Shake Shack Announces Third Quarter 2022 Financial Results
Shake Shack reported third-quarter 2022 total revenue of $227.8 million, an increase of 17.5% compared to 2021, with $219.5 million from Shack sales and $8.3 million from licensing. System-wide sales rose to $353.2 million (+18.3%). Same-Shack sales grew 6.3%. However, the company experienced an operating loss of $4.8 million and a net loss of $2.3 million, equating to a loss of $0.05 per share. Shake Shack opened 2 new domestic and 6 licensed Shacks, including in China and Korea.
- Revenue of $227.8 million, up 17.5% year-over-year.
- System-wide sales increased 18.3% to $353.2 million.
- Same-Shack sales rose by 6.3%.
- Opened 2 new domestic and 6 licensed Shacks.
- Operating loss of $4.8 million.
- Net loss of $2.3 million, or a loss of $0.05 per share.
-
Total revenue of
$227.8 million 17.5% versus 2021, including$219.5 million $8.3 million -
System-wide sales of
$353.2 million 18.3% versus 2021. -
Same-Shack sales up
6.3% versus 2021. -
Operating loss of
$4.8 million -
Shack-level operating profit(1) of
$35.8 million 16.3% of Shack sales.
-
Shack-level operating profit(1) of
-
Net loss of
$2.3 million -
Adjusted EBITDA(1) of
$19.5 million
-
Adjusted EBITDA(1) of
-
Net loss attributable to
Shake Shack Inc. of$2.0 million $0.05 -
Adjusted pro forma net loss(1) of
$2.3 million $0.06
-
Adjusted pro forma net loss(1) of
-
Opened 2 new domestic Company-operated Shacks. Opened 6 new licensed Shacks, including locations in
China andKorea .
The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.
(1) |
Shack-level operating profit, Adjusted EBITDA and Adjusted pro forma net income (loss) are non-GAAP measures. A reconciliation to the most directly comparable financial measures presented in accordance with GAAP is set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures” below. |
About
Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.
Definitions
The following definitions apply to these terms as used in this release:
"Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income and
“System-wide sales” is an operating measure and consists of sales from the Company's domestic Company-operated Shacks, domestic licensed Shacks and international licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from domestic and international licensed Shacks, as well as certain up-front fees, such as territory fees and opening fees.
"Same-Shack sales" represents Shack sales for the comparable Shack base, which is defined as the number of domestic Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.
"Shack-level operating profit," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.
"Shack-level operating profit margin," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales.
“EBITDA,” a non-GAAP measure, is defined as Net income (loss) before interest expense (net of interest income), Income tax expense (benefit), and Depreciation and amortization expense.
“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, deferred lease costs, Impairment and loss on disposal of assets, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
"Adjusted pro forma net income," a non-GAAP measure, represents Net income (loss) attributable to
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
(in thousands, except share and per share amounts) |
|||||||
|
|
|
|||||
ASSETS |
|
|
|||||
Current assets: |
|
|
|||||
Cash and cash equivalents |
$ |
256,998 |
|
$ |
302,406 |
||
Marketable securities |
|
80,015 |
|
|
80,000 |
||
Accounts receivable, net |
|
11,800 |
|
|
13,657 |
||
Inventories |
|
3,996 |
|
|
3,850 |
||
Prepaid expenses and other current assets |
|
14,246 |
|
|
9,763 |
||
Total current assets |
|
367,055 |
|
|
409,676 |
||
Property and equipment, net of accumulated depreciation of |
|
441,870 |
|
|
389,386 |
||
Operating lease assets |
|
370,536 |
|
|
347,277 |
||
Deferred income taxes, net |
|
306,976 |
|
|
298,668 |
||
Other assets |
|
15,330 |
|
|
12,563 |
||
TOTAL ASSETS |
$ |
1,501,767 |
|
$ |
1,457,570 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|||||
Current liabilities: |
|
|
|||||
Accounts payable |
