Burger King Worldwide Reports First Quarter 2013 Results

  Burger King Worldwide Reports First Quarter 2013 Results

Adjusted Diluted EPS Grows 49% to $0.17 despite a challenging QSR environment

Business Wire

MIAMI -- April 26, 2013

Burger King Worldwide, Inc. (NYSE: BKW) today reported financial results for
the first quarter ended March 31, 2013.

“We delivered strong earnings per share growth of 49% in the first quarter of
2013 in spite of a challenging economic and competitive environment that
resulted in negative comparable sales growth of 1.4% globally,” said Bernardo
Hees, Chief Executive Officer, Burger King Worldwide, Inc. “In addition, we
announced the increase of our dividend by 20% and initiated a $200 million
share repurchase program, demonstrating our positive outlook for the long-term
prospects of the business and commitment to returning cash to shareholders.
While comparable sales growth was not up to our expectations, we made progress
toward achieving our target business model and remain committed to executing
our Four Pillar strategy in the U.S. and Canada and driving net restaurant
growth internationally.”

First Quarter 2013 Highlights:

  *Global comparable sales growth fell 1.4% and system-wide sales increased
    1.1% in constant currency
  *Adjusted Diluted EPS increased 49% to $0.17
  *Adjusted EBITDA increased 4.5% on an organic basis to $144.3 million
  *Adjusted EBITDA margin increased 1,890 bps to 44.0%
  *Completed U.S. refranchising initiative
  *Paid a cash dividend of $0.05 per share in the first quarter and announced
    an increase of 20% to $0.06 per share for the second quarter
  *Authorized a $200 million share repurchase program

Consolidated Financial Highlights:

                    Results                       Variance
                      Three Months Ended March 31,   $              %
                      2013             2012         Favorable / (Unfavorable)
                      ($ in millions, except per share data)
  System-wide
  Comparable Sales    (1.4      %)      4.6     %
  Growth^1
  System-wide Sales   1.1       %       6.5     %
  Growth^1
                                                                     
  Net Restaurant      4                 22           (18       )     (81.8  %)
  Growth
                                                                     
  Total Revenues      $327.7            $569.9       ($242.2   )     (42.5  %)
  Adjusted EBITDA^2   $144.3            $143.2       $1.1            0.8    %
  Adjusted EBITDA     44.0      %       25.1    %    nm              18.9   %
  Margin^2
  Adjusted Net        $60.1             $39.8        $20.3           51.0   %
  Income^2
  Adjusted Diluted
  Earnings Per        $0.17             $0.11        $0.06           48.8   %
  Share^2
  Net Income          $35.8             $14.3        $21.5           150.3  %
  Diluted Earnings    $0.10             $0.04        $0.06           146.6  %
  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.

NM - not meaningful

Key Performance Indicators:

                                 Three Months Ended March 31,
                                   2013            2012
  System Comparable Sales Growth
  U.S. & Canada                    (3.0     %)      4.2     %
  EMEA                             0.8      %       6.6     %
  LAC                              (1.3     %)      9.9     %
  APAC                             2.7      %       (2.8    %)
  Total                            (1.4     %)      4.6     %
                                                    
  System Net Restaurant Growth
  U.S. & Canada                    (28      )       (12     )
  EMEA                             18               34
  LAC                              8                6
  APAC                             6               (6      )
  Total                            4               22      
                                                    
  System Ending Restaurant Count
  U.S. & Canada                    7,448            7,488
  EMEA                             3,139            2,916
  LAC                              1,398            1,228
  APAC                             1,016           902     
  Total                            13,001          12,534  
                                                    

Comparable sales growth fell 1.4% in the quarter, due to the impact of leap
day and negative comparable sales growth in the U.S. and Canada and Latin
America and the Caribbean (“LAC”), partially offset by positive growth in
Europe, the Middle East and Africa (“EMEA”) and Asia Pacific (“APAC”).
System-wide sales growth of 1.1%, excluding the impact of FX, in the first
quarter was primarily attributable to comparable sales growth in EMEA and APAC
and net restaurant growth during the trailing twelve months.

