Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal First Quarter Ended April 17, 2022


Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the fiscal first quarter ended April 17, 2022.

Results for the first quarter, as compared to the prior year as applicable, included the following:

First Quarter 2022 Financial Summary Compared to 2021

The following table presents financial highlights for the fiscal first quarter of 2022, compared to results from the same period in 2021:

 

 

Sixteen Weeks Ended

 

 

April 17, 2022

 

April 18, 2021

Total revenues (millions)(3)

 

$

395.6

 

 

$

326.3

 

Restaurant revenues (millions)

 

 

380.6

 

 

 

318.7

 

Net loss (millions)

 

 

(3.1

)

 

 

(8.7

)

Restaurant Level Operating Profit (millions)(2)

 

$

53.1

 

 

$

50.0

 

Restaurant Level Operating Profit Margin(2)

 

 

14.0

%

 

 

15.7

%

Adjusted EBITDA (millions)(1)

 

$

28.0

 

 

$

27.4

 

 

 

 

 

 

Loss per diluted share ($ per share)

 

$

(0.20

)

 

$

(0.56

)

Adjusted loss per diluted share ($ per share)(2)

 

$

(0.12

)

 

$

(0.30

)

______________________________________

(1)

See schedule III for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to Net loss.

(2)

See schedule I for a reconciliation of Adjusted loss per diluted share, a non-GAAP measure, to Loss per diluted share, and schedule II for a reconciliation of Restaurant level operating profit and Restaurant level operating profit margin, non-GAAP measures, to Loss from operations.

(3)

Includes $5.9 million due to change in estimate, gift card breakage revenue, which relates to the Company's re-evaluation of its estimated redemption pattern.

First Quarter 2022 Operating Results

Comparable restaurant revenue(4) increased 19.7% in the first quarter of 2022 compared to the same period a year ago, driven by a 12.8% increase in average Guest check and a 6.9% increase in Guest count. The increase in average Guest check resulted from a 6.0% increase in menu mix including incremental sales related to checks that include Donatos® pizza, a 5.4% increase in pricing, and a 1.4% decrease in discounts. The increase in menu mix was primarily driven by our limited time menu offerings and higher dine-in sales volumes.

The decrease in Net loss compared to 2021 was primarily due to a $61.9 million increase in restaurant revenue, partially offset by higher commodity and labor inflation, staffing costs, and marketing expenses. The increase in Adjusted EBITDA(2) was due to the aforementioned factors less the impact of Interest expense, Income tax benefits, Depreciation and amortization, and Other charges.

Paul J. B. Murphy III, Red Robin's President and Chief Executive Officer, said, "We are continuing to drive meaningful financial growth through our long-term, strategic investments. We have now added Donatos® pizza to almost half our Company restaurants, and in the first quarter we generated total pizza sales of more than $7 million and checks with pizza were higher on average by more than $10. Our integrated and seamless digital ecosystem, which includes a newly designed website and the recent launch of our first app, will drive trial and frequency as we increase marketing to a broader audience during the second quarter and beyond. Lastly, we are also communicating more effectively with our growing Red Robin Royalty® members, now totaling 10.6 million, through a new loyalty platform that is yielding all time high guest engagement by enhancing our capabilities to personalize offers and deliver compelling campaigns."

Murphy concluded, "While we are keeping a keen eye on industry challenges and the macroeconomic environment, we are pleased with the current trajectory of our business. Our innovative limited time product promotions are driving higher guest traffic and incremental check margin, while our off-premises sales dollars have remained consistent. Operationally, we are focused on optimizing staffing while delivering a consistently great guest experience, creating incremental sales opportunities as we move forward."

Outlook for 2022 and Guidance Policy

The Company provides guidance of select information related to the Company's financial and operating performance, and such measures may differ from year to year.

The Company reiterated the following guidance for full year 2022:

We continue to expect pricing in the mid-single digits during 2022, along with other operating initiatives underway, to mitigate cost inflation. We also continue to expect margin pressures to persist during 2022 and improve through the year with increased staffing and dine-in sales, and to achieve a 2019 restaurant-level operating profit margin in 2023.

Due to the impact of geopolitical events and their impacts on the macroeconomic environment during 2022, the Company is updating its commodity cost inflation guidance for full year 2022 to low double digit inflation, up from our previous guidance of mid-to-high single digits.

