Carrols Restaurant Group, Inc. Reports Financial Results for the Second Quarter 2021
Carrols Restaurant Group (TAST) announced a special cash dividend of $0.41 per share, returning $25 million to shareholders. For Q2 2021, total restaurant sales rose 15.2% to $424.5 million, with Burger King comparable sales up 12.6%, while Popeyes sales dipped 5.3%. However, the company reported a net loss of $(9.6) million, influenced by an $8.5 million debt extinguishment charge. Adjusted EBITDA fell to $29.3 million, down from $38.0 million year-over-year. The company improved its adjusted leverage ratio to 3.82 times and ended the quarter with $56.2 million in cash.
- Total restaurant sales increased 15.2% to $424.5 million.
- Burger King comparable sales rose 12.6%.
- Adjusted leverage ratio improved to 3.82 times.
- Net loss of $(9.6) million, or $(0.19) per diluted share.
- Adjusted EBITDA decreased to $29.3 million from $38.0 million.
- Free cash flow dropped to $4.2 million from $48.6 million.
Board of Directors Declares Special Cash Dividend of
SYRACUSE, N.Y., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (Nasdaq: TAST) today reported its financial results for the second quarter ended July 4, 2021
Highlights for the Second Quarter of 2021 versus the Second Quarter of 2020 Include:
- Total restaurant sales increased
15.2% to$424.5 million compared to$368.4 million in the second quarter of 2020; - Comparable restaurant sales for the Company's Burger King® restaurants increased
12.6% ; - Comparable restaurant sales for the Company’s Popeyes® restaurants decreased
5.3% ; - Adjusted EBITDA(1) decreased to
$29.3 million from$38.0 million in the prior year quarter; - Adjusted Restaurant-Level EBITDA(1) decreased to
$47.9 million from$54.1 million in the prior year quarter; - Net Loss was
$(9.6) million , or$(0.19) per diluted share, and includes a non-cash extinguishment of debt charge of$8.5 million , compared to Net Income of$7.8 million , or$0.13 per diluted share, in the prior year quarter; - Adjusted Net Income(1) was
$16,000 , or$0.00 per diluted share, compared to Adjusted Net Income of$9.6 million , or$0.16 per diluted share, in the prior year quarter; - Free Cash Flow(2) of
$4.2 million compared to$48.6 million in the prior year quarter; and - Adjusted Leverage Ratio which compares Total Net Debt of the Company, including Unsecured Senior Notes, to Covenant EBITDA (as defined under the senior credit facility) improved to 3.82 times compared to 4.18 times a year ago.
(1)Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income (Loss) are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income (loss) or to income (loss) from operations in the tables at the end of this release.
(2)Free Cash flow is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure in the tables at the end of this release.
Management Commentary
Daniel T. Accordino, Chairman and Chief Executive Officer of Carrols, commented, “Our revenue growth of
Accordino continued, “Inflationary challenges weighed on our Adjusted Restaurant-Level EBITDA margins during the second quarter as we faced unprecedented cost pressures across nearly all inputs in May and June as the economy shifted into high gear in a very short time period. In particular, labor cost margins reverted to just below second quarter 2019 levels as operating hours normalized and team member average hourly wages increased nearly
Accordino concluded, “We remain confident in our business model and its profitability prospects despite the evolving and unpredictable course of the pandemic. We are committed to allocating capital in a disciplined manner, while maintaining substantial liquidity and keeping leverage in check. We therefore view our announcement of a
Second Quarter 2021 Financial Results
Total restaurant revenue increased
Adjusted Restaurant-Level EBITDA(1) decreased to
General and administrative expenses increased to
Adjusted EBITDA(1) decreased to
Income from operations decreased to
Interest expense increased to
Net Loss was
Balance Sheet Update
The Company ended the second quarter of 2021 with cash and cash equivalents of
Acquisition of 19 BURGER KING® Restaurants
In June 2021, the Company completed two Burger King restaurant acquisitions of 14 restaurants located in Indiana and five restaurants located in Michigan, for a total purchase price of
The Board of Directors declared a
Extension of Stock Repurchase Program
During the second quarter of 2021, the Company did not repurchase any shares of its common stock due to a limited trading window as a result of the private debt offering.
