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Burger King Worldwide, Inc. Reports Third Quarter 2012 Results



  Burger King Worldwide, Inc. Reports Third Quarter 2012 Results

    Burger King Worldwide Reports Fifth Consecutive Quarter of System-wide
        Comparable Sales Growth and Initiates Quarterly Cash Dividend

Business Wire

MIAMI -- October 29, 2012

Burger King Worldwide, Inc. (NYSE: BKW) today reported financial results for
its third quarter ended September 30, 2012.

Third Quarter Highlights:

  * System-wide comparable sales increased 1.4% and system-wide sales
    increased 3.9% on a constant currency basis
  * Adjusted EBITDA increased 6% on an organic basis to $162.0 million
  * Adjusted Diluted EPS increased 11% to $0.17
  * Refinanced Term Loan B, lowering annualized cash interest costs by
    approximately $25 million
  * Initiated new quarterly cash dividend of $0.04 per share

BKW Chief Executive Officer Bernardo Hees said, “We completed our first full
quarter as a public company with continued positive momentum despite the
challenging global economic environment. BKW is fortunate to have one of the
most widely recognized and resilient brands in the global QSR industry and we
are proud of the hard work and dedication of our employees and franchisees who
are striving to deliver a strong finish to a critical year for the BURGER
KING® system. In the U.S. and Canada, we are executing on our four pillar
strategy, while internationally we completed additional refranchisings and
development agreements that we believe will accelerate restaurant growth in
the years to come.” Chief Financial Officer Daniel Schwartz added, “We are
excited to begin returning cash to our shareholders with the initiation of a
quarterly cash dividend, underscoring our confidence in BKW’s business model
and commitment to disciplined capital allocation.”

Consolidated Financial Highlights

                      Results                        Variance
                      Three Months Ended September   $                %
                      30,
                      2012             2011          Favorable / (Unfavorable)
                      ($ in millions, except per share data)
                                                                       
System-wide
Comparable Sales      1.4      %       1.6      %
Growth^1
System-wide Sales     3.9      %       3.6      %
Growth^1
                                                                       
Net Restaurant        63               59            4                6.8%
Growth
                                                                       
Total Revenues        $451.1           $607.7        ($156.6   )      (25.8%)
Adjusted EBITDA^2     $162.0           $161.0        $1.0             0.6%
Adjusted EBITDA       35.9     %       26.5     %    nm               9.4%
Margin^2
Adjusted Net          $61.1            $54.2         $6.9             12.7%
Income^2
Adjusted Diluted
Earnings Per          $0.17            $0.16         $0.02            10.6%
Share^2
Net Income            $6.6             $38.8         ($32.2    )      (83.0%)
Diluted Earnings      $0.02            $0.11         ($0.09    )      (83.3%)
Per Share

(1) System-wide comparable sales growth and system-wide sales growth are
calculated on a constant currency basis and include sales at franchise
restaurants and company-owned restaurants.

(2) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted
Diluted Earnings Per Share are non-GAAP financial measures. Please refer to
“Non-GAAP Reconciliations” for further detail.

Organic revenue growth was 0.2%, excluding the impact of refranchising and FX
headwinds. On a reported basis, total revenues decreased 25.8% to $451.1
million, compared to $607.7 million in the prior year period due to
refranchising transactions in the U.S. and Canada, EMEA and APAC as well as
unfavorable FX impact, partially offset by comparable sales growth and
increased franchise and property revenues.

Organic Adjusted EBITDA growth was 6.3%, excluding the impact of refranchising
and FX headwinds. On a reported basis, Adjusted EBITDA increased 0.6% to
$162.0 million, compared to $161.0 million in the prior year period. Organic
growth was driven by comparable sales and net restaurant growth, as well as
G&A cost control, while growth was lower on a reported basis due to
significant progress on our global refranchising initiative and FX headwinds
primarily related to a weaker Euro. Year to date, Adjusted EBITDA grew 11%.

Adjusted net income and Adjusted Diluted EPS increased 12.7% and 10.6%,
respectively, compared to the prior year, primarily due to an increase in
Adjusted EBITDA, lower Depreciation and Amortization and lower interest
expense. Year to date, Adjusted Net Income increased 26% and Adjusted Diluted
EPS grew 25%.

Operational and Segment Highlights

System-wide comparable sales growth was positive across all segments except
APAC. The U.S. and Canada delivered 1.6% comparable sales growth driven by the
company’s Summer BBQ and Chicken offerings. The company was pleased with the
results of its limited time offerings and progress in attracting a more
diverse customer base, but experienced a deceleration in comparable sales
growth due to more challenging prior year comparisons and the loss of some
value based traffic.

EMEA delivered comparable sales growth of 1.8%, driven by double digit
comparable store sales growth in the company’s expanding Russian market,
continued success of “Kings of the Day” promotions in the United Kingdom, and
“King of the Month” deals in Germany. Performance in Southern Europe was
softer, with the company’s key Spain market showing deceleration as economic
conditions deteriorated during the quarter.

Latin America and the Caribbean (“LAC”) delivered comparable sales growth of
2.7%, despite challenging prior year comparisons in each of the company’s key
markets. BKW has implemented new value initiatives in Brazil and Mexico in
October to balance its menu options and complement premium offerings such as
the Picanha burger in Brazil, and is seeing initial signs of success in
driving incremental traffic.