In the first quarter, organic revenues fell 2.1%, excluding the impact of
refranchising and FX headwinds. On a reported basis, total revenues decreased
42.5% to $327.7 million, compared to $569.9 million in the prior year period
due to global refranchising transactions and negative comparable sales growth,
partially offset by net restaurant growth and favorable FX impact.

Organic Adjusted EBITDA grew 4.5%, excluding the impact of refranchising and
FX headwinds. On a reported basis, Adjusted EBITDA increased 0.8% to $144.3
million, compared to $143.2 million in the prior year period. Organic growth
was driven by net restaurant growth as well as G&A cost control. On a reported
basis, growth was lower due to significant progress on our global
refranchising initiative and FX headwinds.

Adjusted Net Income and Adjusted Diluted EPS increased 51% and 49%,
respectively, compared to the prior year period, primarily due to an increase
in Adjusted EBITDA, lower Depreciation and Amortization and lower interest
expense.

Operational and Segment Highlights

U.S. and Canada comparable sales growth of negative 3.0% in the first quarter
was due to the comparison to a strong first quarter in 2012, a challenging
macroeconomic environment and heightened competitive activity. After negative
comparable sales growth early in the quarter, comparable sales growth in the
U.S. and Canada was positive in March, as we took a more balanced approach to
value and premium offerings. Value-oriented promotions such as our $1.29
WHOPPER JR® and “2 for $5” specials were successful when paired with our
premium limited time offers such as the Chipotle WHOPPER® and Chipotle Chicken
sandwiches. Additionally, we launched a Turkey Burger for the first time in
the brand’s history, which was one of the best performing limited-time offers
during the first quarter.

EMEA delivered comparable sales growth of 0.8% in the first quarter, driven by
continued success of “King of the Day” promotions in the United Kingdom,
strong performance in the company’s expanding Russian market, and the popular
Steakhouse Gold premium burgers balanced with the “Trial Weeks” value
promotion in Germany. Although Spain was negative, trends improved
sequentially driven by successful value products such as Euroking and KING
AHORRO® deals.

LAC comparable sales fell 1.3%, due to weaker performance in Mexico and Puerto
Rico, partially offset by positive results in Brazil, Argentina, and
Venezuela. The Mexico and Puerto Rico markets were challenging, but new
products such as smoothies in Puerto Rico helped offset some weakness in
sales. Additionally, new value promotions in Puerto Rico helped drive
comparable sales growth in that market during April. In Brazil, we re-launched
the WHOPPER® Furioso platform and broadened national marketing reach, helping
grow comparable sales.

APAC comparable sales increased by 2.7%, driven by positive results in
Australia and Korea but partially offset by weakness in Japan and New Zealand.
Strength in Australia was driven by successful value promotions such as “Shake
and Win” and “Penny Pinchers”, and positive comparable sales growth in Korea
was due to compelling new value programs.

As part of BKW’s global refranchising strategy, the company refranchised 33
company-owned restaurants during the quarter in the U.S. and Canada segment.
In connection with this quarter’s refranchising transactions, BKW received
cash proceeds of $9.3 million, development commitments and re-imaging
commitments. After closing refranchising transactions in Mexico and Canada
during April, we successfully completed our refranchising program in the U.S.
and Canada, LAC, and APAC, and currently only 132 company-owned restaurants
remain to be refranchised in Germany and Spain. We expect to finish our
refranchising initiative by the end of 2013.

Cash and Liquidity

At quarter end, total debt was $3.0 billion and net debt was $2.4 billion. Due
to the improvement in net debt and in trailing twelve month Adjusted EBITDA,
the net debt to Adjusted EBITDA ratio improved to 3.7x at March 31, 2013 from
3.8x at December 31, 2012.

On April 10, 2013 the company’s Board of Directors declared a cash dividend of
$0.06 per share, a 20% increase from the previous dividend of $0.05 per share
declared on February 14, 2013. The dividend is payable on May 15, 2013 to
shareholders of record at the close of business on May 1, 2013. Future
dividends will be determined at the discretion of the Board of Directors.

