Mr. Daniel Schwartz reports
RESTAURANT BRANDS INTERNATIONAL REPORTS FULL YEAR AND FOURTH QUARTER 2015 RESULTS
Restaurant Brands International Inc. has released its financial results for the full year and fourth quarter ended Dec. 31, 2015.
Daniel Schwartz, chief executive officer of Restaurant Brands International (RBI), commented: "We had a great first year as RBI, finishing the fourth quarter with strong results at both of our iconic brands, Tim Hortons and Burger King. Successful product launches combined with significant net restaurant growth drove performance this year and our franchisees achieved meaningful levels of profitability. We continue to be excited about future opportunities at Tim Hortons and Burger King, and are committed to building long-term sustainable growth for years to come."
Full year 2015 highlights:
-
Tim Hortons (TH) comparable sales increased 5.6 per cent and Burger King (BK) comparable sales increased 5.4 per cent in constant currency;
- Delivered 155 net restaurant growth (NRG) at TH and 631 NRG at BK;
-
System-wide sales grew 9.3 per cent at TH and 10.3 per cent at BK in constant currency;
-
RBI adjusted earnings before interest, taxes, depreciation and amortization grew 21.4 per cent on an organic basis to $1,666.2-million versus prior year pro forma amount;
-
RBI adjusted diluted earnings per share were $1.18 per share;
-
Declared Restaurant Brands International dividends of 44 cents per share, up 46.7 per cent versus prior year declared dividends at Burger King Worldwide.
Fourth quarter 2015 highlights:
- TH comparable sales increased 6.3 per cent and BK comparable sales increased 3.9 per cent in constant currency;
-
Delivered 69 NRG at TH and 334 NRG at BK;
-
System-wide sales grew 12.4 per cent at TH and 8.8 per cent at BK in constant currency;
-
RBI adjusted EBITDA was up 25.4 per cent on an organic basis to $442.6-million versus prior year pro forma amount;
- RBI adjusted diluted EPS was 35 cents per share.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(In millions of U.S. dollars, except per share)
Three months ended Dec. 31, 12 months ended Dec. 31,
2015 2014 2014 PF 2015 2014 2014 PF
RBI total revenues $1,057.0 $417.8 $1,092.7 $4,052.2 $1,198.8 $4,200.3
RBI net income (loss) attributable to
common shareholders 51.7 (510.8) (3.1) 103.9 (398.8) (166.6)
RBI diluted earnings (loss) per share
attributable to common shareholders 0.25 (2.50) (0.02) 0.50 (2.32) (0.82)
TH adjusted EBITDA 243.4 34.9 208.8 906.7 34.9 816.4
BK adjusted EBITDA 199.2 189.1 189.1 759.5 726.0 726.0
RBI adjusted EBITDA 442.6 224.0 397.9 1,666.2 760.9 1,542.4
RBI adjusted net income (loss) attributable
to common shareholders 165.7 125.8 561.1 467.6
RBI adjusted diluted earnings (loss) per share
attributable to common shareholders 0.35 0.26 1.18 0.98
Strong comparable sales at both of the company's brands for 2015 resulted in RBI adjusted earnings before interest, taxes, depreciation and amortization of $1,666.2-million, up 21.4 per cent on an organic basis, excluding the impact of FX movements and compared with prior year pro forma results. At TH, full year comparable sales growth of 5.6 per cent combined with NRG of 155 resulted in 9.3-per-cent system-wide sales growth in constant currency. TH results were driven by continued strength in beverages as well as compelling new product offerings such as Nutella pockets and grilled wraps. At BK, comparable sales growth of 5.4 per cent in conjunction with full year NRG of 631 led to BK system-wide sales growth of 10.3 per cent. Comparable sales growth at BK was driven by successful new products and promotions such as the two-for-$5 platform, Chicken Fries, including buffalo and fiery flavours, and the A1 Halloween Whopper sandwich.
TH segment results
TH full year system-wide sales growth of 9.3 per cent, in constant currency, was driven by favourable comparable sales growth and NRG over the full year. In 2015, the company achieved consolidated TH comparable sales growth of 5.6 per cent, with TH Canada and TH U.S. comparable sales growth of 5.5 per cent and 6.4 per cent, respectively. The company achieved unit growth of 3.6 per cent with NRG of 155 during the year. The company ended the year with a TH restaurant count of 4,413.
Compared with prior year pro forma results, fourth quarter TH total revenues grew 10.7 per cent to $771.5-million while TH adjusted EBITDA grew 36.9 per cent to $243.4-million on an organic basis, excluding the impact of FX movements. For the full year, TH total revenues grew 8.8 per cent to $2,956.9-million while TH adjusted EBITDA grew 28.8 per cent on an organic basis to $906.7-million.