APAC comparable sales declined by 2.2%, driven by weaker results in Australia
and Korea as well as a particularly challenging prior year comparison in New
Zealand, which hosted the rugby world cup in 2011.

As part of BKW’s global refranchising strategy, the company refranchised 221
company-owned restaurants during the quarter, including 182 restaurants in the
U.S. and 39 restaurants internationally. In connection with this quarter’s
refranchising transactions, BKW received cash proceeds of $31.6 million,
development commitments both domestically and internationally, and domestic
re-imaging commitments for 356 restaurants.

As part of BKW’s international expansion strategy, the company announced new
Master Franchise and Development agreements with our existing Malaysian
franchisee, Rancak Selera, to support the acceleration of restaurant growth in
Singapore and Malaysia. Rancak Selera is a portfolio company of Ekuiti
Nasional Berhad (Ekuinas), a government-linked private equity fund management
company established to create the next generation of leading Malaysian
companies. In connection with the Master Franchise and Development agreements,
BKW refranchised 38 restaurants in Singapore to Rancak Selera and received a
development commitment that is expected to more than double the BURGER KING®
brand’s restaurant count in Singapore and Malaysia over the next 5 years.

Cash and Liquidity

At quarter end, total debt was $3.1 billion and net debt was $2.6 billion.
During the quarter, BKW refinanced its existing Term Loan B facility with a
new $1,735 million Term Loan A and Term Loan B facility. The new Term Loan A
pays interest at LIBOR plus 2.25% and the new Term Loan B pays interest at
LIBOR plus 2.75% with a 1.00% LIBOR floor. As a result of the refinancing
transaction and based on three month LIBOR at the time of closing, BKW expects
to realize annualized cash interest savings of approximately $25 million. Due
to the improvement in net debt and in trailing twelve month Adjusted EBITDA,
the net debt to Adjusted EBITDA ratio improved to 4.1x at September 30, 2012
from 4.6x at December 31, 2011.

Initiation of Quarterly Cash Dividend

The company also announced that its Board of Directors has approved the
initiation of a quarterly cash dividend. On October 28, 2012, the Board
declared the company’s first quarterly cash dividend of $0.04 per share, which
will be paid on November 29, 2012 to shareholders of record at the close of
business on November 9, 2012. Future dividends will be determined at the
discretion of the Board of Directors.

Investor Conference Call

The company will host an investor conference call and webcast at 9:00 a.m.
EDT, Monday, October 29, 2012, to review financial results for the quarter
ended September 30, 2012. The earnings call will be broadcast live via the
company's investor relations website at http://investor.bk.com and will be
available for replay. The dial-in number is 866.244.6521 for U.S. callers and
703.639.1157 for international callers.

About Burger King Worldwide

Founded in 1954, BURGER KING^® (NYSE: BKW) is the second largest fast food
hamburger chain in the world. The original HOME OF THE WHOPPER^®, the BURGER
KING^® system operates in over 12,600 locations serving over 11 million guests
daily in 83 countries and territories worldwide. Approximately 95 percent of
BURGER KING^® restaurants are owned and operated by independent franchisees,
many of them family-owned operations that have been in business for decades.
To learn more about Burger King Worldwide, please visit the company's website
at www.bk.com or follow us on Facebook and Twitter.

Forward-Looking Statements

This press release contains certain forward-looking statements, which reflect
management's expectations regarding future events and operating performance
and speak only as of the date hereof. These forward-looking statements are not
guarantees of future performance and involve a number of risks and
uncertainties. These forward-looking statements include statements about the
company’s expectations and belief regarding its ability to deliver a strong
finish to a critical year for the BURGER KING® system; its expectations and
belief regarding its ability to execute on its four pillar strategy in the
U.S. and Canada and accelerate restaurant growth internationally; its
expectations and belief regarding the cash flow generated by its business
model and its ability to achieve annualized cash interest savings of
approximately $25 million; its expectations and belief regarding the company’s
ability to drive incremental traffic in Brazil and Mexico and its expectations
regarding its ability to double its restaurant count in Singapore and Malaysia
over the next five years. The factors that could cause actual results to
differ materially from the company’s expectations are detailed in the
company's filings with the Securities and Exchange Commission, such as its
annual and quarterly reports and current reports on Form 8-K, including the
following: risks related to the company’s ability to successfully implement
its domestic and international growth strategy; risks related to global
economic or other business conditions that may affect the desire or ability of
customers to purchase the company’s products; risks related to the financial
strength of the company’s franchisees; risks related to the company’s
substantial indebtedness; risks related to the company’s ability to compete
domestically and internationally in an intensely competitive industry; and
risks related to the effectiveness of the company’s marketing and advertising
programs.

