UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 29, 2022
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (813 ) 282-1225
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
$ | The (Nasdaq Global Select Market) | ||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On July 29, 2022, the Company issued a press release reporting its financial results for the thirteen weeks ended June 26, 2022. A copy of the release is attached as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure
Attached as Exhibit 99.2 hereto is an illustration of the potential dilutive impact of the Company’s 5.00% Convertible Senior Notes due 2025 and the related convertible note hedge transaction, assuming various hypothetical quarterly average market prices of the Company’s common stock at the initial conversion rate.
The information in Items 2.02 and 7.01 of this Current Report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit Number | Description | ||||||||||
| 99.1 | |||||||||||
| 99.2 | |||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BLOOMIN’ BRANDS, INC. | |||||||||||
| (Registrant) | |||||||||||
| Date: | July 29, 2022 | By: | /s/ Christopher Meyer | ||||||||
| Christopher Meyer | |||||||||||
| Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||||||
 | NEWS | Exhibit 99.1 | ||||||||||||
| Mark Graff | ||||||||||||||
| SVP, Financial Planning and Investor Relations | ||||||||||||||
| (813) 830-5311 | ||||||||||||||
Bloomin’ Brands Announces 2022 Q2 Financial Results
Q2 Diluted EPS of $(0.72) and Adjusted Diluted EPS of $0.68
Reiterates Full Year Adjusted Profit and EPS Expectations
Raises Full Year Guidance for Total Revenues
Declares Quarterly Cash Dividend of $0.14 per share
TAMPA, Fla., July 29, 2022 - Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2022 (“Q2 2022”) compared to the second quarter 2021 (“Q2 2021”).
CEO Comments
“We delivered another solid quarter of results that highlights the strength of our portfolio,” said David Deno, CEO. “Importantly, we achieved this performance despite increased inflationary headwinds and a softening macro environment in June. The ability to leverage our leading off-premises business, capitalize on growing digital capabilities, and improve operational efficiencies has enabled us to deliver on our commitments. We remain focused on executing against our strategy to elevate the guest experience while driving sustainable sales and profits to thrive in this challenging environment.”
Diluted EPS and Adjusted Diluted EPS
The following table reconciles Diluted (loss) earnings per share to Adjusted diluted earnings per share for the periods indicated (unaudited):
| Q2 | |||||||||||||||||
| 2022 | 2021 | CHANGE | |||||||||||||||
| Diluted (loss) earnings per share | $ | (0.72) | $ | 0.75 | $ | (1.47) | |||||||||||
| Adjustments (1) | 1.40 | 0.06 | 1.34 | ||||||||||||||
| Adjusted diluted earnings per share (1) | $ | 0.68 | $ | 0.81 | $ | (0.13) | |||||||||||
___________________
(1)Adjustments for Q2 2022 primarily relate to the repurchase of $125 million of our outstanding convertible notes (the “2025 Notes”), as well as the settlements of the related convertible senior note hedges and warrants (the “2025 Notes Partial Repurchase”). See Non-GAAP Measures later in this release.
Second Quarter Financial Results
| (dollars in millions, unaudited) | Q2 2022 | Q2 2021 | CHANGE | ||||||||||||||
| Total revenues | $ | 1,125.2 | $ | 1,077.4 | 4.4 | % | |||||||||||
| Restaurant-level operating margin | 15.5 | % | 20.3 | % | (4.8) | % | |||||||||||
| GAAP Operating income margin | 7.8 | % | 11.6 | % | (3.8) | % | |||||||||||
| Adjusted operating income margin (1) | 7.8 | % | 11.0 | % | (3.2) | % | |||||||||||
(1)See Non-GAAP Measures later in this release.
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•The increase in Total revenues was primarily due to: (i) higher comparable restaurant sales primarily in Brazil, (ii) the net impact of restaurant openings and closures and (iii) the effect of foreign currency translation of the Brazilian Real relative to the U.S. dollar.
•Restaurant-level operating margin decreased primarily due to: (i) commodity inflation, (ii) higher operating expenses including utilities, (iii) increased labor costs primarily due to wage rate inflation and (iv) higher advertising expense. These decreases were partially offset by: (i) increases in average check per person, (ii) the net benefit of lapping the impact of COVID-19 in Brazil and (iii) the impact of certain cost saving initiatives.
•Operating income margin decreased due to a decrease in restaurant-level operating margin as described above and benefits from value-added tax court rulings in Brazil during 2021, partially offset by lower incentive compensation.
Second Quarter Comparable Restaurant Sales
The following table includes Company-owned comparable restaurant sales for the second quarter ended June 26, 2022 as well as performance relative to 2019 for improved comparability to pre-COVID-19 restaurant sales:
| THIRTEEN WEEKS ENDED | |||||||||||
| JUNE 26, 2022 | |||||||||||
| Comparable restaurant sales (stores open 18 months or more): | COMPARABLE TO 2021 | COMPARABLE TO 2019 | |||||||||
| U.S. | |||||||||||
| Outback Steakhouse | (1.1) | % | 10.1 | % | |||||||
| Carrabba’s Italian Grill | (1.0) | % | 15.6 | % | |||||||
| Bonefish Grill | (1.1) | % | 3.3 | % | |||||||
| Fleming’s Prime Steakhouse & Wine Bar | 6.0 | % | 31.8 | % | |||||||
| Combined U.S. | (0.4) | % | 11.7 | % | |||||||
| International | |||||||||||
| Outback Steakhouse - Brazil (1) | 95.7 | % | 27.6 | % | |||||||
_________________
(1)Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.
