Fiesta Restaurant Group, Inc. - FORM 8-K - EX-99.1 - FINANCIAL RESULTS AND RELATED SUPPLEMENTAL INFORMATION - May 8, 2012

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8-K - FORM 8-K - Fiesta Restaurant Group, Inc.d349118d8k.htm
EX-99.2 - TEXT OF CARROLS RESTAURANT GROUP, INC. PRESS RELEASE - Fiesta Restaurant Group, Inc.d349118dex992.htm
EX-10.2 - FIESTA RESTAURANT GROUP, INC. 2012 STOCK INCENTIVE PLAN - Fiesta Restaurant Group, Inc.d349118dex102.htm
EX-10.1 - REGISTRATION RIGHTS AGREEMENT - Fiesta Restaurant Group, Inc.d349118dex101.htm

Exhibit 99.1

Fiesta Restaurant Group, Inc.

Consolidated Statements of Operations

(in thousands except per share amounts)

 

     (unaudited)
Three Months Ended
March 31, (a)		  
     2012     2011  

Revenues:

     

Restaurant sales

    $ 125,566      $ 115,251   

Franchise royalty revenues and fees

      576        365   
  

 

 

    

 

 

  

Total revenues

      126,142        115,616   

Costs and expenses:

     

Cost of sales

      40,784        36,344   

Restaurant wages and related expenses (b)

      33,825        31,633   

Restaurant rent expense

      3,967        4,060   

Other restaurant operating expenses

      15,829        14,743   

Advertising expense

      4,295        4,119   

General and administrative expenses (b) (c)

      11,080        8,921   

Depreciation and amortization

      4,840        4,797   

Impairment and other lease charges

      6,900        264   
  

 

 

    

 

 

  

Total costs and expenses

      121,520        104,881   
  

 

 

    

 

 

  

Income from operations

      4,622        10,735   

Interest expense

      7,969        4,845   
  

 

 

    

 

 

  

Income (loss) before income taxes

      (3,347 )      5,890   

Provision (benefit) for income taxes

      (1,482 )      2,276   
  

 

 

    

 

 

  

Net income (loss)

    $ (1,865 )    $ 3,614   
  

 

 

    

 

 

  

Basic and diluted net income (loss) per share

    $ (0.08 )    $ 0.16   
  

 

 

    

 

 

  

Basic and diluted weighted average common shares outstanding

      23,162        23,162   

 

(a) The Company uses a 52 or 53 week fiscal year that ends on the Sunday closest to December 31. For convenience, all references to the three months ended April 1, 2012 and April 3, 2011 are referred to as the three months ended March 31, 2012 and March 31, 2011, respectively, both of which included 13 weeks.
(b) Restaurant wages and related expenses include stock-based compensation expense of $4 and $5 for the three months ended March 31, 2012 and 2011, respectively. General and administrative expenses include stock-based compensation expense of $1,046 and $411 for the three months ended March 31, 2012 and 2011, respectively.
(c) General and administrative expenses include expenses related directly to Fiesta Restaurant Group and corporate expenses allocated from Carrols Corporation (our parent company until May 7, 2012). Such allocated expenses are for administrative support including executive management, information systems and certain accounting, legal and other administrative functions. General and administrative expenses for the three months ended March 31, 2012 included $630 of allocated expenses related to our spin-off from Carrols Restaurant Group, Inc. Also included were $1,071 of expenses related to the conversion of employee stock options to unrestricted and restricted common stock in connection with the spin-off and for the accelerated vesting of restricted common stock for the former Chairman of the Board.

Fiesta 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):

 

     (unaudited)
Three Months Ended
March 31,		  
     2012     2011  

Segment Revenues:

     

Pollo Tropical

    $ 57,834      $ 52,235   

Taco Cabana

      68,308        63,381   
  

 

 

    

 

 

  

Total revenues

    $ 126,142      $ 115,616   
  

 

 

    

 

 

  

Change in Comparable Restaurant Sales: (a)

     

Pollo Tropical

      9.4 %      13.5 % 

Taco Cabana

      6.1 %      2.0 % 

Adjusted Segment EBITDA: (b)

     

Pollo Tropical

    $ 11,214      $ 9,870   

Taco Cabana

      6,198        6,342   

Average Sales per Restaurant: (c)