$ |
17,210 |
|
$ |
19,947 |
||
Accrued expenses |
|
49,387 |
|
|
36,892 |
||
Accrued wages and related liabilities |
|
17,758 |
|
|
14,638 |
||
Operating lease liabilities, current |
|
40,690 |
|
|
35,519 |
||
Other current liabilities |
|
19,497 |
|
|
14,501 |
||
Total current liabilities |
|
144,542 |
|
|
121,497 |
||
Long-term debt |
|
244,328 |
|
|
243,542 |
||
Long-term operating lease liabilities |
|
429,165 |
|
|
400,113 |
||
Liabilities under tax receivable agreement, net of current portion |
|
234,892 |
|
|
234,045 |
||
Other long-term liabilities |
|
20,588 |
|
|
22,773 |
||
Total liabilities |
|
1,073,515 |
|
|
1,021,970 |
||
Commitments and contingencies |
|
|
|||||
Stockholders' equity: |
|
|
|||||
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of |
|
— |
|
|
— |
||
Class A common stock,
39,142,397 shares issued and outstanding as of |
|
39 |
|
|
39 |
||
Class B common stock,
2,921,587 shares issued and outstanding as of |
|
3 |
|
|
3 |
||
Additional paid-in capital |
|
413,274 |
|
|
405,940 |
||
Retained earnings (accumulated deficit) |
|
(9,820 |
) |
|
3,554 |
||
Accumulated other comprehensive income (loss) |
|
(1 |
) |
|
1 |
||
Total stockholders' equity attributable to |
|
403,495 |
|
|
409,537 |
||
Non-controlling interests |
|
24,757 |
|
|
26,063 |
||
Total equity |
|
428,252 |
|
|
435,600 |
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
1,501,767 |
|
$ |
1,457,570 |
||
|
||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
||||||||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||||||||||||||
|
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||
Shack sales |
$ |
219,501 |
|
96.4 |
% |
$ |
186,972 |
|
96.4 |
% |
$ |
639,346 |
|
96.6 |
% |
$ |
519,110 |
|
96.7 |
% |
||||||||
Licensing revenue |
|
8,313 |
|
3.6 |
% |
|
6,923 |
|
3.6 |
% |
|
22,611 |
|
3.4 |
% |
|
17,527 |
|
3.3 |
% |
||||||||
TOTAL REVENUE |
|
227,814 |
|
100.0 |
% |
|
193,895 |
|
100.0 |
% |
|
661,957 |
|
100.0 |
% |
|
536,637 |
|
100.0 |
% |
||||||||
Shack-level operating expenses(1): |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Food and paper costs |
|
67,774 |
|
30.9 |
% |
|
57,925 |
|
31.0 |
% |
|
193,645 |
|
30.3 |
% |
|
157,472 |
|
30.3 |
% |
||||||||
Labor and related expenses |
|
64,638 |
|
29.4 |
% |
|
58,208 |
|
31.1 |
% |
|
190,954 |
|
29.9 |
% |
|
157,221 |
|
30.3 |
% |
||||||||
Other operating expenses |
|
33,966 |
|
15.5 |
% |
|
26,613 |
|
14.2 |
% |
|
96,766 |
|
15.1 |
% |
|
74,032 |
|
14.3 |
% |
||||||||
Occupancy and related expenses |
|
17,337 |
|
7.9 |
% |
|
14,640 |
|
7.8 |
% |
|
50,270 |
|
7.9 |
% |
|
43,427 |
|
8.4 |
% |
||||||||
General and administrative expenses |
|
26,645 |
|
11.7 |
% |
|
20,504 |
|
10.6 |
% |
|
87,040 |
|
13.1 |
% |
|
60,435 |
|
11.3 |
% |
||||||||
Depreciation and amortization expense |
|
18,647 |
|
8.2 |
% |
|
15,183 |
|
7.8 |
% |
|
53,589 |
|
8.1 |
% |
|
43,381 |
|
8.1 |
% |
||||||||
Pre-opening costs |
|
3,041 |
|
1.3 |
% |
|
2,933 |
|
1.5 |
% |
|
8,576 |
|
1.3 |
% |
|
8,767 |
|
1.6 |
% |
||||||||
Impairment and loss on disposal of assets |
|
592 |
|
0.3 |
% |
|
535 |
|
0.3 |
% |
|
1,697 |
|
0.3 |
% |
|
1,262 |
|
0.2 |
% |
||||||||
TOTAL EXPENSES |
|
232,640 |
|
102.1 |
% |
|
196,541 |
|
101.4 |
% |
|
682,537 |
|
103.1 |
% |
|
545,997 |
|
101.7 |
% |
||||||||
LOSS FROM OPERATIONS |
|
(4,826 |
) |
(2.1 |
)% |
|
(2,646 |
) |
(1.4 |
)% |
|
(20,580 |
) |
(3.1 |
)% |
|
(9,360 |
) |
(1.7 |
)% |
||||||||
Other income, net |
|
1,482 |
|
0.7 |
% |
|
18 |
|
— |
% |
|
1,731 |
|
0.3 |
% |
|
157 |
|
— |
% |
||||||||
Interest expense |
|
(475 |
) |
(0.2 |
)% |
|
(350 |
) |
(0.2 |
)% |
|
(1,145 |
) |
(0.2 |
)% |
|
(1,224 |
) |
(0.2 |
)% |
||||||||
LOSS BEFORE INCOME TAXES |
|
(3,819 |
) |
(1.7 |
)% |
|
(2,978 |
) |
(1.5 |
)% |
|
(19,994 |
) |
(3.0 |
)% |
|
(10,427 |
) |
(1.9 |
)% |
||||||||
Benefit from income taxes |
|
(1,508 |
) |
(0.7 |
)% |
|
(576 |
) |
(0.3 |
)% |
|
(5,098 |
) |
(0.8 |
)% |
|
(10,665 |
) |
(2.0 |
)% |
||||||||
NET INCOME (LOSS) |
|
(2,311 |
) |
(1.0 |
)% |
|
(2,402 |
) |
(1.2 |
)% |
|
(14,896 |
) |
(2.3 |
)% |
|
238 |
|
— |
% |
||||||||
Less: Net loss attributable to non-controlling interests |