                                                                      
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
                                          
                                 Three Months Ended
                                 September 30,           Increase / (Decrease)
                                 2012      2011          $             %
                                 (In millions, except per share data)
Revenues:
Company restaurant revenues      $ 244.6   $ 422.8       $  (178.2 )   (42.1)%
Franchise and property             206.5     184.9          21.6       11.7%
revenues
Total revenues                     451.1     607.7          (156.6 )   (25.8)%
Company restaurant expenses:
Food, paper and product costs      79.7      134.9          (55.2  )   (40.9)%
Payroll and employee benefits      71.9      122.3          (50.4  )   (41.2)%
Occupancy and other operating      64.7      113.0          (48.3  )   (42.7)%
costs
Total Company restaurant           216.3     370.2          (153.9 )   (41.6)%
expenses
Franchise and property             34.7      25.3           9.4        37.2%
expenses
Selling, general and               76.0      103.3          (27.3  )   (26.4)%
administrative expenses
Other operating (income)           30.3      (2.7  )        33.0       NM
expense, net
Total operating costs and          357.3     496.1          (138.8 )   (28.0)%
expenses
Income from operations             93.8      111.6          (17.8  )   (15.9)%
Total interest expense, net        57.3      59.4           (2.1   )   (3.5)%
Loss on early extinguishment       23.0      -              23.0       NM
of debt
Income before income taxes         13.5      52.2           (38.7  )   (74.1)%
Income tax expense                 6.9       13.4           (6.5   )   (48.5)%
Net income                       $ 6.6     $ 38.8        $  (32.2  )   (83.0)%
                                                                        
Earnings per share:
Basic                            $ 0.02    $ 0.11        $  (0.09  )   (83.1)%
Diluted                          $ 0.02    $ 0.11        $  (0.09  )   (83.3)%
Weighted average shares
outstanding
Basic                              350.0     348.3          1.7        0.5%
Diluted                            355.0     348.3          6.8        1.9%
                                                                        
NM - not meaningful
                                                                        

                                                                      
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
                                          
                               Nine Months Ended
                               September 30,             Increase / (Decrease)
                               2012        2011          $             %
                               (In millions, except per share data)
Revenues:
Company restaurant revenues    $ 986.7     $ 1,234.3     $  (247.6 )   (20.1)%
Franchise and property           575.1       520.8          54.3       10.4%
revenues
Total revenues                   1,561.8     1,755.1        (193.3 )   (11.0)%
Company restaurant expenses:
Food, paper and product          324.7       397.3          (72.6  )   (18.3)%
costs
Payroll and employee             291.6       364.5          (72.9  )   (20.0)%
benefits
Occupancy and other              259.7       334.3          (74.6  )   (22.3)%
operating costs
Total Company restaurant         876.0       1,096.1        (220.1 )   (20.1)%
expenses
Franchise and property           87.0        71.6           15.4       21.5%
expenses
Selling, general and             266.8       303.0          (36.2  )   (11.9)%
administrative expenses
Other operating (income)         26.2        9.8            16.4       NM
expense, net
Total operating costs and        1,256.0     1,480.5        (224.5 )   (15.2)%
expenses
Income from operations           305.8       274.6          31.2       11.4%
Total interest expense, net      173.6       165.7          7.9        4.8%
Loss on early extinguishment     34.2        19.6           14.6       74.5%
of debt
Income before income taxes       98.0        89.3           8.7        9.7%
Income tax expense               28.9        26.2           2.7        10.3%
Net income                     $ 69.1      $ 63.1        $  6.0        9.5%
                                                                        
Earnings per share:
Basic                          $ 0.20      $ 0.18        $  0.02       9.1%
Diluted                        $ 0.20      $ 0.18        $  0.01       7.9%
Weighted average shares
outstanding
Basic                            349.4       348.2          1.2        0.4%
Diluted                          353.3       348.2          5.2        1.5%
                                                                        
NM - not meaningful
                                                                        

                                                                 
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
                                                                   
                                              As of
                                              September 30,       December 31,
                                              2012                2011
ASSETS                                        (In millions, except share data)
Current assets:
Cash and cash equivalents                     $    482.8          $  459.0
Trade and notes receivable, net                    156.5             152.8
Prepaids and other current assets, net             107.3             69.2
Deferred income taxes, net                         26.5              43.1     
Total current assets                               773.1             724.1
                                                                   
Property and equipment, net of accumulated
depreciation of $190.4 million and $150.1 
million,                                           878.5             1,026.5

respectively
Intangible assets, net                             2,789.7           2,823.3
Goodwill                                           640.6             657.7
Net investment in property leased to               229.1             242.2
franchisees
Other assets, net                                  169.2             134.6    
Total assets                                  $    5,480.2        $  5,608.4  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and drafts payable                   $    62.0           $  98.4
Accrued advertising                                87.4              97.4
Other accrued liabilities                          212.8             242.7
Current portion of long term debt and              50.0              33.5     
capital leases
Total current liabilities                          412.2             472.0
                                                                   
Term debt, net of current portion                  2,910.5           3,010.3
Capital leases, net of current portion             98.0              95.4
Other liabilities, net                             372.0             366.2
Deferred income taxes, net                         566.6             615.3    
Total liabilities                                  4,359.3           4,559.2  
                                                                   
Commitments and Contingencies
                                                                   
Stockholders' equity:
Preferred stock, $0.01 par value;
200,000,000 shares authorized; no shares           -                 -
issued or outstanding
Common stock, $0.01 par value;
2,000,000,000 shares authorized;
350,113,909 shares issued and outstanding                          
at September 30, 2012;
348,245,293 shares issued and outstanding          3.5               3.5
at December 31, 2011
Additional paid-in capital                         1,201.3           1,186.6
Retained earnings (accumulated deficit)            41.5              (27.6   )
Accumulated other comprehensive loss               (125.4   )        (113.3  )
Total stockholders' equity                         1,120.9           1,049.2  
Total liabilities and stockholders' equity    $    5,480.2        $  5,608.4  
                                                                              