The following table includes Company-owned average restaurant unit volumes for the periods indicated:
| THIRTEEN WEEKS ENDED | |||||||||||
| Average restaurant unit volumes (weekly): | JUNE 26, 2022 | JUNE 30, 2019 (1) | |||||||||
| U.S. | |||||||||||
| Outback Steakhouse | $ | 77,941 | $ | 69,497 | |||||||
| Carrabba’s Italian Grill | $ | 66,016 | $ | 56,285 | |||||||
| Bonefish Grill | $ | 64,113 | $ | 60,018 | |||||||
| Fleming’s Prime Steakhouse & Wine Bar | $ | 112,900 | $ | 81,754 | |||||||
| International | |||||||||||
| Outback Steakhouse - Brazil (2) | $ | 61,210 | $ | 66,829 | |||||||
_________________
(1)Presented for comparability to pre-COVID-19 average restaurant unit volumes.
(2)Translated at average exchange rates of 4.89 and 3.91 for the thirteen weeks ended June 26, 2022 and June 30, 2019, respectively. Brazil average restaurant unit volumes for the thirteen weeks ended June 26, 2022 are up 14% on a constant currency basis versus the comparable period in 2019.
Dividend Declaration and Share Repurchases
On July 19, 2022, our Board of Directors declared a quarterly cash dividend of $0.14 per share to be paid on August 24, 2022 to all stockholders of record as of the close of business on August 10, 2022.
On February 8, 2022, our Board of Directors approved a $125 million share repurchase program. Through July 28, 2022, we repurchased 3.2 million shares for a total of $62 million and had $63 million remaining under this authorization. This authorization will expire on August 9, 2023.
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Fiscal 2022 Financial Outlook
The table below presents our updated expectations for selected 2022 financial operating results. We have increased our full year outlook for total revenues and expect the profit benefits from the increased revenues to be offset by higher than expected inflation. We are reaffirming all other aspects of our full-year financial guidance as previously communicated in our April 29, 2022 earnings release, including adjusted EBITDA and adjusted diluted earnings per share.
| Financial Results: | Prior Outlook | Current Outlook | ||||||||||||
| Total revenues | $4.35B to $4.40B | $4.40B to $4.45B | ||||||||||||
| GAAP diluted earnings per share (1) | $2.23 to $2.32 | $1.11 to $1.22 | ||||||||||||
| GAAP effective income tax rate (2) | 16.5% to 17.5% | 28% to 29% | ||||||||||||
| Other Selected Financial Data: | ||||||||||||||
| Commodity inflation | 11% to 13% | 13% to 14% | ||||||||||||
| Capital expenditures | $225M to $240M | $200M to $210M | ||||||||||||
| Weighted average adjusted diluted shares (3) | Approx. 95 million | Approx. 93 million | ||||||||||||
_________________
(1)For GAAP purposes assumes weighted average diluted shares of approximately 99 million. The total change in GAAP earnings per share is due to the impact of losses related to the 2025 Notes Partial Repurchase.
(2)Increase in the GAAP effective income tax rate primarily related to the 2025 Notes Partial Repurchase in Q2 2022.
(3)Reflects the impact of the partial repurchase of the 2025 Notes.
Q3 2022 Financial Outlook
The table below presents our expectations for selected fiscal Q3 2022 financial operating results:
| Financial Results: | Q3 2022 Outlook | |||||||
| Total revenues | $1.05B to $1.07B | |||||||
| GAAP diluted earnings per share (1) | $0.30 to $0.35 | |||||||
| Adjusted diluted earnings per share (2) | $0.31 to $0.36 | |||||||
_________________
(1)For GAAP purposes assumes weighted average diluted shares of approximately 96 million.
(2)Assumes weighted average adjusted diluted shares of approximately 93 million, which includes the benefit of the convertible note hedge entered into in May 2020.
Conference Call
The Company will host a conference call today, July 29, 2022 at 8:15 AM EDT. The conference call will be webcast live from the Company’s website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company’s website after the call.
Non-GAAP Measures
In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include the following: (i) Adjusted income from operations and the corresponding margin, (ii) Adjusted net income, (iii) Adjusted diluted earnings per share and (iv) Adjusted segment income from operations and the corresponding margin.
We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for
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how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans.
These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should refer to the reconciliations of non-GAAP measures in tables four, five, six and seven included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period.
About Bloomin’ Brands, Inc.
Bloomin’ Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has four founder-inspired brands: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company operates more than 1,500 full-service restaurants and off-premises only kitchens in 47 states, Guam and 15 countries, some of which are franchise locations. For more information, please visit www.bloominbrands.com.