In an effort to have a balanced approach to capital allocation and to return
cash to shareholders, the Board authorized the repurchase of up to $200
million of the company’s common stock. The share repurchases will be made in
the open market from time to time prior to May 31, 2016, and will be funded
from available cash.

Investor Conference Call

The company will host an investor conference call and webcast at 8:30 a.m.
Eastern Time, Friday, April 26, 2013, to review financial results for the
quarter ended March 31, 2013. 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 for 15 days following the call. The dial-in number is
(877) 317-6776 for U.S. callers and (412) 317-6776 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 13,000 locations serving more than 11 million
guests daily in 88 countries and territories worldwide. Approximately 97
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 positive outlook for the
long-term prospects of the business and its ability to return cash to its
shareholders; its expectations and belief regarding its ability to execute on
its Four Pillar strategy in the U.S. and Canada and to drive net restaurant
growth internationally and its expectations and belief regarding its ability
to complete its refranchising initiative by the end of 2013. 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
                                    March 31,            Increase / (Decrease)
                                    2013       2012      $            %
                                    (In millions, except per share data)
Revenues:
Company restaurant revenues         $  121.1   $ 396.2   $ (275.1 )   (69.4)%
Franchise and property revenues       206.6    173.7    32.9      18.9%
Total revenues                         327.7     569.9     (242.2 )   (42.5)%
Company restaurant expenses:
Food, paper and product costs          38.5      130.0     (91.5  )   (70.4)%
Payroll and employee benefits          37.5      119.5     (82.0  )   (68.6)%
Occupancy and other operating         32.1     104.5    (72.4  )   (69.3)%
costs
Total Company restaurant expenses      108.1     354.0     (245.9 )   (69.5)%
Franchise and property expenses        36.3      23.8      12.5       52.5%
Selling, general and                   66.7      95.0      (28.3  )   (29.8)%
administrative expenses
Other operating expense, net          14.2     13.0     1.2       9.2%
Total operating costs and             225.3    485.8    (260.5 )   (53.6)%
expenses
Income from operations                 102.4     84.1      18.3       21.8%
Interest expense, net                  49.1      59.1      (10.0  )   (16.9)%
Loss on early extinguishment of       -        3.5      (3.5   )   (100.0)%
debt
Income before income taxes             53.3      21.5      31.8       147.9%
Income tax expense                    17.5     7.2      10.3      143.1%
Net income                          $  35.8    $ 14.3    $ 21.5      150.3%
                                                                      
Earnings per share:
Basic                               $  0.10    $ 0.04    $ 0.06      149.8%
Diluted                             $  0.10    $ 0.04    $ 0.06      146.6%
Weighted average shares
outstanding
Basic                                 350.5    349.8    0.7       0.2%
Diluted                               357.1    351.9    5.3       1.5%
                                                                      

                                                               
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(In millions)
                                                    As of
                                                    March 31,     December 31,
                                                    2013          2012
ASSETS
Current assets:
Cash and cash equivalents                           $ 598.8       $  546.7
Trade and notes receivable, net                       173.4          179.0
Prepaids and other current assets, net                115.3          91.3
Deferred income taxes, net                           70.9         73.5    
Total current assets                                  958.4          890.5
                                                                  
Property and equipment, net of accumulated
depreciation of                                       856.5          885.2
$191.8 million and $200.8 million, respectively
Intangible assets, net                                2,773.2        2,811.2
Goodwill                                              613.2          619.2
Net investment in property leased to franchisees      176.3          180.4
Other assets, net                                    194.7        177.5   
Total assets                                        $ 5,572.3    $  5,564.0 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and drafts payable                         $ 50.4        $  68.7
Accrued advertising                                   87.5           66.5
Other accrued liabilities                             207.4          206.8
Current portion of long term debt and capital        62.2         55.8    
leases
Total current liabilities                             407.5          397.8
                                                                  
Term debt, net of current portion                     2,900.0        2,905.1
Capital leases, net of current portion                84.4           88.4
Other liabilities, net                                353.8          382.4
Deferred income taxes, net                           633.4        615.3   
Total liabilities                                    4,379.1      4,389.0 
                                                                  