BK segment results
BK delivered strong comparable sales growth and net restaurant growth in 2015 resulting in system-wide sales growth of 10.3 per cent in constant currency versus prior year results. BK sales momentum was due to a well-balanced promotional mix and compelling product launches throughout the year. Full year global comparable sales growth of 5.4 per cent was led by strong performances in the United States and Canada (US&C), Europe, the Middle East and Africa (EMEA), Latin America and the Caribbean (LAC), and Asia-Pacific (APAC). BK added 631 net new restaurants for the full year, ending the year with total restaurant count of 15,003, a 4.4-per-cent increase in total units versus the prior year unit count.
BK Q4 revenues grew 9.7 per cent to $285.5-million, while BK adjusted EBITDA grew 12.6 per cent to $199.2-million, excluding the impact of FX movements. For the full year, BK total revenues grew 10.4 per cent to $1,095.3-million, while BK adjusted EBITDA grew 13.1 per cent to $759.5-million, excluding the impact of FX movements.
Cash and liquidity
As of Dec. 31, 2015, total debt was $8.9-billion and net debt, after adjustment for $800-million of cash and cash equivalents, was $8.2-billion, excluding original issue discounts. The company's cash balance of $800-million was down $1.0-billion versus the prior year, primarily as a result of excess cash on hand at the end of 2014 for the January, 2015, tender offer to purchase approximately $1.0-billion of TH legacy notes.
On Feb. 16, 2016, the company's board of directors declared a dividend of 14 cents per common share and Class B exchangeable partnership unit of Restaurants Brands International LP for the first quarter of 2016. The dividend is payable on April 4, 2016, to shareholders of record at the close of business on March 3, 2016.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions of U.S. dollars, except per-share data)
Three months ended Dec. 31,
2015 2014 2014 PF
Revenues
Sales $555.8 $111.7 $570.9
Franchise and property revenues 501.2 306.1 521.8
Total revenues 1,057.0 417.8 1,092.7
Cost of sales 454.9 108.7 486.0
Franchise and property expenses 138.0 64.5 169.9
Selling, general and administrative expenses 120.4 171.9 113.3
(Income) loss from equity method investments (1.6) 3.7 0.6
Other operating expenses (income), net 23.3 171.6 26.1
Total operating costs and expenses 735.0 520.4 795.9
Income from operations 322.0 (102.6) 296.8
Interest expense, net 116.0 127.8 111.3
Loss on early extinguishment of debt - 155.4 -
Income (loss) before income taxes 206.0 (385.8) 185.5
Income tax expense (benefit) 21.5 (4.5) 131.5
Net income (loss) 184.5 (381.3) 54.0
Net income (loss) attributable to non-controlling interests 65.3 (430.7) (10.4)
Preferred share dividends 67.5 13.8 67.5
Accretion of preferred shares to redemption value - 546.4 -
Net income (loss) attributable to common shareholders 51.7 (510.8) (3.1)
Earnings (loss) per common share
Basic 0.25 (1.60) (0.02)
Diluted 0.25 (2.50) (0.02)
Cash dividends declared per common share 0.13 0.08
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions of U.S. dollars, except per-share data)
12 months ended Dec. 31,
2015 2014 2014 PF
Revenues
Sales $2,169.0 $167.4 $2,263.2
Franchise and property revenues 1,883.2 1,031.4 1,937.1
Total revenues 4,052.2 1,198.8 4,200.3
Cost of sales 1,809.5 156.4 1,937.3
Franchise and property expenses 503.2 179.0 579.1
Selling, general and administrative expenses 437.7 345.4 422.7
(Income) loss from equity method investments 4.1 9.5 (3.6)
Other operating expenses (income), net 105.5 327.4 39.6
Total operating costs and expenses 2,860.0 1,017.7 2,975.1
Income from operations 1,192.2 181.1 1,225.2
Interest expense, net 478.3 279.7 452.3
Loss on early extinguishment of debt 40.0 155.4 -
Income (loss) before income taxes 673.9 (254.0) 772.9
Income tax expense 162.2 15.3 335.8
Net income (loss) 511.7 (269.3) 437.1
Net income (loss) attributable to non-controlling interests 136.6 (430.7) (212.7)
Preferred share dividends 271.2 13.8 270.0
Accretion of preferred shares to redemption value - 546.4 546.4
Net income (loss) attributable to common shareholders 103.9 (398.8) (166.6)
Earnings (loss) per common share
Basic 0.51 (1.16) (0.82)
Diluted 0.50 (2.32) (0.82)
Cash dividends declared per common share 0.44 0.30
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.