|
(287 |
) |
(0.1 |
)% |
|
(224 |
) |
(0.1 |
)% |
|
(1,522 |
) |
(0.2 |
)% |
|
(837 |
) |
(0.2 |
)% |
||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO SHAKE SHACK INC. |
$ |
(2,024 |
) |
(0.9 |
)% |
$ |
(2,178 |
) |
(1.1 |
)% |
$ |
(13,374 |
) |
(2.0 |
)% |
$ |
1,075 |
|
0.2 |
% |
||||||||
Earnings (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Basic |
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.34 |
) |
|
$ |
0.03 |
|
|
||||||||||||
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.34 |
) |
|
$ |
0.01 |
|
|
||||||||||||
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Basic |
|
39,274 |
|
|
|
39,137 |
|
|
|
39,221 |
|
|
|
39,066 |
|
|
||||||||||||
Diluted |
|
39,274 |
|
|
|
39,137 |
|
|
|
39,221 |
|
|
|
43,448 |
|
|
||||||||||||
| ___________________ | ||
(1) |
As a percentage of Shack sales. |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(UNAUDITED) |
||||||||
(in thousands) |
||||||||
|
Thirty-Nine Weeks Ended |
|||||||
|
|
|
||||||
OPERATING ACTIVITIES |
|
|
||||||
Net income (loss) (including amounts attributable to non-controlling interests) |
$ |
(14,896 |
) |
$ |
238 |
|
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
||||||
Depreciation and amortization expense |
|
53,589 |
|
|
43,381 |
|
||
Amortization of debt issuance costs |
|
786 |
|
|
605 |
|
||
Amortization of cloud computing asset |
|
1,080 |
|
|
935 |
|
||
Non-cash operating lease cost |
|
43,159 |
|
|
37,213 |
|
||
Equity-based compensation |
|
10,155 |
|
|
5,963 |
|
||
Deferred income taxes |
|
12,215 |
|
|
9,708 |
|
||
Loss on sale of marketable securities |
|
— |
|
|
5 |
|
||
Non-cash interest expense |
|
181 |
|
|
348 |
|
||
Impairment and loss on disposal of assets |
|
1,697 |
|
|
1,262 |
|
||
Unrealized loss on equity securities |
|
400 |
|
|
117 |
|
||
Other non-cash income |
|
(2 |
) |
|
(2 |
) |
||
Changes in operating assets and liabilities: |
|
|
||||||
Accounts receivable |
|
1,840 |
|
|
(1,847 |
) |
||
Inventories |
|
(146 |
) |
|
(637 |
) |
||
Prepaid expenses and other current assets |
|
(4,767 |
) |
|
4,233 |
|
||
Other assets |
|
(5,966 |
) |
|
(767 |
) |
||
Accounts payable |
|
(2,069 |
) |
|
(6,780 |
) |
||
Accrued expenses |
|
(17,783 |
) |
|
(18,682 |
) |
||
Accrued wages and related liabilities |
|
3,052 |
|
|
3,709 |
|
||
Other current liabilities |
|
4,376 |
|
|
(2,202 |
) |
||
Long-term operating lease liabilities |
|
(32,558 |
) |
|
(31,886 |
) |
||
Other long-term liabilities |
|
(10 |
) |
|
(1,174 |
) |
||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
54,333 |
|
|
43,740 |
|
||
INVESTING ACTIVITIES |
|
|
||||||
Purchases of property and equipment |
|
(94,797 |
) |
|
(68,852 |
) |
||
Purchases of marketable securities |
|
(415 |
) |
|
(47,321 |
) |
||
Sales of marketable securities |
|
— |
|
|
4,004 |
|
||
|
|
(95,212 |
) |
|
(112,169 |
) |
||
FINANCING ACTIVITIES |
|
|
||||||
Proceeds from issuance of convertible notes, net of discount |
|
— |
|
|
243,750 |
|
||
Deferred financing costs |
|
— |
|
|
(123 |
) |
||
Payments on principal of finance leases |
|
(2,260 |
) |
|
(1,982 |
) |
||
Distributions paid to non-controlling interest holders |
|
(389 |
) |
|
(878 |
) |
||
Debt issuance costs |
|
— |
|
|
(968 |
) |
||
Proceeds from stock option exercises |
|
334 |
|
|
6,688 |
|
||
Employee withholding taxes related to net settled equity awards |
|
(2,214 |
) |
|
(3,510 |
) |
||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
(4,529 |
) |
|
242,977 |
|
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
(45,408 |
) |
|
174,548 |
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
302,406 |
|
|
146,873 |
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
256,998 |
|
$ |
321,421 |
|
||
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
To supplement the consolidated financial statements, which are prepared and presented in accordance with
Shack-Level Operating Profit
Shack-level operating profit is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.
How This Measure Is Useful