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; 350,769,811 shares issued and
outstanding at                                        3.5            3.5
March 31, 2013; 350,238,771 shares issued and
outstanding
at December 31, 2012
Additional paid-in capital                            1,212.4        1,205.7
Retained earnings                                     94.4           76.1
Accumulated other comprehensive loss                 (117.1  )     (110.3  )
Total stockholders' equity                           1,193.2      1,175.0 
Total liabilities and stockholders' equity          $ 5,572.3    $  5,564.0 
                                                                  

                                                                  
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)
                                                         Three Months Ended
                                                         March 31,
                                                         2013        2012
                                                                     
                                                                     
Cash flows from operating activities:
Net income                                               $ 35.8      $ 14.3
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                              16.6        34.0
Loss on early extinguishment of debt                       -           3.5
Amortization of deferred financing costs and debt          13.5        15.3
issuance discount
Equity in net loss from unconsolidated affiliates          5.2         1.2
(Gain) loss on remeasurement of foreign denominated        2.4         (0.3  )
transactions
Amortization of defined benefit pension and                (0.2  )     (0.4  )
postretirement items
Realized loss on terminated caps/swaps                     1.3         0.6
Net loss on refranchisings and dispositions of assets      3.1         8.9
Bad debt expense, net of recoveries                        1.0         1.3
Share-based compensation                                   2.0         7.3
Deferred income taxes                                      7.4         (6.6  )
Changes in current assets and liabilities, excluding
dispositions:
Trade and notes receivable                                 2.3         3.4
Prepaids and other current assets                          (1.6  )     (9.2  )
Accounts and drafts payable                                (17.0 )     (9.7  )
Accrued advertising                                        13.3        (6.2  )
Other accrued liabilities                                  3.0         (5.4  )
Other long-term assets and liabilities                    (9.2  )    1.1   
Net cash provided by operating activities                 78.9      53.1  
Cash flows from investing activities:
Payments for property and equipment                        (7.3  )     (16.6 )
Proceeds from refranchisings, disposition of asset and     10.1        7.4
restaurant closures
Return of investment on direct financing leases            3.5         3.1
Other investing activities                                -         0.3   
Net cash provided by (used for) investing activities      6.3       (5.8  )
Cash flows from financing activities:
Repayments of term debt and capital leases                 (13.2 )     (11.5 )
Extinguishment of debt                                     -           (58.0 )
Proceeds from stock option exercises                       1.2         -
Dividends paid on common stock                            (17.5 )    -     
Net cash used for financing activities                    (29.5 )    (69.5 )
Effect of exchange rates on cash and cash equivalents      (3.6  )     (6.2  )
Increase (decrease) in cash and cash equivalents           52.1        (28.4 )
Cash and cash equivalents at beginning of period          546.7     459.0 
Cash and cash equivalents at end of period               $ 598.8    $ 430.6 
                                                                             

                 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.
Net refranchisings refer to sales of company-owned restaurants to franchisees,
net of acquisitions of franchise restaurants by us.

                                                    
Consolidated BKW
                                                       
                                      Three Months Ended March 31,
Key Business Metrics                  2013             2012
                                                       
Systemwide sales growth                  1.1      %      6.5     %
Franchise sales                       $  3,670.5       $ 3,348.5
Comparable sales growth
Company                                  (2.0     )%     6.1     %
Franchise                                (1.4     )%     4.4     %
System                                   (1.4     )%     4.6     %
NRG
Company                                  (3       )      (5      )
Franchise                                7               27
System                                   4               22
Net Refranchisings                       33              5
Restaurant counts at period end
Company                                  382             1,285
Franchise                                12,619          11,249
System                                   13,001          12,534
CRM %                                    10.7     %      10.7    %
                                                       
FX Impact                             Favorable / (Unfavorable)
                                                       
Consolidated revenues                 $  0.6           $ (6.1    )
Consolidated CRM                         0.1             (0.5    )
Consolidated SG&A                        (0.1     )      0.9
Consolidated income from operations      -               (1.2    )
Consolidated net income (loss)           -               (1.0    )
Consolidated adjusted EBITDA             0.1             (1.6    )
                                                                 

