603

 
45,792

Adjusted net income
$
143,184

 
$
156,930

 
$
136,882

 
 
 
 
 
 
Diluted earnings per share
$
0.37

 
$
1.01

 
$
0.71

Adjusted diluted earnings per share
$
1.25

 
$
1.25

 
$
1.07

 
 
 
 
 
 
Diluted weighted average common shares outstanding
114,311

 
125,585

 
128,317

____________________
Note: All adjustments are consistent with our existing methodology and are described in our earnings release for the thirteen weeks and fiscal year ended December 25, 2016 and prior SEC filings and earnings releases, except that (1) “Restaurant relocations and related costs” only includes costs associated with relocation programs and does not include costs associated with remodel programs and (2) there is no longer any adjustment for “Purchased intangibles amortization,” which was the item related to the 2013 acquisition of our Brazil operations.




TABLE TWO
BLOOMIN’ BRANDS, INC.
INCOME (LOSS) FROM OPERATIONS, NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE NON-GAAP RECONCILIATIONS
REVISED 2016 QUARTERLY PRESENTATION
(UNAUDITED)
 
THIRTEEN WEEKS ENDED
(dollars in thousands, except per share data)
MARCH 27, 2016
 
JUNE 26, 2016
 
SEPTEMBER 25, 2016
 
DECEMBER 25, 2016
Income (loss) from operations
$
86,684

 
$
13,333

 
$
31,734

 
$
(4,145
)
Operating income (loss) margin
7.4
%
 
1.2
%
 
3.2
%
 
(0.4
)%
Adjustments:
 
 
 
 
 
 
 
Restaurant impairments and closing costs
2,131

 
335

 
(685
)
 
44,371

Asset impairments and related costs
—

 
39,677

 
3,208

 
1,449

Restaurant relocations and related costs
356

 
550

 
1,141

 
6,924

Severance
1,135

 
737

 
—

 
3,591

Legal and contingent matters
—

 
—

 
—

 
2,340

Transaction-related expenses
572

 
(106
)
 
1,047

 
397

Total income from operations adjustments
4,194

 
41,193

 
4,711

 
59,072

Adjusted income from operations
$
90,878

 
$
54,526

 
$
36,445

 
$
54,927

Adjusted operating income margin
7.8
%
 
5.1
%
 
3.6
%
 
5.5
 %
 
 
 
 
 
 
 
 
Net income (loss) attributable to Bloomin’ Brands
$
34,475

 
$
(9,177
)
 
$
20,733

 
$
(4,283
)
Adjustments:
 
 
 
 
 
 
 
Income from operations adjustments
4,194

 
41,193

 
4,711

 
59,072

Loss on defeasance, extinguishment and modification of debt
26,580

 
—

 
418

 
—

(Gain) loss on disposal of business
—

 
—

 
(2,084
)
 
452

Total adjustments, before income taxes
30,774

 
41,193

 
3,045

 
59,524

Adjustment to provision for income taxes
(9,076
)
 
2,032

 
(2,337
)
 
(23,718
)
Net adjustments
21,698

 
43,225

 
708

 
35,806

Adjusted net income
$
56,173

 
$
34,048

 
$
21,441

 
$
31,523

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
$
0.29

 
$
(0.08
)
 
$
0.18

 
$
(0.04
)
Adjusted diluted earnings per share
$
0.47

 
$
0.29

 
$
0.19

 
$
0.29

 
 
 
 
 
 
 
 
Diluted weighted average common shares outstanding
120,776

 
116,343

 
112,430

 
107,696

____________________
Note: All adjustments are consistent with our existing methodology and are described in our earnings release for the thirteen weeks and fiscal year ended December 25, 2016 and prior SEC filings and earnings releases, except that (1) “Restaurant relocations and related costs” only includes costs associated with relocation programs and does not include costs associated with remodel programs and (2) there is no longer any adjustment for “Purchased intangibles amortization,” which was the item related to the 2013 acquisition of our Brazil operations.




TABLE THREE
BLOOMIN’ BRANDS, INC.
DILUTED EARNINGS (LOSS) PER SHARE NON-GAAP RECONCILIATIONS
REVISED ADJUSTED DILUTED EARNINGS PER SHARE IMPACT SUMMARY
(UNAUDITED)
 
THIRTEEN WEEKS ENDED
 
FISCAL YEAR
(shares in thousands)
MARCH 27, 2016
 
JUNE 26, 2016
 
SEPTEMBER 25, 2016
 
DECEMBER 25, 2016
 
2016
 
2015
 
2014
Adjusted diluted earnings per share - as reported
$
0.47

 
$
0.30

 
$
0.20

 
$
0.31

 
$
1.29

 
$
1.27

 
$
1.10

Remodels
—

 
—

 
(0.01
)
 
(0.01
)
 
(0.02
)
 
—

 
—

Brazil amortization
(0.01
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
(0.04
)
 
(0.03
)
 
(0.05
)
Taxes
0.01

 
—

 
0.01

 
—

 
0.02

 
0.01

 
0.02

Adjusted diluted earnings per share - revised
$
0.47

 
$
0.29

 
$
0.19

 
$
0.29

 
$
1.25

 
$
1.25

 
$
1.07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted weighted average common shares outstanding
120,776

 
116,343

 
112,430

 
107,696

 
114,311

 
125,585

 
128,317

____________________
Note: All adjustments are consistent with our existing methodology and are described in our earnings release for the thirteen weeks and fiscal year ended December 25, 2016 and prior SEC filings and earnings releases, except that (1) “Restaurant relocations and related costs” only includes costs associated with relocation programs and does not include costs associated with remodel programs and (2) there is no longer any adjustment for “Purchased intangibles amortization,” which was the item related to the 2013 acquisition of our Brazil operations.




Bloomin' Brands, Inc. Reports