When used in conjunction with GAAP financial measures, Shack-level operating profit and Shack-level operating profit margin are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks. Additionally, Shack-level operating profit and Shack-level operating profit margin are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. It is also used to evaluate employee compensation as it serves as a metric in certain performance-based employee bonus arrangements. The Company believes presentation of Shack-level operating profit and Shack-level operating profit margin provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Shacks, as these measures depict the operating results that are directly impacted by the Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of the Shacks. It may also assist investors to evaluate the Company's performance relative to peers of various sizes and maturities and provides greater transparency with respect to how management evaluates the business, as well as the financial and operational decision-making.
Limitations of the Usefulness of this Measure
Shack-level operating profit and Shack-level operating profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Shack-level operating profit and Shack-level operating profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Shack-level operating profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of the Company's Shacks. Therefore, this measure may not provide a complete understanding of the Company's operating results as a whole and Shack-level operating profit and Shack-level operating profit margin should be reviewed in conjunction with the Company's GAAP financial results. A reconciliation of Shack-level operating profit to Loss from Operations, the most directly comparable GAAP financial measure, is set forth below.
|
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
||||||||||||||
(dollar amounts in thousands) |
|
|
|
|
||||||||||||
Loss from operations |
$ |
(4,826 |
) |
$ |
(2,646 |
) |
$ |
(20,580 |
) |
$ |
(9,360 |
) |
||||
Less: |
|
|
|
|
||||||||||||
Licensing revenue |
|
8,313 |
|
|
6,923 |
|
|
22,611 |
|
|
17,527 |
|
||||
Add: |
|
|
|
|
||||||||||||
General and administrative expenses |
|
26,645 |
|
|
20,504 |
|
|
87,040 |
|
|
60,435 |
|
||||
Depreciation and amortization expense |
|
18,647 |
|
|
15,183 |
|
|
53,589 |
|
|
43,381 |
|
||||
Pre-opening costs |
|
3,041 |
|
|
2,933 |
|
|
8,576 |
|
|
8,767 |
|
||||
Impairment and loss on disposal of assets |
|
592 |
|
|
535 |
|
|
1,697 |
|
|
1,262 |
|
||||
Shack-level operating profit |
$ |
35,786 |
|
$ |
29,586 |
|
$ |
107,711 |
|
$ |
86,958 |
|
||||
|
|
|
|
|
||||||||||||
Total revenue |
$ |
227,814 |
|
$ |
193,895 |
|
$ |
661,957 |
|
$ |
536,637 |
|
||||
Less: Licensing revenue |
|
8,313 |
|
|
6,923 |
|
|
22,611 |
|
|
17,527 |
|
||||
Shack sales |
$ |
219,501 |
|
$ |
186,972 |
|
$ |
639,346 |
|
$ |
519,110 |
|
||||
|
|
|
|
|
||||||||||||
Shack-level operating profit margin(1,2) |
|
16.3 |
% |
|
15.8 |
% |
|
16.8 |
% |
|
16.8 |
% |
||||
| ___________________ | ||
(1) |
As a percentage of Shack sales. |
|
(2) |
For the thirty-nine weeks ended |
|
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
EBITDA and Adjusted EBITDA
EBITDA is defined as Net income (loss) before interest expense (net of interest income), Income tax expense (benefit) and Depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA (as defined above) excluding equity-based compensation expense, deferred lease costs, Impairment and loss on the disposal of assets, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that the Company believes are useful measures to facilitate comparisons to historical performance and competitors' operating results. Adjusted EBITDA is a key metric used internally by management to develop internal budgets and forecasts and also serves as a metric in its performance-based equity incentive programs and certain bonus arrangements. The Company believes presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of the Company's operating performance that facilitates analysis and comparisons of its ongoing business operations because they exclude items that may not be indicative of the Company's ongoing operating performance.