The Board of Directors has approved an extension of the Company’s 2019 stock repurchase program, which was set to expire on August 2, 2021 and has approximately
Conference Call Today
Daniel T. Accordino, the Company’s Chairman and Chief Executive Officer, and Anthony E. Hull, the Company’s Chief Financial Officer, will host a conference call to discuss second quarter 2021 financial results and provide a business update today at 8:30 AM ET.
The conference call can be accessed live over the telephone by dialing 201-493-6725. A replay will be available one hour after the call and can be accessed by dialing 412-317-6671; the passcode is 13721214. The replay will be available until Thursday, August 19, 2021. Investors and interested parties may listen to a webcast of this conference call by visiting the Investor Relations page of the Company’s website located at www.carrols.com. The press release and related presentation slides will be accessible via the same website page prior to the scheduled call.
About the Company
Carrols is one of the largest restaurant franchisees in North America. It is the largest BURGER KING® franchisee in the United States, currently operating 1,027 BURGER KING® restaurants in 23 states as well as 65 POPEYES® restaurants in seven states. Carrols has operated BURGER KING® restaurants since 1976 and POPEYES® restaurants since 2019. For more information, please visit the Company's website at www.carrols.com.
Forward-Looking Statements
Except for the historical information contained in this news release, the matters addressed are forward-looking statements. Forward-looking statements, written, oral or otherwise made, represent Carrols' expectation or belief concerning future events. Without limiting the foregoing, these statements are often identified by the words "may", "might", "believes", "thinks", "anticipates", "plans", "expects", "intends" or similar expressions. In addition, expressions of our strategies, intentions, plans or guidance are also forward-looking statements. Such statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. You are cautioned not to place undue reliance on these forward-looking statements as there are important factors that could cause actual results to differ materially from those in forward-looking statements, many of which are beyond our control. Investors are referred to the full discussion of risks and uncertainties, including without limitation the impact of COVID-19 on Carrols’ business, as included in Carrols' filings with the Securities and Exchange Commission.
Carrols Restaurant Group, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
| (unaudited) | ||||||||||||||||
| Three Months Ended (a) | Six Months Ended (a) | |||||||||||||||
| July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
| Restaurant sales | 424,541 | 368,418 | 814,534 | 719,936 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Food, beverage and packaging costs | 126,424 | 104,703 | 240,214 | 207,630 | ||||||||||||
| Restaurant wages and related expenses | 137,592 | 111,888 | 267,238 | 236,463 | ||||||||||||
| Restaurant rent expense | 30,591 | 28,984 | 60,905 | 58,438 | ||||||||||||
| Other restaurant operating expenses | 65,128 | 54,310 | 126,547 | 112,288 | ||||||||||||
| Advertising expense | 16,939 | 14,416 | 32,308 | 28,292 | ||||||||||||
| General and administrative expenses (b) (c) | 20,698 | 18,581 | 42,067 | 39,368 | ||||||||||||
| Depreciation and amortization | 20,421 | 20,296 | 41,030 | 41,327 | ||||||||||||
| Impairment and other lease charges | 144 | 2,941 | 497 | 5,822 | ||||||||||||
| Other expense (income), net (d) | 715 | (2,003 | ) | 942 | (1,947 | ) | ||||||||||
| Total costs and expenses | 418,652 | 354,116 | 811,748 | 727,681 | ||||||||||||
| Income (loss) from operations | 5,889 | 14,302 | 2,786 | (7,745 | ) | |||||||||||
| Interest expense | 6,942 | 6,370 | 13,668 | 13,510 | ||||||||||||
| Loss on extinguishment of debt | 8,538 | — | 8,538 | — | ||||||||||||
| Income (loss) before income taxes | (9,591 | ) | 7,932 | (19,420 | ) | (21,255 | ) | |||||||||
| Provision (benefit) from income taxes | (32 | ) | 90 | (2,693 | ) | (6,888 | ) | |||||||||
| Net income (loss) | $ | (9,559 | ) | $ | 7,842 | $ | (16,727 | ) | $ | (14,367 | ) | |||||
| Basic and diluted net income (loss) per share (e)(f) | $ | (0.19 | ) | $ | 0.13 | $ | (0.34 | ) | $ | (0.28 | ) | |||||
| Basic weighted average common shares outstanding | 49,917 | 50,917 | 49,871 | 50,869 | ||||||||||||
| Diluted weighted average common shares outstanding | 49,917 | 60,332 | 49,871 | 50,869 | ||||||||||||
| (a) | The Company uses a 52 or 53 week fiscal year that ends on the Sunday closest to December 31. The three and six months ended July 4, 2021 and June 28, 2020 each included thirteen and twenty-six weeks, respectively. |
| (b) | General and administrative expenses include acquisition costs of |
| (c) | General and administrative expenses include stock-based compensation expense of |
| (d) | Other expense (income), net, for the three and six months ended July 4, 2021 included a loss on disposal of assets of |
| (e) | Basic net income (loss) per share was computed without attributing any loss to preferred stock and non-vested restricted shares as losses are not allocated to participating securities under the two-class method. |
| (f) | Diluted net income (loss) per share was computed including shares issuable for convertible preferred stock and non-vested restricted shares unless their effect would have been anti-dilutive for the periods presented. |
Carrols Restaurant Group, Inc.