Forward-Looking Statements
Certain statements contained herein, including statements under the headings “CEO Comments”, “Fiscal 2022 Financial Outlook” and “Q3 2022 Financial Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as “guidance,” “believes,” “estimates,” “anticipates,” “expects,” “on track,” “feels,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statements. These risks and uncertainties include, but are not limited to: consumer reaction to public health and food safety issues; the effects of the COVID-19 pandemic and uncertainties about its depth and duration, as well as the impacts to economic conditions and consumer behavior, including, among others: the inability of workers, including delivery drivers, to work due to illness, quarantine, or government mandates, temporary restaurant closures and capacity restrictions due to reduced workforces or government mandates, the unemployment rate, the extent, availability and effectiveness of any COVID-19 stimulus packages or loan programs, the ability of our franchisees to operate their restaurants during the pandemic and pay royalties, and trends in consumer behavior and spending during and after the end of the pandemic; increases in labor costs and fluctuations in the availability of employees; increases in unemployment rates and taxes; price and availability of commodities and other impacts of inflation; competition; local, regional, national and international economic conditions; our ability to preserve the value of and grow our brands; interruption or breach of our systems or loss of consumer or employee information; our dependence on a limited number of suppliers and distributors; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; government actions and policies; the effects of changes in tax laws; changes in patterns of consumer traffic, consumer tastes and dietary habits; challenges associated with our remodeling, relocation and expansion plans; consumer confidence and spending patterns; the seasonality of the Company’s business; weather, acts of God and other disasters; compliance with debt covenants and the Company’s ability to make debt payments and planned investments; the cost and availability of credit; interest rate changes; and any impairments in the carrying value of goodwill and other assets. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking
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statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Note: Numerical figures included in this release have been subject to rounding adjustments.
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| TABLE ONE | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | ||||||||||||||||||||||
| (in thousands, except per share data) | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Restaurant sales | $ | 1,108,918 | $ | 1,055,227 | $ | 2,232,493 | $ | 2,034,678 | |||||||||||||||
| Franchise and other revenues | 16,244 | 22,139 | 33,204 | 30,161 | |||||||||||||||||||
| Total revenues | 1,125,162 | 1,077,366 | 2,265,697 | 2,064,839 | |||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Food and beverage costs | 364,459 | 312,102 | 723,829 | 603,972 | |||||||||||||||||||
| Labor and other related | 308,759 | 294,999 | 621,270 | 569,637 | |||||||||||||||||||
| Other restaurant operating | 263,529 | 233,450 | 522,639 | 462,743 | |||||||||||||||||||
| Depreciation and amortization | 41,257 | 40,539 | 83,032 | 81,765 | |||||||||||||||||||
| General and administrative | 59,246 | 66,462 | 117,920 | 123,710 | |||||||||||||||||||
| Provision for impaired assets and restaurant closings | 193 | 5,177 | 2,032 | 7,377 | |||||||||||||||||||
| Total costs and expenses | 1,037,443 | 952,729 | 2,070,722 | 1,849,204 | |||||||||||||||||||
| Income from operations | 87,719 | 124,637 | 194,975 | 215,635 | |||||||||||||||||||
| Loss on extinguishment and modification of debt | (107,630) | (2,073) | (107,630) | (2,073) | |||||||||||||||||||
| Loss on fair value adjustment of derivatives, net | (17,685) | — | (17,685) | — | |||||||||||||||||||
| Other income, net | — | — | — | 21 | |||||||||||||||||||
| Interest expense, net | (12,548) | (14,990) | (26,181) | (29,618) | |||||||||||||||||||
| (Loss) income before provision for income taxes | (50,144) | 107,574 | 43,479 | 183,965 | |||||||||||||||||||
| Provision for income taxes | 11,536 | 22,688 | 27,465 | 29,281 | |||||||||||||||||||
| Net (loss) income | (61,680) | 84,886 | 16,014 | 154,684 | |||||||||||||||||||
| Less: net income attributable to noncontrolling interests | 1,955 | 2,341 | 4,138 | 3,277 | |||||||||||||||||||
Net (loss) income attributable to Bloomin’ Brands | (63,635) | 82,545 | 11,876 | 151,407 | |||||||||||||||||||
| Convertible senior notes if-converted method interest adjustment, net of tax | — | — | — | 691 | |||||||||||||||||||
| Diluted net (loss) income attributable to Bloomin’ Brands | $ | (63,635) | $ | 82,545 | $ | 11,876 | $ | 152,098 | |||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||||||||
| Basic | $ | (0.72) | $ | 0.93 | $ | 0.13 | $ | 1.71 | |||||||||||||||
| Diluted | $ | (0.72) | $ | 0.75 | $ | 0.12 | $ | 1.38 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 88,898 | 89,075 | 89,127 | 88,721 | |||||||||||||||||||
| Diluted | 88,898 | 109,805 | 102,045 | 110,223 | |||||||||||||||||||
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| TABLE TWO | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| SEGMENT RESULTS | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | |||||||||||||||||||||
| U.S. Segment | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Restaurant sales | $ | 985,927 | $ | 990,293 | $ | 2,009,562 | $ | 1,890,352 | |||||||||||||||
| Franchise and other revenues | 12,700 | 12,765 | 25,472 | 17,624 | |||||||||||||||||||
| Total revenues | $ | 998,627 | $ | 1,003,058 | $ | 2,035,034 | $ | 1,907,976 | |||||||||||||||
| Restaurant-level operating margin | 15.1 | % | 21.7 | % | 16.3 | % | 20.5 | % | |||||||||||||||
| Income from operations | $ | 104,620 | $ | 165,297 | $ | 236,846 | $ | 287,032 | |||||||||||||||
| Operating income margin | 10.5 | % | 16.5 | % | 11.6 | % | 15.0 | % | |||||||||||||||
| International Segment | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Restaurant sales | $ | 122,991 | $ | 64,934 | $ | 222,931 | $ | 144,326 | |||||||||||||||
| Franchise and other revenues (1) | 3,544 | 9,374 | 7,732 | 12,537 | |||||||||||||||||||
| Total revenues | $ | 126,535 | $ | 74,308 | $ | 230,663 | $ | 156,863 | |||||||||||||||
| Restaurant-level operating margin | 17.8 | % | 3.2 | % | 17.4 | % | 9.3 | % | |||||||||||||||
| Income from operations | $ | 14,126 | $ | 2,470 | $ | 23,010 | $ | 6,007 | |||||||||||||||
| Operating income margin | 11.2 | % | 3.3 | % | 10.0 | % | 3.8 | % | |||||||||||||||
| Reconciliation of Segment Income from Operations to Consolidated Income from Operations | |||||||||||||||||||||||
| Segment income from operations | |||||||||||||||||||||||
| U.S. | $ | 104,620 | $ | 165,297 | $ | 236,846 | $ | 287,032 | |||||||||||||||
| International | 14,126 | 2,470 | 23,010 | 6,007 | |||||||||||||||||||
| Total segment income from operations | 118,746 | 167,767 | 259,856 | 293,039 | |||||||||||||||||||
| Unallocated corporate operating expense | (31,027) | (43,130) | (64,881) | (77,404) | |||||||||||||||||||
| Total income from operations | $ | 87,719 | $ | 124,637 | $ | 194,975 | $ | 215,635 | |||||||||||||||
____________________
(1)During the thirteen and twenty-six weeks ended June 27, 2021, we recognized $6.3 million of other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base of Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes.