                                                             
U.S. & Canada
                                    Three Months Ended
                                    March 31,
Key Business Metrics                2013           2012
                                    Favorable / (Unfavorable)
Systemwide sales growth               (2.8    )%     3.7     %
Franchise sales                     $ 2,025.9      $ 1,847.4
Comparable sales growth
Company                               (4.0    )%     6.0     %
Franchise                             (3.0    )%     4.0     %
System                                (3.0    )%     4.2     %
NRG
Company                               (1      )      (1      )
Franchise                             (27     )      (11     )
System                                (28     )      (12     )
Net Refranchisings                    33             4
Restaurant counts at period end
Company                               149            934
Franchise                             7,299          6,554
System                                7,448          7,488
                                                                 
                                                                 
                                    Three Months Ended           Variance
                                    March 31,
                                                                 Favorable/
                                    2013           2012
                                                                 (Unfavorable)
Company:
Company restaurant revenues         $ 47.5         $ 286.3       $  (238.8  )
CRM                                   4.1            33.8           (29.7   )
CRM %                                 8.6     %      11.8    %      (3.2    )%
Company restaurant expenses as a
% of Company restaurant revenue:
Food and paper                        33.0    %      33.1    %      0.1     %
Payroll and benefits                  30.8    %      31.1    %      0.3     %
Depreciation and amortization         5.0     %      5.6     %      0.6     %
Other occupancy and operating         22.6    %      18.4    %      (4.2    )%
                                                                 
Franchise:
Franchise and property revenues     $ 125.9        $ 100.3       $  25.6
Franchise and property expenses       27.8           16.5           (11.3   )
Segment SG&A                          11.9           26.1           14.2
Segment depreciation and              10.2           21.4           11.2
amortization
Segment income                        100.5          112.9          (12.4   )
Segment margin                        58.0    %      29.2    %      28.8    %
                                                                 
FX Impact                           Favorable / (Unfavorable)
                                                                 
Segment revenues                    $ (0.2    )    $ (0.5    )
Segment CRM                           -              -
Segment income                        -              (0.1    )
                                                                 

                                                             
EMEA
                                     Three Months Ended
                                     March 31,
Key Business Metrics                 2013            2012
                                     Favorable / (Unfavorable)
Systemwide sales growth                 7.2    %       10.6  %
Franchise sales                      $  951.3        $ 859.5
Comparable sales growth
Company                                 1.5    %       7.6   %
Franchise                               0.7    %       6.5   %
System                                  0.8    %       6.6   %
NRG
Company                                 -              (1    )
Franchise                               18             35
System                                  18             34
Net Refranchisings                      -              1
Restaurant counts at period end
Company                                 132            190
Franchise                               3,007          2,726
System                                  3,139          2,916
                                                                 
                                                                 
                                     Three Months Ended          Variance
                                     March 31,
                                                                 Favorable/
                                     2013            2012        (Unfavorable)
Company:
Company restaurant revenues          $  59.1         $ 77.6      $  (18.5  )
CRM                                     7.0            6.4          0.6
CRM %                                   11.8   %       8.2   %      3.6    %
Company restaurant expenses as a %
of Company restaurant revenue:
Food and paper                          29.7   %       30.7  %      1.0    %
Payroll and benefits                    34.7   %       32.2  %      (2.5   )%
Depreciation and amortization           1.6    %       3.6   %      2.0    %
Other occupancy and operating           22.2   %       25.3  %      3.1    %
                                                                 
Franchise:
Franchise and property revenues      $  52.4         $ 45.7      $  6.7
Franchise and property expenses         7.7            6.1          (1.6   )
Segment SG&A                            12.7           18.4         5.7
Segment depreciation and                3.3            5.2          1.9
amortization
Segment income                          42.3           32.8         9.5
Segment margin                          37.9   %       26.6  %      11.3   %
                                                                 
FX Impact                            Favorable / (Unfavorable)
                                                                 