Limitations of the Usefulness of These Measures
EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. A reconciliation of EBITDA and adjusted EBITDA to Net income (loss) the most directly comparable GAAP measure, is as follows.
|
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
||||||||||||||
(dollar amounts in thousands) |
|
|
|
|
||||||||||||
Net income (loss) |
$ |
(2,311 |
) |
$ |
(2,402 |
) |
$ |
(14,896 |
) |
$ |
238 |
|
||||
Depreciation and amortization expense |
|
18,647 |
|
|
15,183 |
|
|
53,589 |
|
|
43,381 |
|
||||
Interest expense, net |
|
475 |
|
|
350 |
|
|
1,145 |
|
|
1,224 |
|
||||
Benefit from income taxes |
|
(1,508 |
) |
|
(576 |
) |
|
(5,098 |
) |
|
(10,665 |
) |
||||
EBITDA |
|
15,303 |
|
|
12,555 |
|
|
34,740 |
|
|
34,178 |
|
||||
|
|
|
|
|
||||||||||||
Equity-based compensation |
|
3,515 |
|
|
2,324 |
|
|
10,155 |
|
|
5,963 |
|
||||
Amortization of cloud-based software implementation costs |
|
397 |
|
|
308 |
|
|
1,080 |
|
|
935 |
|
||||
Deferred lease costs(1) |
|
(258 |
) |
|
108 |
|
|
(1,908 |
) |
|
237 |
|
||||
Impairment and loss on disposal of assets |
|
592 |
|
|
535 |
|
|
1,697 |
|
|
1,262 |
|
||||
Legal matters |
|
— |
|
|
— |
|
|
6,750 |
|
|
619 |
|
||||
Gift card breakage cumulative catch-up adjustment |
|
— |
|
|
— |
|
|
(1,281 |
) |
|
— |
|
||||
Debt offering related costs(2) |
|
— |
|
|
— |
|
|
— |
|
|
236 |
|
||||
Executive transition costs |
|
— |
|
|
— |
|
|
— |
|
|
179 |
|
||||
Adjusted EBITDA |
$ |
19,549 |
|
$ |
15,830 |
|
$ |
51,233 |
|
$ |
43,609 |
|
||||
|
|
|
|
|
||||||||||||
Adjusted EBITDA margin(3) |
|
8.6 |
% |
|
8.2 |
% |
|
7.7 |
% |
|
8.1 |
% |
||||
| ___________________ | ||
(1) |
Reflects the extent to which lease expense is greater than or less than contractual fixed base rent. |
|
(2) |
Costs incurred in connection with the Company’s Convertible Notes, issued in |
|
(3) |
Calculated as a percentage of Total revenue, which was |
|
Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma Earnings (Loss) Per Fully Exchanged and Diluted Share
Adjusted pro forma net income (loss) represents Net income (loss) attributable to
How These Measures Are Useful
When used in conjunction with GAAP financial measures, adjusted pro forma net income (loss) and adjusted pro forma earnings (loss) per fully exchanged and diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period over period and relative to its competitors. By assuming the full exchange of all outstanding LLC Interests, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income (loss) attributable to
Limitations of the Usefulness of These Measures
Adjusted pro forma net income (loss) and adjusted pro forma earnings (loss) per fully exchanged and diluted share may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income (loss) and adjusted pro forma earnings (loss) per fully exchanged and diluted share should not be considered alternatives to Net income (loss) and earnings (loss) per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the Net income (loss) attributable to
|
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