| TABLE THREE | |||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||
| SUPPLEMENTAL BALANCE SHEET INFORMATION | |||||||||||
| JUNE 26, 2022 | DECEMBER 26, 2021 | ||||||||||
| (dollars in thousands) | (UNAUDITED) | ||||||||||
| Cash and cash equivalents | $ | 95,346 | $ | 87,585 | |||||||
| Net working capital (deficit) (1) | $ | (616,924) | $ | (631,833) | |||||||
| Total assets | $ | 3,229,995 | $ | 3,294,271 | |||||||
| Total debt, net | $ | 801,733 | $ | 793,065 | |||||||
| Total stockholders’ equity | $ | 262,741 | $ | 222,850 | |||||||
_________________
(1)We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.
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| TABLE FOUR | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| Consolidated | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | |||||||||||||||||||||
| (dollars in thousands) | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Income from operations | $ | 87,719 | $ | 124,637 | $ | 194,975 | $ | 215,635 | |||||||||||||||
| Operating income margin | 7.8 | % | 11.6 | % | 8.6 | % | 10.4 | % | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Franchise and other revenues | 16,244 | 22,139 | 33,204 | 30,161 | |||||||||||||||||||
| Plus: | |||||||||||||||||||||||
| Depreciation and amortization | 41,257 | 40,539 | 83,032 | 81,765 | |||||||||||||||||||
| General and administrative | 59,246 | 66,462 | 117,920 | 123,710 | |||||||||||||||||||
| Provision for impaired assets and restaurant closings | 193 | 5,177 | 2,032 | 7,377 | |||||||||||||||||||
| Restaurant-level operating income | $ | 172,171 | $ | 214,676 | $ | 364,755 | $ | 398,326 | |||||||||||||||
| Restaurant-level operating margin | 15.5 | % | 20.3 | % | 16.3 | % | 19.6 | % | |||||||||||||||
| U.S. | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | |||||||||||||||||||||
| (dollars in thousands) | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Income from operations | $ | 104,620 | $ | 165,297 | $ | 236,846 | $ | 287,032 | |||||||||||||||
| Operating income margin | 10.5 | % | 16.5 | % | 11.6 | % | 15.0 | % | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Franchise and other revenues | 12,700 | 12,765 | 25,472 | 17,624 | |||||||||||||||||||
| Plus: | |||||||||||||||||||||||
| Depreciation and amortization | 33,545 | 33,579 | 68,303 | 67,224 | |||||||||||||||||||
| General and administrative | 23,648 | 22,953 | 47,093 | 44,045 | |||||||||||||||||||
| Provision for impaired assets and restaurant closings | 191 | 5,676 | 249 | 7,139 | |||||||||||||||||||
| Restaurant-level operating income | $ | 149,304 | $ | 214,740 | $ | 327,019 | $ | 387,816 | |||||||||||||||
| Restaurant-level operating margin | 15.1 | % | 21.7 | % | 16.3 | % | 20.5 | % | |||||||||||||||
| International | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | |||||||||||||||||||||
| (dollars in thousands) | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Income from operations | $ | 14,126 | $ | 2,470 | $ | 23,010 | $ | 6,007 | |||||||||||||||
| Operating income margin | 11.2 | % | 3.3 | % | 10.0 | % | 3.8 | % | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Franchise and other revenues | 3,544 | 9,374 | 7,732 | 12,537 | |||||||||||||||||||
| Plus: | |||||||||||||||||||||||
| Depreciation and amortization | 6,020 | 5,565 | 11,556 | 11,285 | |||||||||||||||||||
| General and administrative | 5,331 | 4,116 | 10,259 | 8,721 | |||||||||||||||||||
| Provision for impaired assets and restaurant closings | — | (708) | 1,775 | (1) | |||||||||||||||||||
| Restaurant-level operating income | $ | 21,933 | $ | 2,069 | $ | 38,868 | $ | 13,475 | |||||||||||||||
| Restaurant-level operating margin | 17.8 | % | 3.2 | % | 17.4 | % | 9.3 | % | |||||||||||||||
The following categories of our revenue and operating expenses are not included in restaurant-level operating margin because we do not consider them reflective of operating performance at the restaurant-level within a period:
(1)Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income.
(2)Depreciation and amortization which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.
(3)General and administrative expense which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.
(4)Asset impairment charges and restaurant closing costs which are not reflective of ongoing restaurant performance in a period.