Supplemental Information
The following table sets forth certain unaudited supplemental financial and other data for the periods indicated (in thousands, except number of restaurants, percentages and average weekly sales per restaurant):
| (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| Burger King restaurant sales | $ | 402,659 | $ | 345,649 | $ | 771,147 | $ | 675,286 | ||||||||
| Popeyes restaurant sales | 21,882 | 22,769 | 43,387 | 44,650 | ||||||||||||
| Total revenue | $ | 424,541 | $ | 368,418 | $ | 814,534 | $ | 719,936 | ||||||||
| Change in Comparable Burger King Restaurant Sales (a) | 12.6 | % | (6.4 | )% | 13.6 | % | (6.0 | )% | ||||||||
| Change in Comparable Popeyes Restaurant Sales (a) | (5.3 | )% | 17.1 | % | (2.5 | )% | 17.1 | % | ||||||||
| Average Weekly Sales per Burger King Restaurant (b) | $ | 30,701 | $ | 26,777 | $ | 29,398 | $ | 25,675 | ||||||||
| Average Weekly Sales per Popeyes Restaurant (b) | $ | 25,896 | $ | 27,509 | $ | 25,673 | $ | 26,737 | ||||||||
| Adjusted Restaurant-Level EBITDA (c) | $ | 47,867 | $ | 54,127 | $ | 87,351 | $ | 76,924 | ||||||||
| Adjusted Restaurant-Level EBITDA margin (c) | 11.3 | % | 14.7 | % | 10.7 | % | 10.7 | % | ||||||||
| Adjusted EBITDA (c) | $ | 29,307 | $ | 38,017 | $ | 49,173 | $ | 41,989 | ||||||||
| Adjusted EBITDA margin (c) | 6.9 | % | 10.3 | % | 6.0 | % | 5.8 | % | ||||||||
| Adjusted Net Income (Loss) (c) | $ | 16 | $ | 9,574 | $ | (6,484 | ) | $ | (9,743 | ) | ||||||
| Adjusted Diluted Net Income (Loss) per share (c) | $ | — | $ | 0.16 | $ | (0.13 | ) | $ | (0.19 | ) | ||||||
| Number of Burger King restaurants: | ||||||||||||||||
| Restaurants at beginning of period | 1,010 | 1,028 | 1,009 | 1,036 | ||||||||||||
| New restaurants (including offsets) | — | 3 | 2 | 6 | ||||||||||||
| Restaurants acquired | 19 | — | 19 | — | ||||||||||||
| Restaurants closed (including offsets) | (2 | ) | (4 | ) | (3 | ) | (15 | ) | ||||||||
| Restaurants at end of period | 1,027 | 1,027 | 1,027 | 1,027 | ||||||||||||
| Average Number of operating Burger King restaurants | 1,008.9 | 993.0 | 1,009.0 | 1,011.6 | ||||||||||||
| Number of Popeyes restaurants: | ||||||||||||||||
| Restaurants at beginning and end of period | 65 | 65 | 65 | 65 | ||||||||||||
| Average Number of operating Popeyes restaurants | 65.0 | 63.7 | 65.0 | 64.2 | ||||||||||||
| (a) | Restaurants are generally included in comparable restaurant sales 12 months after their acquisition. Sales from newly developed restaurants are included in comparable restaurant sales after they have been open for 15 months. The calculation of changes in comparable restaurant sales is based on a 52-week look back to the comparable thirteen or twenty-six week period. |
| (b) | Average weekly sales per restaurant are derived by dividing restaurant sales for the thirteen or twenty-six week period by the average number of restaurants operating during such period. |
| (c) | EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Restaurant-Level EBITDA, Adjusted Restaurant-Level EBITDA margin, Adjusted Net Income (Loss) and Adjusted Diluted Net Income (Loss) per share are non-GAAP financial measures and may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation. Refer to the Company's reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted Net Income (Loss), and to the Company's reconciliation of income (loss) from operations to Adjusted Restaurant-Level EBITDA for further detail. Both Adjusted EBITDA margin and Adjusted Restaurant-Level EBITDA margin are calculated as a percentage of restaurant sales. Adjusted diluted net income (loss) per share is calculated based on Adjusted Net Income (Loss) and reflects the dilutive impact of shares, where applicable. |
Carrols Restaurant Group, Inc.