     

Pollo Tropical

      632        577   

Taco Cabana

      434        408   

Number of Company Owned Restaurants:

     

Pollo Tropical

      86        90   

Taco Cabana

      157        156   
  

 

 

    

 

 

  

Total company owned restaurants

      243        246   
  

 

 

    

 

 

  

Restaurant openings:

     

Pollo Tropical

      —          —     

Taco Cabana

      —          1   
  

 

 

    

 

 

  

Total new restaurant openings

      —          1   

Restaurant closings:

     

Pollo Tropical

      (5 )      (1 ) 

Taco Cabana

      (1 )      —     
  

 

 

    

 

 

  

Net change in restaurants

      (6 )      —     
  

 

 

    

 

 

  

 

(a) Restaurants are included in comparable restaurant sales after they have been open for 18 months.
(b) Adjusted Segment EBITDA is defined as earnings attributable to the applicable segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense, and other income and expense. Adjusted Segment EBITDA is used because it is the measure of segment profit or loss reported to our chief operating decision maker for purposes of allocating resources to the segments and assessing each segment’s performance. This may not be necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.
(c) Average sales for company-owned or operated restaurants are derived by dividing restaurant sales for such period for the applicable segment by the average number of restaurants for the applicable segment for such period.

Fiesta Restaurant Group, Inc.

Unaudited Consolidated Pro Forma Statement of Operations

Three Months Ended March 31, 2012

(in thousands except per share amounts)

 

     Historical     Pro Forma
Adjustments (a)		     Pro
Forma		  

Revenues:

       

Restaurant sales

    $ 125,566      $ —        $ 125,566   

Franchise royalty revenues and fees

      576          576   
  

 

 

    

 

 

    

 

 

  

Total revenues

      126,142        —          126,142   

Costs and expenses:

       

Cost of sales

      40,784          40,784   

Restaurant wages and related expenses

      33,825          33,825   

Restaurant rent expense

      3,967        1,932   (b)      5,899   

Other restaurant operating expenses

      15,829          15,829   

Advertising expense

      4,295          4,295   

General and administrative expenses

      11,080          11,080   

Depreciation and amortization

      4,840        (518 ) (b)      4,322   

Impairment and other lease charges

      6,900          6,900   
  

 

 

    

 

 

    

 

 

  

Total costs and expenses

      121,520        1,414        122,934   
  

 

 

    

 

 

    

 

 

  

Income from operations

      4,622        (1,414 )      3,208   

Interest expense

      7,969        (2,587 ) (b)      5,382   
  

 

 

    

 

 

    

 

 

  

Income (loss) before income taxes

      (3,347 )      1,173        (2,174 ) 

Provision (benefit) for income taxes

      (1,482 )      469   (b)      (1,013 ) 
  

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ (1,865 )    $ 704      $ (1,161 ) 
  

 

 

    

 

 

    

 

 

  

Basic and diluted net income (loss) per share

    $ (0.08 )    $ 0.03      $ (0.05 ) 
  

 

 

    

 

 

    

 

 

  

Basic and diluted weighted average common shares outstanding

      23,162        23,162        23,162   

 

(a) The unaudited consolidated pro forma statement of operations for the three months ended March 31, 2012 gives effect to the qualification for sale-leaseback accounting of certain real property leases (and the treatment of such leases as operating leases) due to the cure or elimination of certain provisions that previously precluded sale-leaseback accounting in the separate financial statements of Fiesta Restaurant Group causing these transactions to be accounted for under the financing method. This was primarily due to guarantees from Carrols Corporation, our parent company prior to the spin-off completed on May 7, 2012, which were considered guarantees from a related party. Such leases qualified for sale-leaseback accounting upon the spin-off from Carrols Restaurant Group. The pro forma data as presented, gives effect to this accounting treatment as if such events occurred as of January 1, 2012.
(b) The increase in rent expense, which is net of the amortization of deferred gains from the recognition of proceeds from these transactions as sales, the decrease in depreciation expense and the decrease in interest expense reflect the qualification for sale-leaseback treatement of the leases described in (a) as operating leases, net of tax at 40%.

Fiesta Restaurant Group, Inc. Reports