8
| TABLE FIVE | |||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||
| RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| THIRTEEN WEEKS ENDED | (UNFAVORABLE) FAVORABLE CHANGE QUARTER TO DATE | ||||||||||||||||
| Consolidated: | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||
| Restaurant sales | 100.0 | % | 100.0 | % | |||||||||||||
| Food and beverage costs | 32.9 | % | 29.6 | % | (3.3) | % | |||||||||||
| Labor and other related | 27.8 | % | 28.0 | % | 0.2 | % | |||||||||||
| Other restaurant operating | 23.8 | % | 22.1 | % | (1.7) | % | |||||||||||
| Restaurant-level operating margin | 15.5 | % | 20.3 | % | (4.8) | % | |||||||||||
| Segments - Restaurant-level operating margin: | |||||||||||||||||
| U.S. | 15.1 | % | 21.7 | % | (6.6) | % | |||||||||||
| International | 17.8 | % | 3.2 | % | 14.6 | % | |||||||||||
| TWENTY-SIX WEEKS ENDED | (UNFAVORABLE) FAVORABLE CHANGE YEAR TO DATE | ||||||||||||||||
| Consolidated: | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||
| Restaurant sales | 100.0 | % | 100.0 | % | |||||||||||||
| Food and beverage costs | 32.4 | % | 29.7 | % | (2.7) | % | |||||||||||
| Labor and other related | 27.8 | % | 28.0 | % | 0.2 | % | |||||||||||
| Other restaurant operating | 23.4 | % | 22.7 | % | (0.7) | % | |||||||||||
| Restaurant-level operating margin | 16.3 | % | 19.6 | % | (3.3) | % | |||||||||||
| Segments - Restaurant-level operating margin: | |||||||||||||||||
| U.S. | 16.3 | % | 20.5 | % | (4.2) | % | |||||||||||
| International | 17.4 | % | 9.3 | % | 8.1 | % | |||||||||||
9
| TABLE SIX | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| INCOME FROM OPERATIONS, NET (LOSS) INCOME AND DILUTED (LOSS) EARNINGS PER SHARE NON-GAAP RECONCILIATIONS | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | ||||||||||||||||||||||
| (in thousands, except per share data) | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Income from operations | $ | 87,719 | $ | 124,637 | $ | 194,975 | $ | 215,635 | |||||||||||||||
| Operating income margin | 7.8 | % | 11.6 | % | 8.6 | % | 10.4 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Legal and other matters (1) | — | (6,337) | — | (6,337) | |||||||||||||||||||
| Total income from operations adjustments | — | (6,337) | — | (6,337) | |||||||||||||||||||
| Adjusted income from operations | $ | 87,719 | $ | 118,300 | $ | 194,975 | $ | 209,298 | |||||||||||||||
| Adjusted operating income margin | 7.8 | % | 11.0 | % | 8.6 | % | 10.2 | % | |||||||||||||||
| Diluted net (loss) income attributable to Bloomin’ Brands | $ | (63,635) | $ | 82,545 | $ | 11,876 | $ | 152,098 | |||||||||||||||
| Convertible senior notes if-converted method interest adjustment, net of tax (2) | — | — | — | 691 | |||||||||||||||||||
Net (loss) income attributable to Bloomin’ Brands | (63,635) | 82,545 | 11,876 | 151,407 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Income from operations adjustments | — | (6,337) | — | (6,337) | |||||||||||||||||||
| Loss on extinguishment and modification of debt (3) | 107,630 | 2,073 | 107,630 | 2,073 | |||||||||||||||||||
| Loss on fair value adjustment of derivatives, net (4) | 17,685 | — | 17,685 | — | |||||||||||||||||||
| Total adjustments, before income taxes | 125,315 | (4,264) | 125,315 | (4,264) | |||||||||||||||||||
| Adjustment to provision for income taxes (5) | 1,322 | 1,243 | 1,322 | 1,243 | |||||||||||||||||||
| Net adjustments | 126,637 | (3,021) | 126,637 | (3,021) | |||||||||||||||||||
| Adjusted net income | $ | 63,002 | $ | 79,524 | $ | 138,513 | $ | 148,386 | |||||||||||||||
| Diluted (loss) earnings per share (6) | $ | (0.72) | $ | 0.75 | $ | 0.12 | $ | 1.38 | |||||||||||||||
| Adjusted diluted earnings per share (7) | $ | 0.68 | $ | 0.81 | $ | 1.48 | $ | 1.53 | |||||||||||||||
| Diluted weighted average common shares outstanding (6) | 88,898 | 109,805 | 102,045 | 110,223 | |||||||||||||||||||
| Adjusted diluted weighted average common shares outstanding (7) | 92,863 | 98,574 | 93,792 | 97,011 | |||||||||||||||||||
_________________
(1)The thirteen and twenty-six weeks ended June 27, 2021 include the recognition of recoverable PIS and COFINS taxes, including accrued interest, within other revenues as a result of favorable court rulings in Brazil during the second quarter of 2021.
(2)Adjustment for interest expense related to the 2025 Notes weighted for the portion of the period prior to our election under the 2025 Notes indenture to settle the principal portion of the 2025 Notes in cash.
(3)The thirteen and twenty-six weeks ended June 26, 2022 include losses in connection with the $125.0 million 2025 Notes Partial Repurchase, the modification of our revolving credit facility and the extinguishment of our term loan A.