(1)

Please refer to the Reconciliation of Net Loss to EBITDA and Adjusted EBITDA included on Schedule III of this release. The Company has not provided a reconciliation of its Adjusted EBITDA outlook to the most comparable GAAP measure of Net loss. Providing Net loss guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in Net loss, including asset impairments and income tax valuation adjustments. The reconciliations of Adjusted EBITDA to Net loss for the historical periods presented below are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.

Investor Conference Call and Webcast

Red Robin will host an investor conference call to discuss its first quarter 2022 results today at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (201)-689-8560. A replay will be available from approximately two hours after the end of the call and can be accessed by dialing (412)-317-6671; the conference ID is 13728550. The replay will be available through Thursday, June 2, 2022.

The call will be webcast live from the Company's website at ir.redrobin.com/news-events/ir-calendar, and later archived.

About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)

Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to Guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos® pizza at select locations. It's now easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering, or you can download our new app for easy customization, access to the Red Robin Royalty® dashboard and more. There are more than 520 Red Robin restaurants across the United States and Canada, including those operating under franchise agreements. Red Robin... YUMMM®!

Forward-Looking Statements

Forward-looking statements in this press release regarding the Company's future performance; anticipated uses of capital and planned investments in growth platforms; continued Guest demand for dine-in and off-premise offerings; the impact of industry labor and supply chain challenges and inflationary pressures; statements under the heading "Outlook for 2022 and Guidance Policy," including with respect to commodity and labor cost inflation; selling, general and administrative costs; adjusted EBITDA; capital expenditures including investment in our restaurants and systems, new restaurant growth, continued Donatos® expansion; pricing expectations for 2022; and our ability to mitigate cost inflation; and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as "expect," "believe," "anticipate," "intend," "plan," "project," "could," "should," "will," "outlook" or "estimate," or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the impact of COVID-19 and new variants on our results of operations, staffing levels, supply chain, and liquidity; the effectiveness of the Company's strategic initiatives, including alternative labor and service models, and operational improvement initiatives and our ability to execute on such strategic initiatives; our ability to recruit, staff, train, and retain our workforce; the effectiveness and timing of the Company's marketing strategies and promotions; menu changes and pricing strategy; the anticipated sales growth, costs, and timing of the Donatos® expansion; the implementation, rollout, and timing of new technology solutions, including off-premises enhancements; our ability to achieve revenue and cost savings from off-premises sales and other initiatives; competition in the casual dining market and discounting by competitors; changes in consumer spending trends and habits; changes in the availability and cost of food products, labor, and energy; general economic and operating conditions, including changes in consumer disposable income, weather conditions, and other events affecting the regions where our restaurants are operated; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, consumer and occupational health and safety regulations, health insurance coverage and other benefits, nutritional disclosures, and employment eligibility-related documentation requirements; costs and other effects of legal claims by Team Members, franchisees, customers, vendors, stockholders, and others, including negative publicity regarding food safety or cyber security; and other risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.

RED ROBIN GOURMET BURGERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Sixteen Weeks Ended

 

 

April 17, 2022

 

April 18, 2021

Revenues:

 

 

 

 

Restaurant revenue

 

$

380,612

 

 

$

318,677

 

Franchise royalties, fees, and other revenue

 

 

14,938

 

 

 

7,598

 

Total revenues

 

 

395,550

 

 

 

326,275

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

Restaurant operating costs (exclusive of depreciation

and amortization shown separately below):

 

 

 

 

Cost of sales

 

 

90,941

 

 

 

69,166

 

Labor

 

 

138,108

 

 

 

111,659

 

Other operating

 

 

67,864

 

 

 

57,712

 

Occupancy

 

 

30,599

 

 

 

30,100

 

Depreciation and amortization

 

 

23,919

 

 

 

25,888

 

General and administrative

 

 

25,043

 

 

 

22,255

 

Selling

 

 

9,337

 

 

 

8,355

 

Pre-opening costs and acquisition costs

 

 

62

 

 

 

?