||||||||||||||
(in thousands, except per share amounts) |
|
|
|
|
||||||||||||
Numerator: |
|
|
|
|
||||||||||||
Net income (loss) attributable to |
$ |
(2,024 |
) |
$ |
(2,178 |
) |
$ |
(13,374 |
) |
$ |
1,075 |
|
||||
Adjustments: |
|
|
|
|
||||||||||||
Reallocation of Net loss attributable to non-controlling interests from the assumed exchange of LLC Interests(1) |
|
(287 |
) |
|
(224 |
) |
|
(1,522 |
) |
|
(837 |
) |
||||
Legal matters |
|
— |
|
|
— |
|
|
6,750 |
|
|
619 |
|
||||
Gift card breakage cumulative catch-up adjustment |
|
— |
|
|
— |
|
|
(1,281 |
) |
|
— |
|
||||
Debt offering related costs(2) |
|
— |
|
|
— |
|
|
— |
|
|
236 |
|
||||
Executive transition costs |
|
— |
|
|
— |
|
|
— |
|
|
179 |
|
||||
Revolving Credit Facility amendments related costs(3) |
|
— |
|
|
— |
|
|
— |
|
|
323 |
|
||||
Impact to income tax expense (benefit)(4) |
|
(11 |
) |
|
392 |
|
|
(922 |
) |
|
528 |
|
||||
Adjusted pro forma net income (loss) |
$ |
(2,322 |
) |
$ |
(2,010 |
) |
$ |
(10,349 |
) |
$ |
2,123 |
|
||||
|
|
|
|
|
||||||||||||
Denominator: |
|
|
|
|
||||||||||||
Weighted average shares of Class A common stock outstanding—diluted |
|
39,274 |
|
|
39,137 |
|
|
39,221 |
|
|
43,448 |
|
||||
Adjustments: |
|
|
|
|
||||||||||||
Assumed exchange of LLC Interests for shares of Class A common stock(1) |
|
2,871 |
|
|
2,922 |
|
|
2,899 |
|
|
— |
|
||||
Adjusted pro forma fully exchanged weighted average shares of Class A common stock outstanding—diluted |
|
42,145 |
|
|
42,059 |
|
|
42,120 |
|
|
43,448 |
|
||||
|
|
|
|
|
||||||||||||
Adjusted pro forma earnings (loss) per fully exchanged share—diluted |
$ |
(0.06 |
) |
$ |
(0.05 |
) |
$ |
(0.25 |
) |
$ |
0.05 |
|
||||
|
Thirteen Weeks Ended |
Thirty-Nine Weeks Ended |
|||||||||||||
|
|
|
|
|
|||||||||||
Earnings (loss) per share of Class A common stock—diluted |
$ |
(0.05 |
) |
$ |
(0.06 |
) |
$ |
(0.34 |
) |
$ |
0.01 |
||||
Assumed exchange of LLC Interests for shares of Class A common stock(1) |
|
— |
|
|
— |
|
|
(0.01 |
) |
|
— |
||||
Non-GAAP adjustments(5) |
|
(0.01 |
) |
|
0.01 |
|
|
0.10 |
|
|
0.04 |
||||
Adjusted pro forma earnings (loss) per fully exchanged share—diluted |
$ |
(0.06 |
) |
$ |
(0.05 |
) |
$ |
(0.25 |
) |
$ |
0.05 |
||||
| ___________________ | ||
(1) |
Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income (loss) attributable to non-controlling interests. |
|
(2) |
Costs incurred in connection with the Company’s Convertible Notes, issued in |
|
(3) |
Expense incurred in connection with the Company's amendments on the Revolving Credit Facility, including the write-off of previously capitalized costs on the Revolving Credit Facility. |
|
(4) |
Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of |
|
(5) |
Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted Pro Forma Net Income (Loss) above, for additional information. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221102006128/en/
Media:
(646) 747-8776
kclark@shakeshack.com
Investor Relations:
(844) SHACK-04 (844-742-2504)
investor@shakeshack.com
Source:
FAQ
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