(4)Fair value adjustments to the conversion feature of the 2025 Notes repurchased, as well as the settlements of the related convertible senior note hedges and warrants in connection with the 2025 Notes Partial Repurchase.
(5)Income tax effect of the adjustments for the periods presented. For the thirteen and twenty-six weeks ended June 26, 2022, the primary difference between the GAAP and adjusted effective income tax rates relate to certain non-deductible losses and other tax costs associated with the 2025 Notes Partial Repurchase.
(6)Due to the GAAP net loss, the effect of dilutive securities was excluded from the calculation of GAAP diluted loss per share for the thirteen weeks ended June 26, 2022.
(7)Adjusted diluted weighted average common shares outstanding was calculated excluding the dilutive effect of 7,774 and 11,231 shares for the thirteen weeks ended June 26, 2022 and June 27, 2021, respectively, and 8,253 and 10,442 shares for the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively, to be issued upon conversion of the 2025 Notes to satisfy the amount in excess of the principal since our convertible note hedge offsets the dilutive impact of the shares underlying the 2025 Notes. For the twenty-six weeks ended June 27, 2021, adjusted diluted weighted average common shares outstanding was also calculated assuming our February 2021 election to settle the principal portion of the 2025 Notes in cash was in effect for the entire period. For adjusted diluted earnings per share, the calculation includes 3,965 dilutive shares for the thirteen weeks ended June 26, 2022, primarily related to outstanding warrants.
10
Following is a summary of the financial statement line item classification of the net (loss) income adjustments:
| THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | ||||||||||||||||||||||
| (dollars in thousands) | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Franchise and other revenues | $ | — | $ | (6,337) | $ | — | $ | (6,337) | |||||||||||||||
| Loss on extinguishment and modification of debt | 107,630 | 2,073 | 107,630 | 2,073 | |||||||||||||||||||
| Loss on fair value adjustment of derivatives, net | 17,685 | — | 17,685 | — | |||||||||||||||||||
| Provision for income taxes | 1,322 | 1,243 | 1,322 | 1,243 | |||||||||||||||||||
| Net adjustments | $ | 126,637 | $ | (3,021) | $ | 126,637 | $ | (3,021) | |||||||||||||||
| TABLE SEVEN | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATIONS | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | |||||||||||||||||||||
| International Segment | JUNE 26, 2022 | JUNE 27, 2021 | JUNE 26, 2022 | JUNE 27, 2021 | |||||||||||||||||||
| Income from operations | $ | 14,126 | $ | 2,470 | $ | 23,010 | $ | 6,007 | |||||||||||||||
| Operating income margin | 11.2 | % | 3.3 | % | 10.0 | % | 3.8 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Legal and other matters (1) | — | (6,337) | — | (6,337) | |||||||||||||||||||
| Adjusted income (loss) from operations | $ | 14,126 | $ | (3,867) | $ | 23,010 | $ | (330) | |||||||||||||||
| Adjusted operating income (loss) margin | 11.2 | % | (5.7) | % | 10.0 | % | (0.2) | % | |||||||||||||||
_________________
(1)Recognition of recoverable PIS and COFINS taxes, including accrued interest, within other revenues as a result of favorable court rulings in Brazil during the second quarter of 2021.
11
| TABLE EIGHT | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| COMPARATIVE RESTAURANT AND OFF-PREMISES ONLY KITCHEN INFORMATION | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| Number of restaurants: | MARCH 27, 2022 | OPENINGS | CLOSURES | JUNE 26, 2022 | |||||||||||||||||||
| U.S. | |||||||||||||||||||||||
| Outback Steakhouse | |||||||||||||||||||||||
| Company-owned | 562 | 2 | (1) | 563 | |||||||||||||||||||
| Franchised | 130 | — | — | 130 | |||||||||||||||||||
| Total | 692 | 2 | (1) | 693 | |||||||||||||||||||
| Carrabba’s Italian Grill | |||||||||||||||||||||||
| Company-owned | 199 | — | (1) | 198 | |||||||||||||||||||
| Franchised | 20 | — | (1) | 19 | |||||||||||||||||||
| Total | 219 | — | (2) | 217 | |||||||||||||||||||
| Bonefish Grill | |||||||||||||||||||||||
| Company-owned | 175 | — | (1) | 174 | |||||||||||||||||||
| Franchised | 7 | — | — | 7 | |||||||||||||||||||
| Total | 182 | — | (1) | 181 | |||||||||||||||||||
| Fleming’s Prime Steakhouse & Wine Bar | |||||||||||||||||||||||
| Company-owned | 64 | — | — | 64 | |||||||||||||||||||
| Aussie Grill | |||||||||||||||||||||||
| Company-owned | 7 | — | (2) | 5 | |||||||||||||||||||
| U.S. total | 1,164 | 2 | (6) | 1,160 | |||||||||||||||||||
| International | |||||||||||||||||||||||
| Company-owned | |||||||||||||||||||||||
| Outback Steakhouse - Brazil (1) | 123 | 6 | — | 129 | |||||||||||||||||||
| Other (1)(2) | 33 | — | — | 33 | |||||||||||||||||||
| Franchised | |||||||||||||||||||||||
| Outback Steakhouse - South Korea | 78 | 1 | (2) | 77 | |||||||||||||||||||
| Other (2) | 52 | — | (2) | 50 | |||||||||||||||||||
| International total | 286 | 7 | (4) | 289 | |||||||||||||||||||
| System-wide total | 1,450 | 9 | (10) | 1,449 | |||||||||||||||||||
| System-wide total - Company-owned | 1,163 | 8 | (5) | 1,166 | |||||||||||||||||||
| System-wide total - Franchised | 287 | 1 | (5) | 283 | |||||||||||||||||||
____________________
(1)The restaurant counts for Brazil, including Abbraccio restaurants within International Company-owned Other, are reported as of February 28, 2022 and May 31, 2022, respectively, to correspond with the balance sheet dates of this subsidiary.