 

Other charges

 

 

5,307

 

 

 

5,471

 

Total costs and expenses

 

 

391,180

 

 

 

330,606

 

 

 

 

 

 

Income (loss) from operations

 

 

4,370

 

 

 

(4,331

)

 

 

 

 

 

Other expense:

 

 

 

 

Interest expense, net and other

 

 

7,413

 

 

 

4,330

 

 

 

 

 

 

Loss before income taxes

 

 

(3,043

)

 

 

(8,661

)

Income tax provision

 

 

62

 

 

 

52

 

Net loss

 

$

(3,105

)

 

$

(8,713

)

Loss per share:

 

 

 

 

Basic

 

$

(0.20

)

 

$

(0.56

)

Diluted

 

$

(0.20

)

 

$

(0.56

)

Weighted average shares outstanding:

 

 

 

 

Basic

 

 

15,748

 

 

 

15,579

 

Diluted

 

 

15,748

 

 

 

15,579

 

RED ROBIN GOURMET BURGERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

April 17, 2022

 

December 26, 2021

Assets:

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

33,772

 

 

$

22,750

 

Accounts receivable, net

 

 

12,551

 

 

 

21,400

 

Inventories

 

 

25,232

 

 

 

25,219

 

Income tax receivable

 

 

13,245

 

 

 

15,824

 

Prepaid expenses and other current assets

 

 

15,080

 

 

 

16,963

 

Restricted cash

 

 

8,151

 

 

 

?

 

Total current assets

 

 

108,031

 

 

 

102,156

 

Property and equipment, net

 

 

371,840

 

 

 

386,336

 

Operating lease assets

 

 

389,983

 

 

 

400,825

 

Intangible assets, net

 

 

20,472

 

 

 

21,292

 

Other assets, net

 

 

16,210

 

 

 

18,389

 

Total assets

 

$

906,536

 

 

$

928,998

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$

31,572

 

 

$

32,510

 

Accrued payroll and payroll related liabilities

 

 

34,727

 

 

 

32,584

 

Unearned revenue

 

 

37,986

 

 

 

54,214

 

Current portion of operating lease liabilities

 

 

48,297

 

 

 

48,842

 

Current portion of long-term debt

 

 

2,000

 

 

 

9,692

 

Accrued liabilities and other

 

 

47,514

 

 

 

45,458

 

Total current liabilities

 

 

202,096

 

 

 

223,300

 

Long-term debt

 

 

192,426

 

 

 

167,263

 

Long-term portion of operating lease liabilities

 

 

420,648

 

 

 

435,136

 

Other non-current liabilities

 

 

14,509

 

 

 

26,325

 

Total liabilities

 

 

829,679

 

 

 

852,024

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

Common stock; $0.001 par value: 45,000 shares authorized; 20,449 shares issued; 15,786 and 15,722 shares outstanding as of April 17, 2022 and December 26, 2021

 

 

20

 

 

 

20

 

Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of April 17, 2022 and December 26, 2021

 

 

?

 

 

 

?

 

Treasury stock, 4,663 and 4,727 shares, at cost as of April 17, 2022 and December 26, 2021

 

 

(190,022

)

 

 

(192,803

)

Paid-in capital

 

 

242,756

 

 

 

242,560

 

Accumulated other comprehensive income (loss), net of tax

 

 

12

 

 

 

1

 

Retained earnings

 

 

24,091

 

 

 

27,196

 

Total stockholders' equity

 

 

76,857

 

 

 

76,974

 

Total liabilities and stockholders' equity

 

$

906,536

 

 

$

928,998

 

Schedule I

Reconciliation of Non-GAAP Results to GAAP Results
(In thousands, except per share data, unaudited)

In addition to the results provided in accordance with Generally Accepted Accounting Principles ("GAAP") throughout this press release, the Company has provided Adjusted net loss, Adjusted loss per share - basic, and Adjusted loss per share - diluted, which are non-GAAP measurements which present the sixteen weeks ended April 17, 2022 and April 18, 2021 Net loss and basic and diluted loss per share, excluding the effects of material changes in accounting estimate, restaurant asset impairment, write-off of unamortized debt issuance costs, litigation contingencies, restaurant closure costs, other financing costs, COVID-19 related costs, board and stockholder matters costs, and related income tax effects. The Company believes the presentation of net loss and loss per share exclusive of the identified items gives the reader additional insight into the ongoing operational results of the Company. Management believes this supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein. Income tax effect of reconciling items was calculated based on the change in the total tax provision calculation after adjusting for the identified item. The non-GAAP measurements are intended to supplement the presentation of the Company's financial results in accordance with GAAP.

 

 

Sixteen Weeks Ended

 

 

April 17, 2022

 

April 18, 2021

Net loss as reported

 

$

(3,105

)

 

$

(8,713

)

Change in estimate, gift card breakage revenue, net of commissions(1)

 

 

(5,246

)

 

 

Restaurant asset impairment

 

 

2,122

 

 

 

1,242

 

Write-off of unamortized debt issuance costs(2)

 

 

1,727

 

 

 

?