Reconciliation of Non-GAAP Measures
(In thousands)
| (unaudited) | ||||||||||||||||
| Three Months Ended (a) | Six Months Ended (a) | |||||||||||||||
| July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA: (b) | ||||||||||||||||
| Net income (loss) | $ | (9,559 | ) | $ | 7,842 | $ | (16,727 | ) | $ | (14,367 | ) | |||||
| Provision (benefit) for income taxes | (32 | ) | 90 | (2,693 | ) | (6,888 | ) | |||||||||
| Interest expense | 6,942 | 6,370 | 13,668 | 13,510 | ||||||||||||
| Depreciation and amortization | 20,421 | 20,296 | 41,030 | 41,327 | ||||||||||||
| EBITDA | 17,772 | 34,598 | 35,278 | 33,582 | ||||||||||||
| Impairment and other lease charges | 144 | 2,941 | 497 | 5,822 | ||||||||||||
| Acquisition costs (c) | 292 | 274 | 292 | 355 | ||||||||||||
| Stock-based compensation expense | 1,614 | 1,109 | 3,083 | 2,241 | ||||||||||||
| Abandoned development costs (d) | — | 869 | — | 1,557 | ||||||||||||
| Pre-opening costs (e) | — | 10 | 29 | 99 | ||||||||||||
| Litigation and other professional expenses (f) | 232 | 219 | 514 | 280 | ||||||||||||
| Loss on extinguishment of debt | 8,538 | — | 8,538 | — | ||||||||||||
| Other expense (income), net (g)(h) | 715 | (2,003 | ) | 942 | (1,947 | ) | ||||||||||
| Adjusted EBITDA | $ | 29,307 | $ | 38,017 | $ | 49,173 | $ | 41,989 | ||||||||
| Reconciliation of Adjusted Restaurant-Level EBITDA: (b) | ||||||||||||||||
| Income (loss) from operations | $ | 5,889 | $ | 14,302 | $ | 2,786 | $ | (7,745 | ) | |||||||
| Add: | ||||||||||||||||
| General and administrative expenses | 20,698 | 18,581 | 42,067 | 39,368 | ||||||||||||
| Pre-opening costs (e) | — | 10 | 29 | 99 | ||||||||||||
| Depreciation and amortization | 20,421 | 20,296 | 41,030 | 41,327 | ||||||||||||
| Impairment and other lease charges | 144 | 2,941 | 497 | 5,822 | ||||||||||||
| Other expense (income), net (g)(h) | 715 | (2,003 | ) | 942 | (1,947 | ) | ||||||||||
| Adjusted Restaurant-Level EBITDA | $ | 47,867 | $ | 54,127 | $ | 87,351 | $ | 76,924 | ||||||||
| Reconciliation of Adjusted Net Income (Loss): (b) | ||||||||||||||||
| Net income (loss) | $ | (9,559 | ) | $ | 7,842 | $ | (16,727 | ) | $ | (14,367 | ) | |||||
| Add: | ||||||||||||||||
| Impairment and other lease charges | 144 | 2,941 | 497 | 5,822 | ||||||||||||
| Acquisition costs (c) | 292 | 274 | 292 | 355 | ||||||||||||
| Abandoned development costs (d) | — | 869 | — | 1,557 | ||||||||||||
| Pre-opening costs (e) | — | 10 | 29 | 99 | ||||||||||||
| Litigation and other professional expenses (f) | 232 | 219 | 514 | 280 | ||||||||||||
| Other expense (income), net (g)(h) | 715 | (2,003 | ) | 942 | (1,947 | ) | ||||||||||
| Income tax effect on above adjustments (i) | (346 | ) | (578 | ) | (569 | ) | (1,542 | ) | ||||||||
| Loss on extinguishment of debt | 8,538 | — | 8,538 | — | ||||||||||||
| Adjusted Net Income (Loss) | $ | 16 | $ | 9,574 | $ | (6,484 | ) | $ | (9,743 | ) | ||||||
| Adjusted diluted net income (loss) per share (j) | $ | — | $ | 0.16 | $ | (0.13 | ) | $ | (0.19 | ) | ||||||
| Adjusted diluted weighted average common shares outstanding | 59,431 | 60,332 | 49,871 | 50,869 | ||||||||||||
| (a) | The Company uses a 52 or 53 week fiscal year that ends the Sunday closest to December 31. The three and six months ended July 4, 2021 and June 28, 2020 both included thirteen and twenty-six weeks, respectively. |
| (b) | Within this press release, we make reference to EBITDA, Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income (Loss) which are non-GAAP financial measures. EBITDA represents net income (loss) before income taxes, interest expense and depreciation and amortization. Adjusted EBITDA represents EBITDA as adjusted to exclude impairment and other lease charges, acquisition costs, stock-based compensation expense, abandoned development costs, restaurant pre-opening costs, non-recurring litigation and other professional expenses, loss on extinguishment of debt and other income and expense. Adjusted Restaurant-Level EBITDA represents income (loss) from operations as adjusted to exclude general and administrative expenses, depreciation and amortization, impairment and other lease charges, pre-opening costs, and other income and expense. Adjusted Net Income (Loss) represents net income (loss) as adjusted, net of tax, to exclude impairment and other lease charges, acquisition costs, abandoned development costs, pre-opening costs, non-recurring litigation and other professional expenses, other income and expense and loss on extinguishment of debt. |
| Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income (Loss) are presented because the Company believes that they provide a more meaningful comparison than EBITDA and net income (loss) of its core business operating results, as well as with those of other similar companies. Additionally, Adjusted Restaurant-Level EBITDA is presented because it excludes restaurant pre-opening costs, other income and expense, and the impact of general and administrative expenses such as salaries and expenses associated with corporate and administrative functions that support the development and operations of our restaurants, legal, auditing and other professional fees. Although these costs are not directly related to restaurant-level operations, these expenses are necessary for the profitability of our restaurants. Management believes that Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income (Loss), when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations in the table above, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Additionally, management believes that Adjusted EBITDA and Adjusted Restaurant-Level EBITDA permit investors to gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced. | |
| However, EBITDA, Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income (Loss) are not measures of financial performance or liquidity under U.S. GAAP and, accordingly, should not be considered as alternatives to net income (loss) from operations or cash flow from operating activities as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies. The tables above provide reconciliations between net income (loss) and EBITDA, Adjusted EBITDA and Adjusted Net Income (Loss) and between income (loss) from operations and Adjusted Restaurant-Level EBITDA. | |
| (c) | Acquisition costs for the three and six months ended July 4, 2021 mostly include integration, travel, legal and professional fees incurred in connection with restaurant acquisitions during the second quarter in 2021, which were included in general and administrative expenses. Acquisition costs for the three and six months ended June 28, 2020 mostly include legal and professional fees incurred in connection with the acquisition of 165 Burger King and 55 Popeyes restaurants from Cambridge Franchise Holdings, LLC in 2019 which were included in general and administrative expense. |
| (d) | Abandoned development costs for the three and six months ended June 28, 2020 represents the write-off of capitalized costs due to the abandoned development in 2020 of previously planned new restaurant locations. |
| (e) | Pre-opening costs for the three and six months ended July 4, 2021 and June 28, 2020 include training, labor and occupancy costs incurred during the construction of new restaurants. |
| (f) | Litigation and other professional expenses for the three and six months ended July 4, 2021 and June 28, 2020 include costs pertaining to an ongoing lawsuit with one of the Company's former vendors, as well as other non-recurring professional service expenses. |
| (g) | Other expense (income), net, for the three and six months ended July 4, 2021, included a loss on disposal of assets of |
| (h) | Other expense (income), net, for the three months ended June 28, 2020, included gains related to insurance recoveries from property damage at four of the Company's restaurants of |
| (i) | The income tax effect related to the adjustments to Adjusted Net Income (Loss) other than loss on extinguishment of debt was calculated using an incremental income tax rate of |