(2)International Company-owned Other and International Franchised Other included two and three Aussie Grill locations, respectively, as of June 26, 2022.
| Number of kitchens (1): | MARCH 27, 2022 | OPENINGS | CLOSURES | JUNE 26, 2022 | |||||||||||||||||||
| U.S. | |||||||||||||||||||||||
| Company-owned | 2 | — | — | 2 | |||||||||||||||||||
| International | |||||||||||||||||||||||
| Company-owned | 1 | — | — | 1 | |||||||||||||||||||
| Franchised - South Korea | 46 | 3 | — | 49 | |||||||||||||||||||
| System-wide total | 49 | 3 | — | 52 | |||||||||||||||||||
____________________
(1)Excludes virtual concepts that operate out of existing restaurants and sports venue locations.
12
| TABLE NINE | |||||||||||||||||||||||
| BLOOMIN’ BRANDS, INC. | |||||||||||||||||||||||
| COMPARABLE RESTAURANT SALES INFORMATION | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | ||||||||||||||||||||||
| JUNE 26, 2022 | JUNE 26, 2022 | ||||||||||||||||||||||
| COMPARABLE TO | COMPARABLE TO | ||||||||||||||||||||||
| 2021 | 2019 (1) | 2021 | 2019 (1) | ||||||||||||||||||||
| Year over year percentage change: | |||||||||||||||||||||||
| Comparable restaurant sales (stores open 18 months or more): | |||||||||||||||||||||||
| U.S. (2) | |||||||||||||||||||||||
| Outback Steakhouse | (1.1) | % | 10.1 | % | 3.9 | % | 6.3 | % | |||||||||||||||
| Carrabba’s Italian Grill | (1.0) | % | 15.6 | % | 5.0 | % | 13.1 | % | |||||||||||||||
| Bonefish Grill | (1.1) | % | 3.3 | % | 9.2 | % | 2.5 | % | |||||||||||||||
| Fleming’s Prime Steakhouse & Wine Bar | 6.0 | % | 31.8 | % | 23.1 | % | 27.6 | % | |||||||||||||||
| Combined U.S. | (0.4) | % | 11.7 | % | 6.4 | % | 8.6 | % | |||||||||||||||
| International | |||||||||||||||||||||||
| Outback Steakhouse - Brazil (3) | 95.7 | % | 27.6 | % | 61.1 | % | 20.8 | % | |||||||||||||||
| Traffic: | |||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||
| Outback Steakhouse | (8.7) | % | (4.5) | % | (5.0) | % | (7.4) | % | |||||||||||||||
| Carrabba’s Italian Grill | (7.5) | % | 4.6 | % | (2.5) | % | 3.2 | % | |||||||||||||||
| Bonefish Grill | (8.6) | % | (4.9) | % | (1.0) | % | (5.6) | % | |||||||||||||||
| Fleming’s Prime Steakhouse & Wine Bar | (2.9) | % | 8.8 | % | 11.1 | % | 7.3 | % | |||||||||||||||
| Combined U.S. | (8.3) | % | (2.5) | % | (3.5) | % | (4.8) | % | |||||||||||||||
| International | |||||||||||||||||||||||
| Outback Steakhouse - Brazil | 57.8 | % | 28.8 | % | 42.0 | % | 23.9 | % | |||||||||||||||
| Average check per person (4): | |||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||
| Outback Steakhouse | 7.6 | % | 14.6 | % | 8.9 | % | 13.7 | % | |||||||||||||||
| Carrabba’s Italian Grill | 6.5 | % | 11.0 | % | 7.5 | % | 9.9 | % | |||||||||||||||
| Bonefish Grill | 7.5 | % | 8.2 | % | 10.2 | % | 8.1 | % | |||||||||||||||
| Fleming’s Prime Steakhouse & Wine Bar | 8.9 | % | 23.0 | % | 12.0 | % | 20.3 | % | |||||||||||||||
| Combined U.S. | 7.9 | % | 14.2 | % | 9.9 | % | 13.4 | % | |||||||||||||||
| International | |||||||||||||||||||||||
| Outback Steakhouse - Brazil | 37.3 | % | — | % | 19.2 | % | (2.8) | % | |||||||||||||||
____________________
(1)Comparable restaurant sales, traffic and average check per person increases (decreases) relative to 2019 for improved comparability to pre-COVID-19 restaurant sales.
(2)Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(3)Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.
(4)Average check per person includes the impact of menu pricing changes, product mix and discounts.
SOURCE: Bloomin’ Brands, Inc.
13
 | Exhibit 99.2 | |||||||||||||
Illustrative Effect of Potential Dilutive Impact of Convertible Senior Notes Due 2025
UNAUDITED
In May 2020, Bloomin’ Brands, Inc. (the “Company”) issued $230 million aggregate principal amount of 5.00% convertible senior notes due in 2025 (the “2025 Notes”). The initial conversion rate applicable to the 2025 Notes was 84.122 shares of our common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $11.89 per share of our common stock. In connection with the offering of the 2025 Notes, we entered into convertible note hedge transactions with certain of the initial purchasers of the 2025 Notes and/or their respective affiliates and other financial institutions. The Company also sold warrants for approximately 19.348 million shares of our common stock at an initial strike price of $16.64.