 

Litigation contingencies

 

 

1,720

 

 

 

1,085

 

Restaurant closure costs

 

 

949

 

 

 

2,447

 

Other financing costs(3)

 

 

309

 

 

 

?

 

COVID-19 related costs

 

 

207

 

 

 

569

 

Board and stockholder matter costs

 

 

?

 

 

 

128

 

Income tax effect

 

 

(465

)

 

 

(1,422

)

Adjusted net loss

 

$

(1,782

)

 

$

(4,664

)

 

 

 

 

 

Loss per share - basic:

 

 

 

 

Net loss as reported

 

$

(0.20

)

 

$

(0.56

)

Change in estimate, gift card breakage revenue, net of commissions(1)

 

 

(0.33

)

 

 

?

 

Restaurant asset impairment

 

 

0.13

 

 

 

0.08

 

Write-off of unamortized debt issuance costs(2)

 

 

0.11

 

 

 

?

 

Litigation contingencies

 

 

0.11

 

 

 

0.07

 

Restaurant closure costs

 

 

0.06

 

 

 

0.16

 

Other financing costs(3)

 

 

0.02

 

 

 

?

 

COVID-19 related costs

 

 

0.01

 

 

 

0.03

 

Board and stockholder matter costs

 

 

?

 

 

 

0.01

 

Income tax effect

 

 

(0.03

)

 

 

(0.09

)

Adjusted loss per share - basic

 

$

(0.12

)

 

$

(0.30

)

 

 

 

 

 

Loss per share - diluted:

 

 

 

 

Net loss as reported

 

$

(0.20

)

 

$

(0.56

)

Change in estimate, gift card breakage revenue, net of commissions(1)

 

 

(0.33

)

 

 

?

 

Restaurant asset impairment

 

 

0.13

 

 

 

0.08

 

Write-off of unamortized debt issuance costs(2)

 

 

0.11

 

 

 

?

 

Litigation contingencies

 

 

0.11

 

 

 

0.07

 

Restaurant closure costs

 

 

0.06

 

 

 

0.16

 

Other financing costs(3)

 

 

0.02

 

 

 

?

 

COVID-19 related costs

 

 

0.01

 

 

 

0.03

 

Board and stockholder matter costs

 

 

?

 

 

 

0.01

 

Income tax effect

 

 

(0.03

)

 

 

(0.09

)

Adjusted loss per share - diluted

 

$

(0.12

)

 

$

(0.30

)

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

Basic

 

 

15,748

 

 

 

15,579

 

Diluted

 

 

15,748

 

 

 

15,579

 

(1)   

Change in estimate, gift card gift card breakage revenue, net of commission relates to the Company's re-evaluation of its estimated redemption pattern. The impact comprises $5.9 million included in Franchise royalties, fees, and other revenue partially offset by $0.6 million in gift card commission costs included in Selling on the Condensed Consolidated Statements of Operations.

(2)   

Write-off of unamortized debt issuance costs related to the remaining unamortized debt issuance costs related to our legacy credit agreement with the completion of the refinancing of our Credit Agreement in the first quarter of fiscal year 2022.

(3)   

Other financing costs includes legal and other charges related to the refinancing of our Credit Agreement in the first quarter of fiscal year 2022.

Schedule II

Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Restaurant revenues, Loss
from Operations and Net Loss
(In thousands, unaudited)

The Company believes restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenue minus restaurant-level operating costs, excluding restaurant impairment and closure costs. The measure includes restaurant-level occupancy costs that include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation related to restaurant equipment, buildings, and leasehold improvements. The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general, and administrative costs, and therefore excludes costs associated with selling, general, and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded, because, similar to depreciation and amortization, they represent a non-cash charge for the Company's investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to loss from operations or net loss as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies in the Company's industry. The table below sets forth certain unaudited information for the sixteen weeks ended April 17, 2022, and April 18, 2021 expressed as a percentage of total revenues, except for the components of restaurant-level operating profit that are expressed as a percentage of restaurant revenue.