| (j) | Adjusted diluted net income (loss) per share is calculated based on Adjusted Net Income (Loss) and the dilutive weighted average common shares outstanding for the respective periods, where applicable. |
| (unaudited) | ||||||||||||||||
| Three Months Ended (a) | Six Months Ended (a) | |||||||||||||||
| July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
| Reconciliation of Free Cash Flow: (b) | ||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 19,579 | $ | 51,682 | $ | 26,615 | $ | 47,892 | ||||||||
| Net cash used for investing activities | (46,167 | ) | (3,038 | ) | (56,794 | ) | (25,006 | ) | ||||||||
| Add: cash paid for acquisitions | 30,819 | — | 30,819 | — | ||||||||||||
| Total Free Cash Flow | $ | 4,231 | $ | 48,644 | $ | 640 | $ | 22,886 | ||||||||
| At 7/4/2021 | At 1/3/2021 | At 6/28/2020 | ||||||||||
| Long-term debt and finance lease liabilities (c) | $ | 521,451 | $ | 494,158 | $ | 497,140 | ||||||
| Cash and cash equivalents | 56,187 | 64,964 | 45,978 | |||||||||
| Net Debt (d) | 465,264 | 429,194 | 451,162 | |||||||||
| Senior Secured Net Debt (e) | 165,264 | 429,194 | 451,162 | |||||||||
| Adjusted Leverage Ratio (f) | 3.82x | 3.82x | 4.18x | |||||||||
| Senior Secured Net Leverage Ratio (g) | 1.36x | 3.82x | 4.18x | |||||||||
| (a) | The Company uses a 52 or 53 week fiscal year that ends the Sunday closest to December 31. The three and six months ended July 4, 2021 and June 28, 2020 both included thirteen and twenty-six weeks, respectively. |
| (b) | Free Cash Flow is a non-GAAP financial measure and may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation. Free Cash Flow is defined as cash provided by operating activities less cash used for investing activities, adjusted to add back cash paid for acquisitions. Management believes that Free Cash Flow, when viewed with the Company's results of operations in accordance with U.S. GAAP and the accompanying reconciliations in the table above, provides useful information about the Company's cash flow for liquidity purposes and to service the Company's debt. However, Free Cash Flow is not a measure of liquidity under U.S GAAP, and, accordingly should not be considered as an alternative to the Company's consolidated statements of cash flows and net cash provided by operating activities, net cash used for investing activities and net cash provided by financing activities as indicators of liquidity or cash flow. Free Cash Flow for the three months ended July 4, 2021 and June 28, 2020 is derived from the Company's consolidated statements of cash flows for the respective six month periods to be presented in the Company’s Interim Condensed Consolidated Financial Statements in its Form 10-Q for the period ended July 4, 2021 and the Company's consolidated statements of cash flows for the previously reported three month periods ended April 4, 2021 and March 29, 2020 contained in the Company’s Form 10-Q for the period ended April 4, 2021. |
| (c) | Long-term debt and finance lease liabilities (including current portion and excluding deferred financing costs and original issue discount) at July 4, 2021 included |
| (d) | Net Debt represents total long-term debt and finance lease liabilities less cash and cash equivalents. |
| (e) | Senior Secured Net Debt represents total net debt less the |
| (f) | Adjusted Leverage Ratio represents the Company's Total Net Leverage Ratio as calculated in accordance with its senior credit facility for each period presented. |
| (g) | Senior Secured Net Leverage Ratio represents the Company's Net Leverage Ratio as calculated in accordance with its senior credit facility for each period presented. |
Investor Relations:
Raphael Gross
203-682-8253
investorrelations@carrols.com
FAQ
What is the special cash dividend amount declared by Carrols Restaurant Group (TAST)?
How much did Carrols Restaurant Group (TAST) report in total restaurant sales for Q2 2021?
What was the net loss reported by Carrols Restaurant Group (TAST) in Q2 2021?
When is the special cash dividend payment date for Carrols Restaurant Group (TAST)?
What was the change in the adjusted EBITDA for Carrols Restaurant Group (TAST) from Q2 2020 to Q2 2021?