Segment revenues                     $  0.5          $ (4.8  )
Segment CRM                             -              (0.3  )
Segment income                          0.1            (1.4  )
                                                                 

                                                             
LAC
                                     Three Months Ended
                                     March 31,
Key Business Metrics                 2013            2012
                                     Favorable / (Unfavorable)
Systemwide sales growth                 1.4    %       15.3  %
Franchise sales                      $  321.6        $ 315.8
Comparable sales growth
Company                                 (8.7   )%      3.1   %
Franchise                               (1.0   )%      10.3  %
System                                  (1.3   )%      9.9   %
NRG
Company                                 (2     )       -
Franchise                               10             6
System                                  8              6
Net Refranchisings                      -              -
Restaurant counts at period end
Company                                 98             97
Franchise                               1,300          1,131
System                                  1,398          1,228
                                                                 
                                                                 
                                     Three Months Ended          Variance
                                     March 31,
                                                                 Favorable/
                                     2013            2012        (Unfavorable)
Company:
Company restaurant revenues          $  13.9         $ 14.7      $   (0.8  )
CRM                                     2.0            2.2           (0.2  )
CRM %                                   14.4   %       15.0  %       (0.6  )%
Company restaurant expenses as a %
of Company restaurant revenue:
Food and paper                          36.1   %       38.1  %       2.0   %
Payroll and benefits                    15.4   %       12.9  %       (2.5  )%
Depreciation and amortization           3.6    %       10.2  %       6.6   %
Other occupancy and operating           30.5   %       23.8  %       (6.7  )%
                                                                 
Franchise:
Franchise and property revenues      $  15.7         $ 15.8      $   (0.1  )
Franchise and property expenses         0.3            0.2           (0.1  )
Segment SG&A                            2.8           3.5           0.7
Segment depreciation and                0.5            1.6           1.1
amortization
Segment income                          15.1           15.9          (0.8  )
Segment margin                          51.0   %       52.1  %       (1.1  )%
                                                                 
FX Impact                            Favorable / (Unfavorable)
                                                                 
Segment revenues                     $  0.3          $ (1.1  )
Segment CRM                             0.1            (0.2  )
Segment income                          -              (0.1  )
                                                                 

                                                             
APAC
                                     Three Months Ended
                                     March 31,
Key Business Metrics                 2013           2012
                                     Favorable / (Unfavorable)
Systemwide sales growth                 8.4    %      5.4   %
Franchise sales                      $  371.7       $ 325.8
System comparable sales growth          2.7    %      (2.8  )%
System NRG                              6             (6    )
Net Refranchisings                      -             -
Restaurant counts at period end
Company                                 3             64
Franchise                               1,013         838
System                                  1,016         902
                                                                 
                                     Three Months Ended          Variance
                                     March 31,
                                                                 Favorable/
                                     2013           2012         (Unfavorable)
Franchise:
Franchise and property revenues      $  12.6        $ 11.9       $   0.7
Franchise and property expenses         0.5           1.0            0.5
Segment SG&A                            2.2           5.0            2.8
Segment depreciation and                0.6           2.1            1.5
amortization
Segment income                          10.4          7.8            2.6
Segment margin                          78.8   %      26.4  %        52.4   %
                                                                 
FX Impact                            Favorable / (Unfavorable)
                                                                 
Segment revenues                     $  -           $ 0.3
Segment income                          -             -
                                                                 

                                                          
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

Supplemental Disclosure
                                                            
Other Operating Expenses, net                               Three Months Ended
                                                            March 31,
                                                            2013       2012
Net losses on disposal of assets, restaurant closures and   $  4.6      $ 9.8
refranchisings
Litigation settlements and reserves, net                       0.1        0.4
Foreign exchange net losses                                    3.3        0.6
Equity in net loss from unconsolidated affiliates              5.2        1.2
Other, net                                                    1.0       1.0
Other operating expenses, net                               $  14.2     $ 13.0
                                                                        
                                                                        
                                                                        
                                                                        
Selling, general and administrative expenses                Three Months Ended
                                                            March 31,
                                                            2013        2012
                                                                        