 

 

Sixteen Weeks Ended

 

 

April 17, 2022

 

April 18, 2021

Restaurant revenues

 

$

380,612

 

 

96.2

%

 

$

318,677

 

 

97.7

%

Restaurant operating costs(1):

 

 

 

 

Cost of sales

 

 

90,941

 

 

23.9

 

 

 

69,166

 

 

21.7

 

Labor

 

 

138,108

 

 

36.3

 

 

 

111,659

 

 

35.0

 

Other operating

 

 

67,864

 

 

17.8

 

 

 

57,712

 

 

18.1

 

Occupancy

 

 

30,599

 

 

8.0

 

 

 

30,100

 

 

9.4

 

Restaurant-level operating profit

 

 

53,100

 

 

14.0

%

 

 

50,040

 

 

15.7

%

 

 

 

 

 

 

 

 

 

Add ? Franchise royalties, fees, and other revenue

 

 

14,938

 

 

3.8

%

 

 

7,598

 

 

2.3

%

Deduct ? other operating:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

23,919

 

 

6.0

 

 

 

25,888

 

 

7.9

 

General and administrative expenses

 

 

25,043

 

 

6.3

 

 

 

22,255

 

 

6.8

 

Selling

 

 

9,337

 

 

2.4

 

 

 

8,355

 

 

2.6

 

Pre-opening & acquisition costs

 

 

62

 

 

?

 

 

 

?

 

 

?

 

Other charges

 

 

5,307

 

 

1.3

 

 

 

5,471

 

 

1.7

 

Total other operating

 

 

63,668

 

 

16.1

%

 

 

61,969

 

 

19.0

%

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

4,370

 

 

1.1

%

 

 

(4,331

)

 

(1.3

)%

 

 

 

 

 

 

 

 

 

Interest expense, net and other

 

 

7,413

 

 

1.9

 

 

 

4,330

 

 

1.3

 

Income tax provision

 

 

62

 

 

?

 

 

 

52

 

 

?

 

Total other

 

 

7,475

 

 

1.9

 

 

 

4,382

 

 

1.3

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,105

)

 

(0.8

)%

 

$

(8,713

)

 

(2.7

)%

________________________________________

(1)   

Excluding depreciation and amortization, which is shown separately.

   

Certain percentage amounts in the table above do not total due to rounding as well as the fact that components of restaurant-level operating profit are expressed as a percentage of restaurant revenue and not total revenues.

Schedule III

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
(In thousands, unaudited)

The Company defines EBITDA as net loss before interest expense, income taxes, and depreciation and amortization. EBITDA and adjusted EBITDA are presented because the Company believes investors' understanding of its performance is enhanced by including these non-GAAP financial measures as a reasonable basis for evaluating its ongoing results of operations excluding the effects of material change in estimate, asset impairment, litigation contingencies, board and stockholder matters costs, restaurant closure and refranchising costs, other financing costs, and COVID-19 related costs. EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net loss or cash flow from operations, as determined by GAAP, and the Company's calculation thereof may not be comparable to that reported by other companies in its industry or otherwise. Adjusted EBITDA further adjusts EBITDA to reflect the additions and eliminations shown in the table below. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to the Company's performance based on its GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and the Company's presentation of adjusted EBITDA should not be construed as an inference that its future results will be unaffected by excluded or unusual items. The Company has not provided a reconciliation of its adjusted EBITDA outlook to the most comparable GAAP measure of Net loss. Providing Net loss guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in Net loss, including asset impairments and income tax valuation adjustments. The reconciliations of adjusted EBITDA to Net loss for the historical periods presented below are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.

 

Sixteen Weeks Ended

 

April 17, 2022

 

April 18, 2021

Net loss as reported

$

(3,105

)

 

$

(8,713

)

Interest expense, net

 

7,089

 

 

 

4,677

 

Income tax benefit

 

62

 

 

 

52

 

Depreciation and amortization

 

23,918

 

 

 

25,888

 

EBITDA

$

27,964

 

 

$

21,904

 

 

 

 

 

Change in accounting estimate, gift card breakage(1)

$

(5,246

)

 

$

?

 

Asset impairment

 

2,122

 

 

 

1,242

 

Litigation contingencies

 

1,720

 

 

 

1,085

 

Restaurant closure costs

 

949

 

 

 

2,447

 

Other financing costs(2)

 

309

 

 

 

?

 

COVID-19 related costs

 

207

 

 

 

569

 

Board and stockholder matter costs

 

?

 

 

 

128

 

Adjusted EBITDA

$

28,025

 

 

$

27,375

 

________________________________________

(1)   

Change in estimate, gift card gift card breakage revenue, net of commission relates to the Company's re-evaluation of its estimated redemption pattern. The impact comprises $5.9 million included in Franchise royalties, fees, and other revenue partially offset by $0.6 million in gift card commission costs included in Selling on the Condensed Consolidated Statements of Operations.

(2)   

Other financing costs includes legal and other charges related to the refinancing of our Credit Facility in the first quarter of fiscal year 2022.

 


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