                                                                 
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                                                   Nine Months Ended
                                                   September 30,
                                                   2012           2011
Cash flows from operating activities:              (In millions)
Net income                                         $ 69.1         $ 63.1
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        96.0           103.1
Loss on early extinguishment of debt                 34.2           19.6
Amortization of deferred financing costs and         43.6           30.7
debt issuance discount
Loss (gain) on remeasurement of foreign              (5.4     )     4.4
denominated transactions
Amortization of prior service costs                  (1.8     )     -
Realized loss on terminated caps/swaps               10.7           0.3
Net loss (gain) on refranchisings and                10.4           (2.9     )
dispositions of assets
Bad debt expense, net of recoveries                  2.9            3.9
Share-based compensation                             9.3            0.9
Deferred income taxes                                8.0            (16.3    )
Changes in current assets and liabilities,
excluding acquisitions and dispositions:
Trade and notes receivables                          (4.1     )     8.6
Prepaids and other current assets                    (8.9     )     91.9
Accounts and drafts payable                          (34.7    )     (5.0     )
Accrued advertising                                  (31.0    )     7.2
Other accrued liabilities                            (47.7    )     (9.0     )
Other long-term assets and liabilities               (6.0     )     14.2      
Net cash provided by operating activities            144.6          314.7     
Cash flows from investing activities:
Payments for property and equipment                  (37.7    )     (42.0    )
Proceeds from refranchisings, disposition of         70.0           23.2
assets and restaurant closures
Investment in/advances to unconsolidated             -              (4.5     )
affiliates
Payments for acquired franchisee operations, net     (15.3    )     -
of cash acquired
Return of investment on direct financing leases      10.4           7.8
Restricted cash                                      -              (4.3     )
Other investing activities                           -              0.5       
Net cash provided by (used for) investing            27.4           (19.3    )
activities
Cash flows from financing activities:
Proceeds from term debt                              1,733.5        1,860.0
Proceeds from discount notes                         -              401.5
Repayments of term debt and capital leases           (1,754.7 )     (1,866.3 )
Extinguishment of debt                               (112.8   )     -
Payment of financing costs                           (16.0    )     (32.6    )
Proceeds from issuance of shares                     1.3            1.8       
Net cash provided by (used for) financing            (148.7   )     364.4     
activities
Effect of exchange rates on cash and cash            0.5            (4.2     )
equivalents
Increase (decrease) in cash and cash equivalents     23.8           655.6
Cash and cash equivalents at beginning of period     459.0          207.0     
Cash and cash equivalents at end of period         $ 482.8        $ 862.6     
                                                                   

                 BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

                             Key Business Metrics

We evaluate our restaurants and assess our business based on the following
operating metrics.

System sales growth refers to the change in sales at all company-owned and
franchise restaurants in one period from the same period in the prior year.
Comparable sales growth refers to the change in restaurant sales in one period
from the same prior year period for restaurants that have been open for
thirteen months or longer. Company-owned restaurants refranchised during a
quarterly period are included with franchise restaurants for the purpose of
calculating comparable sales growth for the quarter. Comparable sales and
sales growth are measured on a constant currency basis, which means that
results exclude the effect of foreign currency translation and are calculated
by translating current year results at prior year exchange rates. We analyze
key operating metrics on a constant currency basis as this helps identify
underlying business trends, without distortion from the effects of currency
movements (“FX Impact”).

Franchise sales represent sales at all franchise restaurants and are revenues
to our franchisees. We do not record franchise sales as revenues; however, our
franchise revenues include royalties based on a percentage of franchise sales.
Average restaurant sales refer to the total sales divided by total store
months for all company-owned and franchise restaurants open during the period.
Net refranchisings refer to sales of company-owned restaurants to franchisees,
net of acquisitions of franchise restaurants by us.

Consolidated BKW                                            
                                                              
Key Business Metrics
                                                              
                                               Three Months Ended
                                               September 30,
                                               2012          2011
                                                              
System sales growth ^(1)                         3.9     %     3.6     %
Franchise sales ^(2)                           $ 3,830.0     $ 3,634.0
Comparable sales growth ^(3)
Company                                          0.4     %     3.2     %
Franchise                                        1.5     %     1.4     %
System                                           1.4     %     1.6     %
Average restaurant sales (in thousands) ^(4)   $ 326.4       $ 331.2
Net Restaurant Growth (NRG)
Company                                          (2      )     -
Franchise                                        65            59
System                                           63            59
Net refranchisings ^(5)                          221           35
Restaurant counts at period end
Company                                          595           1,295
Franchise                                        12,072        11,100
System                                           12,667        12,395
CRM %                                            11.6    %     12.4    %
                                                              

                                                                
U.S. & Canada
                                                                  
Key Business Metrics
                                                                  
                                    Three Months Ended
                                    September 30,
                                    2012          2011
                                    Favorable / (Unfavorable)
Systemwide sales growth               1.3     %     (0.4    )%
Comparable sales growth
Company                               0.7     %     1.8     %
Franchise                             1.7     %     (0.6    )%
System                                1.6     %     (0.3    )%
NRG
Company                               (3      )     (1      )
Franchise                             (13     )     (4      )
System                                (16     )     (5      )
Net Refranchisings                    182           35
Restaurant counts at period end
Company                               361           942
Franchise                             7,092         6,581
System                                7,453         7,523
                                                                  