Selling expenses                                            $  3.7      $ 16.7
Management general and administrative expenses                 49.6       61.8
Share-based compensation                                       2.0        1.4
Depreciation and amortization                                  2.3        4.4
Global portfolio realignment project costs                     9.1        3.7
Business combination agreement expenses                       -         7.0
Total general and administrative expenses                     63.0      78.3
Selling, general and administrative expenses                $  66.7     $ 95.0
                                                                          

                 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 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 defined as net income excluding the impact of those
same items excluded from Adjusted EBITDA. Adjusted Diluted EPS is calculated
by dividing Adjusted Net Income by the number of diluted shares of the Company
during the reporting period. Adjusted net income and Adjusted Diluted EPS are
used by management to evaluate the core operating performance. 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 March 31, 2013 and 2012

(Unaudited)
                                                                                                                       
                                                                   Refran.       Adjusted     FX
                 Actual                    Q1 '13 vs. Q1 '12       Impact        Q1 '12       Impact      Organic Growth
  $ in           Q1 '13       Q1 '12       $             %         $             $            $           $            %
  millions
  Calculation:                A            B                       C             A+C=D        E           B-C-E=F      F/D
  Revenue
  North          $ 173.4      $ 386.6        ($213.2 )   (55.1%)     ($202.4 )   $ 184.2        ($0.2 )     ($10.6 )   (5.8%)
  America
  EMEA           $ 111.5      $ 123.3        ($11.8  )   (9.6%)      ($17.0  )   $ 106.3      $ 0.5       $ 4.7        4.5%
  LAC            $ 29.6       $ 30.5         ($0.9   )   (3.0%)      -           $ 30.5       $ 0.3         ($1.2  )   (3.9%)
  APAC           $ 13.2      $ 29.5       ($16.3  )   (55.3%)    ($16.2  )   $ 13.3       -         ($0.1  )   (0.5%)
  Consolidated   $ 327.7      $ 569.9        ($242.2 )   (42.5%)     ($235.6 )   $ 334.3      $ 0.6         ($7.2  )   (2.1%)
                                                                                                                       
  Adjusted
  EBITDA
  North          $ 100.5      $ 112.9        ($12.4  )   (11.0%)     ($6.8   )   $ 106.1        -           ($5.6  )   (5.3%)
  America
  EMEA           $ 42.3       $ 32.8       $ 9.5         29.0%     $ 0.3         $ 33.1       $ 0.1       $ 9.1        27.5%
  LAC            $ 15.1       $ 15.9         ($0.8   )   (5.0%)      -           $ 15.9         -           ($0.8  )   (5.0%)
  APAC           $ 10.4       $ 7.8        $ 2.6         33.3%     $ 1.2         $ 9.0          -         $ 1.4        14.9%
  Unallocated
  Management      ($24.0 )    ($26.2 )   $ 2.2        (8.4%)     -           ($26.2 )    -        $ 2.2       (8.4%)
  G&A
  Consolidated   $ 144.3      $ 143.2      $ 1.1         0.8%        ($5.2   )   $ 138.0      $ 0.1       $ 6.2        4.5%
                                                                                                                       

                                             
Non-GAAP Financial Measures

Reconciliation of EBITDA and Adjusted EBITDA to Net Income
                                               
                                               Three Months Ended
                                               March 31,
EBITDA and adjusted EBITDA:                    2013       2012
                                               (In millions)
U.S. and Canada                                $ 100.5     $ 112.9
EMEA                                             42.3        32.8
LAC                                              15.1        15.9
APAC                                             10.4        7.8
Unallocated Management G&A                      (24.0 )    (26.2 )
Adjusted EBITDA                                  144.3       143.2
Share-based compensation ^(1)                    2.0         1.4
Global portfolio realignment project ^(2)        9.1         3.7
Business combination agreement expenses ^(3)     -           7.0
Other operating expenses, net                   14.2      13.0  
EBITDA                                           119.0       118.1
Depreciation and amortization                   16.6      34.0  
Income from operations                           102.4       84.1
Interest expense, net                            49.1        59.1
Loss on early extinguishment of debt             -           3.5
Income tax expense                              17.5      7.2   
Net income                                     $ 35.8     $ 14.3  
                                                           