On May 25, 2022, the Company entered into exchange agreements with certain holders (the “Noteholders”) of the 2025 Notes. The Noteholders agreed to exchange $125.0 million in aggregate principal amount of the Company’s outstanding 2025 Notes for $196.9 million in cash, plus accrued interest, and approximately 2.3 million shares of the Company’s common stock (the “2025 Notes Partial Repurchase”). In connection with the 2025 Notes Partial Repurchase, the Company entered into partial unwind agreements with certain financial institutions relating to a portion of the convertible note hedge transactions and a portion of the warrants that were previously entered into by the Company in connection with the issuance of the 2025 Notes.
In connection with dividends paid during the twenty-six weeks ended June 26, 2022, the conversion rate for the remaining 2025 Notes decreased to approximately $11.74 per share, which represents 85.185 shares of common stock per $1,000 principal amount of the 2025 Notes, or a total of approximately 8.944 million shares for the remaining $105.0 million aggregate principal amount of the 2025 Notes. The strike price for the remaining warrants decreased to $16.43 in connection with dividends paid during the twenty-six weeks ended June 26, 2022.
1
The following table illustrates the potential dilutive shares of our common stock that would be included in the calculation of our future reported EPS assuming various hypothetical quarterly average market prices of our common stock at the current conversion rate. The potential dilutive shares are calculated using the “if-converted” method with the 2025 Notes to be settled in cash, as required, and any excess in shares.
| Hypothetical Quarterly Average Share Price (1) | Net Shares from Notes | Net Shares from Warrants | Total Dilutive Potential Shares for EPS Purposes (2) | Net Shares from Bond Hedge (3) | Total Expected Dilution at Maturity of Notes (4) | |||||||||||||||||||||||||||
| $11.74 | — | — | — | — | — | |||||||||||||||||||||||||||
| $16.00 | 2,381,900 | — | 2,381,900 | (2,381,900) | — | |||||||||||||||||||||||||||
| $16.43 | 2,555,543 | — | 2,555,543 | (2,555,543) | — | |||||||||||||||||||||||||||
| $18.00 | 3,111,067 | 777,734 | 3,888,801 | (3,111,067) | 777,734 | |||||||||||||||||||||||||||
| $20.00 | 3,694,400 | 1,594,400 | 5,288,800 | (3,694,400) | 1,594,400 | |||||||||||||||||||||||||||
| $22.00 | 4,171,673 | 2,262,582 | 6,434,255 | (4,171,673) | 2,262,582 | |||||||||||||||||||||||||||
| $24.00 | 4,569,400 | 2,819,400 | 7,388,800 | (4,569,400) | 2,819,400 | |||||||||||||||||||||||||||
| $26.00 | 4,905,939 | 3,290,554 | 8,196,493 | (4,905,939) | 3,290,554 | |||||||||||||||||||||||||||
| $28.00 | 5,194,400 | 3,694,400 | 8,888,800 | (5,194,400) | 3,694,400 | |||||||||||||||||||||||||||
| $30.00 | 5,444,400 | 4,044,400 | 9,488,800 | (5,444,400) | 4,044,400 | |||||||||||||||||||||||||||
| $32.00 | 5,663,150 | 4,350,650 | 10,013,800 | (5,663,150) | 4,350,650 | |||||||||||||||||||||||||||
| $34.00 | 5,856,165 | 4,620,871 | 10,477,036 | (5,856,165) | 4,620,871 | |||||||||||||||||||||||||||
| $36.00 | 6,027,734 | 4,861,067 | 10,888,801 | (6,027,734) | 4,861,067 | |||||||||||||||||||||||||||
| $38.00 | 6,181,243 | 5,075,979 | 11,257,222 | (6,181,243) | 5,075,979 | |||||||||||||||||||||||||||
| $40.00 | 6,319,400 | 5,269,400 | 11,588,800 | (6,319,400) | 5,269,400 | |||||||||||||||||||||||||||
_________________
(1)Although settlement continues beyond $40 per share, we have not presented further data.
(2)Represents incremental shares to be included in determination of diluted EPS, pursuant to GAAP.
(3)The bond hedge offsets dilution from the 2025 Notes upon conversion or settlement.
(4)These are the number of shares that represent actual dilution from the 2025 Notes at conversion or settlement.
The table above is for illustrative purposes and does not represent our forecast of future stock performance.
This document contains forward-looking statements regarding Bloomin’ Brands’ expectations, anticipations, intentions, beliefs or strategies regarding the future, including the total potential dilutive shares that would be included in the calculation of GAAP EPS. Forward-looking statements represent Bloomin’ Brands’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements and there can be no assurance that future developments affecting Bloomin’ Brands will be those that it has anticipated. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of our common stock and risks relating to our business, including the anticipated impact to consumer demand and supply chain due to the spread of the coronavirus (COVID-19), risks that we undergo a corporate event that causes a “make-whole fundamental change” with respect to the 2025 Notes, and other risks described in periodic reports that Bloomin’ Brands files from time to time with the Securities and Exchange Commission (the “SEC”). For additional information on these and other factors that could affect Bloomin’ Brands’ actual results, see the risk factors set forth in Bloomin’ Brands filings with the SEC, including the most recent Annual Report filed with the SEC on February 23, 2022. Bloomin’ Brands disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document, except as required by applicable law or regulation. Forward-looking statements included in this document are made as of the date hereof.
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