                                                                  
                                    Three Months Ended           Variance
                                    September 30,                Favorable/
                                    2012          2011           (Unfavorable)
                                                                  
Company:
Company restaurant revenues         $ 159.9       $ 302.2        $  (142.3  )
CRM                                   18.3          37.6            (19.3   )
CRM %                                 11.4    %     12.4    %       (1.0    )%
Company restaurant expenses as a
% of Company restaurant revenue:
Food and paper                        32.9    %     32.2    %       (0.7    )%
Payroll and benefits                  30.2    %     30.1    %       (0.1    )%
Depreciation and amortization         5.5     %     5.6     %       0.1     %
Other occupancy and operating         20.0    %     19.7    %       (0.3    )%
                                                                  
Franchise:
Franchise and property revenues     $ 123.5       $ 103.8        $  19.7
Franchise and property expenses       26.4          17.5            (8.9    )
Franchise sales                       2,139.0       1,968.8         170.2
Segment SG&A                          23.8          27.8            4.0
Segment depreciation and              21.9          25.3            3.4
amortization
Segment income                        113.5         121.4           (7.9    )
Segment margin                        40.0    %     29.9    %       10.1    %
                                                                             

                                                                
EMEA
                                                                  
Key Business Metrics
                                                                  
                                     Three Months Ended
                                     September 30,
                                     2012          2011
                                     Favorable / (Unfavorable)
Systemwide sales growth                11.0    %     5.8     %
Comparable sales growth
Company                                2.1     %     6.1     %
Franchise                              1.8     %     4.6     %
System                                 1.8     %     4.7     %
NRG
Company                                -             (1      )
Franchise                              33            40
System                                 33            39
Net Refranchisings                     1             0
Restaurant counts at period end
Company                                133           192
Franchise                              2,861         2,643
System                                 2,994         2,835
                                                                  
                                                                  
                                     Three Months Ended          Variance
                                     September 30,               Favorable/
                                     2012          2011          (Unfavorable)
                                                                  
Company:
Company restaurant revenues          $ 57.9        $ 84.8        $  (26.9  )
CRM                                    7.3           10.6           (3.3   )
CRM %                                  12.6    %     12.5    %      0.1    %
Company restaurant expenses as a %
of Company restaurant revenue:
Food and paper                         29.9    %     29.1    %      (0.8   )%
Payroll and benefits                   33.6    %     30.5    %      (3.1   )%
Depreciation and amortization          2.4     %     3.4     %      1.0    %
Other occupancy and operating          21.5    %     24.5    %      3.0    %
                                                                  
Franchise:
Franchise and property revenues      $ 53.8        $ 54.0        $  (0.2   )
Franchise and property expenses        7.8           6.5            (1.3   )
Franchise sales                        1,017.2       1,008.3        8.9
Segment SG&A                           14.5          19.9           5.4
Segment depreciation and               4.0           5.5            1.5
amortization
Segment income                         42.8          43.7           (0.9   )
Segment margin                         38.3    %     31.5    %      6.8    %
                                                                  

                                                                
LAC
                                                                  
Key Business Metrics
                                                                  
                                     Three Months Ended
                                     September 30,
                                     2012            2011
                                     Favorable / (Unfavorable)
Systemwide sales growth                 4.3    %       15.6  %
Comparable sales growth
Company                                 (5.5   )%      12.1  %
Franchise                               3.1    %       10.5  %
System                                  2.7    %       10.5  %
NRG
Company                                 1              -
Franchise                               24             11
System                                  25             11
Net Refranchisings                      -              -
Restaurant counts at period end
Company                                 98             97
Franchise                               1,182          1,079
System                                  1,280          1,176
                                                                  
                                                                  
                                     Three Months Ended          Variance
                                     September 30,               Favorable/
                                     2012            2011        (Unfavorable)
                                                                  
Company:
Company restaurant revenues          $  15.8         $ 17.9      $   (2.1  )
CRM                                     2.1            3.7           (1.6  )
CRM %                                   13.3   %       20.7  %       (7.4  )%
Company restaurant expenses as a %
of Company restaurant revenue:
Food and paper                          39.7   %       38.7  %       (1.0  )%
Payroll and benefits                    12.9   %       11.8  %       (1.1  )%
Depreciation and amortization           9.9    %       8.9   %       (1.0  )%
Other occupancy and operating           24.2   %       19.9  %       (4.3  )%
                                                                  
Franchise:
Franchise and property revenues      $  17.7         $ 16.0      $   1.7
Franchise and property expenses         -              0.5           0.5
Franchise sales                         338.5          322.7         15.8
Segment SG&A                            4.2            5.0           0.8
Segment depreciation and                1.6            1.7           0.1
amortization
Segment income                          17.2           15.9          1.3
Segment margin                          51.3   %       46.9  %       4.4   %
                                                                  