                                                          
Non-GAAP Financial Measures

Reconciliation of Net Income to Adjusted Net Income
                                                                
                                          Three Months Ended
Adjusted net income                       March 31,             March 31,
                                          2013                  2012
                                          (In millions, except per share data)
                                                                
Net income                                $      35.8           $     14.3
Income tax expense                              17.5                7.2
Income before income taxes                       53.3                 21.5
Adjustments:
Franchise agreement amortization                 5.2                  5.2
Amortization of deferred financing
costs and                                        2.5                  3.5

original issue discount
Loss on early extinguishment of debt             -                    3.5
Other operating expense, net                     14.2                 13.0
Global portfolio realignment project             9.1                  3.7
costs ^(2)
Business combination agreement expenses         -                   7.0
^(3)
Total adjustments                                31.0                 35.9
                                                                
Adjusted income before income taxes             84.3                57.4
                                                                
Adjusted income tax expense ^(4)                24.2                17.6
                                                                
Adjusted net income                       $      60.1           $     39.8
                                                                
                                                                
Diluted - EPS (Adjusted Net Income)       $      0.17           $     0.11
Diluted Weighted Average Shares                 357.1               351.9
                                                                

                                                             
Non-GAAP Financial Measures

Reconciliation of Adjusted Net Income and Net Income, Net Debt / TTM Adj.
EBITDA
                                                                 
                                                  As of
Net debt to adjusted EBITDA                       March 31,      December 31,
                                                  2013           2012
                                                  (In millions, except ratios)
                                                                 
Long term debt, net of current portion            $  2,900.0     $    2,905.1
Capital leases, net of current portion               84.4             88.4
Current portion of long term debt and capital       62.2            55.8
leases
Total Debt                                           3,046.6          3,049.3
                                                                 
Cash and cash equivalents                            598.8            546.7
Net debt                                             2,447.8          2,502.6
TTM adjusted EBITDA                                  653.2            652.1
                                                                
Net debt / TTM adjusted EBITDA                    3.7x           3.8x
                                                                 

                                                           
Non-GAAP Financial Measures

Reconciliation of Net Income to TTM Adjusted EBITDA
                                                              
                                                  Twelve Months Ended
EBITDA and adjusted EBITDA                        March 31,   December 31,
                                                  2013        2012
                                                  (In millions)
                                                              
Net income                                        $  139.2    $    117.7
Interest expense, net                                213.8         223.8
Loss on early extinguishment of debt                 30.7          34.2
Income tax expense                                   52.3          42.0
Depreciation and amortization                       96.3         113.7
EBITDA                                               532.3         531.4
Adjustments:
Share-based compensation and non-cash
                                                     10.8          10.2
incentive compensation expense ^(1)
Other operating expense, net                         54.5          53.3
Global portfolio realignment project costs ^(2)      35.6          30.2
Business combination agreement expenses ^(3)        20.0         27.0
Total adjustments                                   120.9        120.7
                                                              
Adjusted EBITDA                                   $  653.2    $    652.1
                                                                   

                         Non-GAAP Financial Measures

                      Footnotes to Reconciliation Tables

(1) Represents share-based compensation expense associated with employee stock
options, and for the three months ended March 31, 2013 and March 31, 2012,
also includes the portion of annual non-cash incentive compensation that
eligible employees elected to receive as common equity in lieu of their 2012
and 2011 cash bonus, respectively.

(2) 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.

(3) Represents share-based compensation expense related to awards granted
during the three months ended March 31, 2013 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.

(4) Adjusted income tax expense for the three months ended March 31, 2013 and
2012 is calculated using the Company’s statutory tax rate in the jurisdiction
in which the costs were incurred.

Contact:

Burger King Worldwide, Inc.
Investors
Rahul Ketkar, 305-378-7696
Investor Relations
investor@whopper.com
or
Media
Bryson Thornton, 305-378-7277
Global Communications
mediainquiries@whopper.com
 
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