                                                                
APAC
                                                                  
Key Business Metrics
                                                                  
                                     Three Months Ended
                                     September 30,
                                     2012           2011
                                     Favorable / (Unfavorable)
Systemwide sales growth                 (1.5   )%     14.5  %
Comparable sales growth
Company                                 (2.4   )%     7.0   %
Franchise                               (2.2   )%     (1.8  )%
System                                  (2.2   )%     (1.5  )%
NRG
Company                                 -             2
Franchise                               21            12
System                                  21            14
Net Refranchisings                      38            -
Restaurant counts at period end
Company                                 3             64
Franchise                               937           797
System                                  940           861
                                                                  
                                                                  
                                     Three Months Ended          Variance
                                     September 30,               Favorable/
                                     2012           2011         (Unfavorable)
                                                                  
Company:
Company restaurant revenues          $  11.0        $ 17.9       $   (6.9  )
CRM                                     0.6           0.7            (0.1  )
CRM %                                   5.5    %      3.9   %        1.6   %
Company restaurant expenses as a %
of Company restaurant revenue:
Food and paper                          31.8   %      33.9  %        2.1   %
Payroll and benefits                    19.6   %      19.3  %        (0.3  )%
Depreciation and amortization           4.7    %      6.0   %        1.3   %
Other occupancy and operating           38.4   %      36.9  %        (1.5  )%
                                                                  
Franchise:
Franchise and property revenues      $  11.4        $ 11.1       $   0.3
Franchise and property expenses         0.5           0.8            0.3
Franchise sales                         335.3         334.2          1.1
Segment SG&A                            2.7           4.9            2.2
Segment depreciation and                1.1           1.8            0.7
amortization
Segment income                          9.9           7.9            2.0
Segment margin                          44.2   %      27.2  %        17.0  %
                                                                  

                                                                        
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

Supplemental Disclosure
                                                                          
Other Operating (Income) Expense, net
                                                                          
                                       Three Months Ended    Nine Months Ended
                                       September 30,         September 30,
                                       2012       2011       2012        2011
Net (gains) losses on disposal of
assets, restaurant closures and        $ 14.1     $ (2.7 )   $  15.2     $ -
refranchisings
Litigation settlements and reserves,     0.8        0.1         1.3        0.7
net
Foreign exchange net (gains) losses      1.5        (0.1 )      (5.3 )     6.7
Loss on termination of interest rate     8.7        -           8.7        -
cap
Equity in net (income) loss from         (0.4 )     0.2         1.4        0.9
unconsolidated affiliates
Other, net                               5.6        (0.2 )      4.9        1.5
Other operating (income) expense,      $ 30.3     $ (2.7 )   $  26.2     $ 9.8
net
                                                                          

                                                                      
Selling, general and administrative expenses
                                                                        
                                                                        
                                        Three Months Ended   Nine Months Ended
                                        September 30,        September 30,
                                        2012       2011      2012      2011
                                                                        
Selling expenses                        $  10.4    $ 18.7    $ 40.5    $ 58.1
Management general and administrative      52.2      62.7      164.3     189.6
expenses
Share-based compensation                   1.7       0.3       3.4       0.9
Depreciation and amortization              4.1       4.1       12.8      11.9
2010 Transaction costs                     -         1.0       -         2.1
Global restructuring and related           -         10.5      -         32.7
professional fees
Field optimization project costs           -         5.5       -         7.2
Global portfolio realignment project       7.0       0.5       20.1      0.5
costs
Business combination agreement             0.6       -         25.7      -
expenses
Total general and administrative           65.6      84.6      226.3     244.9
expenses
Selling, general and administrative     $  76.0    $ 103.3   $ 266.8   $ 303.0
expenses
                                                                        

                 BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

                         Non-GAAP Financial Measures

                                 (Unaudited)

To supplement its condensed consolidated financial statements presented on a
U.S. Generally Accepted Accounting Principles (“GAAP”) basis, the Company
reports the following non-GAAP financial measures: EBITDA, Adjusted EBITDA,
Adjusted Net Income, adjusted income before income taxes, adjusted income tax
expense, net debt, TTM Adjusted EBITDA, net debt to TTM Adjusted EBITDA ratio,
Organic revenue growth and Organic Adjusted EBITDA growth.

EBITDA is defined as earnings (net income or loss) before interest, taxes,
depreciation and amortization, and is used by management to measure operating
performance of the business.

Adjusted EBITDA is defined as EBITDA excluding the impact of share-based
compensation, other operating (income) expenses, net, and all other
specifically identified costs associated with non-recurring projects,
including Transaction costs, global restructuring and related professional
fees, field optimization project costs, global portfolio realignment project
costs and Business Combination Agreement expenses. Adjusted EBITDA is used by
management to measure operating performance of the business, excluding
specifically identified items that management believes do not directly reflect
our core operations, and represents our measure of segment income.

Adjusted Net Income is used by management to evaluate and forecast earnings
from ongoing operations excluding the impact of unusual items. This measure is
used by management to evaluate and forecast earnings from ongoing operations,
as further defined in the non-GAAP reconciliations. Adjusted Diluted EPS is
calculated by dividing Adjusted Net Income by the number of diluted shares of
the Company during the reporting period. Net debt to TTM Adjusted EBITDA ratio
is used by management to evaluate the Company’s current and prospective
financial position.

Organic revenue growth and Organic Adjusted EBITDA growth are non-GAAP
measures that exclude both FX Impact and net refranchisings. Management
believes that organic growth is an important metric for measuring the core
operating performance of the business as it excludes the impact of our
refranchising activities and foreign currency exchange rates.

                                                                                                                               
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

Organic growth in Revenue and Adjusted EBITDA for the Three Months Ended

September 30, 2012

(Unaudited)
                                                                                                                                 
$ in
millions
                                                                              Refran.       Adjusted     FX
                            Actual                    Q3 '12 vs. Q3 '11       Impact        Q3 '11       Impact     Organic Growth
                            Q3 '12       Q3 '11       $             %         $             $            $          $           %
             Calculation:                A            B                       C             A+C=D        E          B-C-E=F     F/D
Revenue
North                       $ 283.4      $ 406.0        ($122.6 )   (30.2%)     ($119.1 )   $ 286.9      ($0.6  )     ($2.9 )   (1.0%)
America
EMEA                        $ 111.7      $ 138.8        ($27.1  )   (19.5%)     ($16.5  )   $ 122.3      ($13.8 )   $ 3.2       2.6%
LAC                         $ 33.5       $ 33.9         ($0.4   )   (1.2%)      -           $ 33.9       ($1.1  )   $ 0.7       2.1%
APAC                        $ 22.5       $ 29.0         ($6.5   )   (22.4%)     ($6.3   )   $ 22.7       ($0.2  )     -         -
Consolidated                $ 451.1      $ 607.7        ($156.6 )   (25.8%)     ($141.9 )   $ 465.8      ($15.7 )   $ 1.0       0.2%
                                                                                                                                 
Adjusted
EBITDA
North                       $ 113.5      $ 121.4        ($7.9   )   (6.5%)      ($3.6   )   $ 117.8      ($0.1  )     ($4.2 )   (3.6%)
America
EMEA                        $ 42.8       $ 43.7         ($0.9   )   (2.1%)      ($0.6   )   $ 43.1       ($5.2  )   $ 4.9       11.4%
LAC                         $ 17.2       $ 15.9       $ 1.3         8.2%        -           $ 15.9       -          $ 1.3       8.2%
APAC                        $ 9.9        $ 7.9        $ 2.0         25.3%     $ 0.6         $ 8.5        -          $ 1.4       16.5%
Unallocated Management        ($21.4 )     ($27.9 )   $ 6.5         (23.3%)     -             ($27.9 )   -          $ 6.5       (23.3%)
G&A
Consolidated                $ 162.0      $ 161.0      $ 1.0         0.6%        ($3.6   )   $ 157.4      ($5.3  )   $ 9.9       6.3%
                                                                                                                                 

                                                                            
Non-GAAP Financial Measures

Reconciliation of EBITDA and Adjusted EBITDA to Net Income
                                                                              
                 Three Months Ended      Nine Months Ended       Twelve Months Ended
                 September   September   September   September   September   December
                 30,         30,         30,         30,         30,         31,
EBITDA and       2012        2011        2012        2011        2012        2011
adjusted
EBITDA:          (In millions)
                                                                              
U.S. and         $ 113.5     $ 121.4     $ 354.9     $ 346.2     $ 468.6     $ 459.9
Canada
EMEA               42.8        43.7        118.4       105.7       158.7       146.0
LAC                17.2        15.9        50.2        45.6        68.5        63.9
APAC               9.9         7.9         28.7        20.9        34.5        26.7
Unallocated        (21.4 )     (27.9 )     (75.0 )     (87.5 )     (99.0 )     (111.5 )
Management G&A
Adjusted           162.0       161.0       477.2       430.9       631.3       585.0
EBITDA
Share-based
compensation       1.7         0.3         3.4         0.9         8.9         6.4
^(1)
2010
Transaction        -           1.0         -           2.1         1.6         3.7
costs ^(2)
Global
restructuring
and related        -           10.5        -           32.7        13.8        46.5
professional
fees ^(3)
Field
optimization       -           5.5         -           7.2         3.4         10.6
project costs
^(4)
Global
portfolio          7.0         0.5         20.1        0.5         27.2        7.6
realignment
project ^(5)
Business
combination        0.6         -           25.7        -           25.7        -
agreement
expenses ^(6)
Other
operating          30.3        (2.7  )     26.2        9.8         27.7        11.3    
(income)
expense, net
EBITDA             122.4       145.9       401.8       377.7       523.0       498.9
Depreciation
and                28.6        34.3        96.0        103.1       129.3       136.4   
amortization
Income from        93.8        111.6       305.8       274.6       393.7       362.5
operations
Interest           57.3        59.4        173.6       165.7       234.6       226.7
expense, net
Loss on early
extinguishment     23.0        -           34.2        19.6        35.7        21.1
of debt
Income tax         6.9         13.4        28.9        26.2        29.3        26.6    
expense
Net income       $ 6.6       $ 38.8      $ 69.1      $ 63.1      $ 94.1      $ 88.1    
                                                                                       

                                                        
Non-GAAP Financial Measures

Reconciliation of Net Income to Adjusted Net Income
                                                                    
                         Three Months Ended              Nine Months Ended
                         September 30,   September 30,   September   September
                                                         30,         30,
                         2012            2011            2012        2011
Adjusted net income      (In millions)                   (In millions)
                                                                      
Net income               $    6.6        $   38.8        $  69.1     $  63.1
Income tax expense            6.9            13.4           28.9        26.2
Income before income          13.5           52.2           98.0        89.3
taxes
Adjustments:
Franchise agreement           5.1            5.3            15.4        16.4
amortization
Amortization of
deferred financing            3.6            3.6            10.6        10.5
costs and original
issue discount
Loss on early                 23.0           -              34.2        19.6
extinguishment of debt
Other operating               30.3           (2.7   )       26.2        9.8
(income) expense, net
2010 Transaction              -              1.0            -           2.1
costs^(2)
Global restructuring
and related                   -              10.5           -           32.7
professional fees^(3)
Field optimization            -              5.5            -           7.2
project costs^(4)
Global portfolio
realignment project           7.0            0.5            20.1        0.5
costs^(5)
Business combination          0.6            -              25.7        -
agreement expenses^(6)
Total adjustments             69.6           23.7           132.2       98.8
                                                                      
Adjusted income before        83.1           75.9           230.2       188.1
income taxes
                                                                      
Adjusted income tax           22.0           21.7           68.0        59.8
expense ^(7)
                                                                      
Adjusted net income      $    61.1       $   54.2        $  162.2    $  128.3
                                                                      
                                                                      
Diluted- EPS (Adjusted   $    0.17       $   0.16        $  0.46     $  0.37
Net Income)
Diluted Weighted              355.0          348.3          353.3       348.2
Average Shares
                                                                         

                                                                 
Non-GAAP Financial Measures

Reconciliation of Adjusted Net Income and Net Income, Net Debt / TTM Adj.
EBITDA
                                                                   
                                                  As of
                                                  September 30,   December 31,
                                                  2012            2011
Net debt to adjusted EBITDA                       (In millions, except ratios)
                                                                   
Long term debt, net of current portion            $   2,910.5     $   3,010.3
Capital leases, net of current portion                98.0            95.4
Current portion of long term debt and capital         50.0            33.5
leases
Total Debt                                            3,058.5         3,139.2
                                                                   
Cash and cash equivalents                             482.8           459.0
Net debt                                              2,575.7         2,680.2
TTM adjusted EBITDA                                   631.3           585.0
                                                                   
Net debt / TTM adjusted EBITDA                    4.1x            4.6x
                                                                   

                                                 
Non-GAAP Financial Measures

Reconciliation of Net Income to TTM Adjusted EBITDA
                                                                 
                                                  Twelve Months Ended
                                                  September 30,   December 31,
                                                  2012            2011
EBITDA and adjusted EBITDA                        (In millions)
                                                                   
Net income                                        $ 94.1          $ 88.1
Interest expense, net                             234.6           226.7
Loss on early extinguishment of debt              35.7            21.1
Income tax expense                                29.3            26.6
Depreciation and amortization                     129.3           136.4
EBITDA                                            523.0           498.9
Adjustments:
Share-based compensation ^(1)                     8.9             6.4
Other operating (income) expense, net             27.7            11.3
2010 Transaction costs^(2)                        1.6             3.7
Global restructuring and related professional     13.8            46.5
fees^(3)
Field optimization project costs^(4)              3.4             10.6
Global portfolio realignment project costs^(5)    27.2            7.6
Business combination agreement expenses^(6)       25.7            -
Total adjustments                                 108.3           86.1
                                                                   
Adjusted EBITDA                                   $ 631.3         $ 585.0
                                                                   

                         Non-GAAP Financial Measures

                      Footnotes to Reconciliation Tables

(1) Represents share-based compensation expense associated with employee stock
options, and for the twelve months ended September 30, 2012 and December 31,
2011, also includes the portion of annual non-cash incentive compensation that
eligible employees elected to receive as common equity in lieu of their 2011
cash bonus.

(2) Represents expenses incurred related to 3G’s acquisition of Burger King
Holdings, Inc., the Company’s indirect wholly-owned subsidiary, in October
2010.

(3) Represents severance benefits, other severance-related costs incurred in
connection with the Company’s global restructuring efforts, the voluntary
resignation severance program offered for a limited time to eligible employees
based at its Miami headquarters and additional reductions in corporate and
field positions in the U.S. This restructuring plan was completed in 2011.

(4) Represents severance-related costs, compensation costs for overlap
staffing, travel expenses, consulting and training costs incurred in
connection with the Company’s efforts to expand and enhance its U.S. field
organization. This project was completed in 2011.

(5) Represents costs associated with an ongoing project to realign the
Company’s global restaurant portfolio by refranchising Company-owned
restaurants and establishing strategic partners and joint ventures to
accelerate development. These costs primarily include severance related costs
and fees for professional services.

(6) Represents share-based compensation expense related to awards granted
during the three and nine months ended September 30, 2012 resulting from the
increase in equity value of Burger King Worldwide Holdings, Inc. implied by
the business combination agreement and professional fees and other transaction
costs associated with the business combination agreement.

(7) Adjusted income tax expense for the three and nine months ended September
30, 2012 and 2011 is calculated using the Company’s statutory tax rate in the
jurisdiction in which the costs were incurred.

Contact:

Burger King Worldwide
Investors
Josh Kobza, 305-378-7696
Director, Investor Relations
investor@whopper.com
or
Media
Miguel Piedra, 305-378-7277
Vice President, Global Communications
mediainquiries@whopper.com
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