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Actionable news in BLMN: Bloomin' Brands, Inc.,

Bloomin': Group Vice President, Ir & Finance

The following excerpt is from the company's SEC filing.

(813) 830-5311

Bloomin’ Brands Announces 2015

Quarter Adjusted Diluted EPS of

and Diluted EPS of

Reaffirms 2015 Guidance for Adjusted Diluted EPS of At Least $1.27;

Repurchases $60 Million of Common Stock in the Quarter;

Declares Quarterly Dividend of $0.06 a Share

TAMPA, Fla.,

November 3, 2015

- Bloomin’ Brands, Inc. (Nasdaq:BLMN) today reported results for the

quarter (“

Q3 2015

”) ended

September 27, 2015

compared to the

Q3 2014

September 28, 2014

Results for

include the fo llowing:

Comparable sales for Outback Steakhouse in Brazil and Korea increased

, respectively

Comparable sales for Company-owned U.S. concepts declined

The Company opened 10 new restaurants including

International restaurants

Adjusted restaurant margin was


and U.S. GAAP restaurant margin was

The Company repurchased approximately

2.9 million

shares of its common stock for

$60 million

in Q3 2015 for a total of approximately

7.0 million

shares for

$160 million


Adjusted Diluted EPS and Diluted EPS

The following table reconciles Adjusted diluted earnings per share to Diluted earnings per share for the periods as indicated below.



Diluted earnings (loss) per share


See Non-GAAP Measures later in this release.

CEO Comments

“Our third quarter results position us well to deliver on our EPS goals for the year. Our International business continues to deliver strong performance and our ongoing productivity efforts led to 70 basis points of restaurant margin expansion in the quarter,” said Elizabeth Smith, CEO. “We knew that our back half trends would be challenged given the high year ago base; however, our marketing programs did not break through as expected. We are preparing for 2016 with significant innovation driven platforms and new levers to drive comp sales.”

Quarter Financial Results

The following summarizes the Company’s results for

(dollars in millions)

% Change

Total revenues



Adjusted restaurant level operating margin

U.S. GAAP restaurant level operating margin

Adjusted operating income margin

U.S. GAAP operating income margin

The decrease in Total revenues was primarily due to the effect of foreign currency translation, partially offset by the net benefit of new restaurant openings and closings.

The increases in Adjusted restaurant-level operating margin and Adjusted operating income margin were primarily due to productivity savings and increased efficiencies in advertising expenses. These increases were partially offset by commodity and wage inflation.

The difference between Adjusted and U.S. GAAP restaurant-level operating margins in

was due to the favorable resolution of a payroll tax audit contingency.

The increase in U.S. GAAP operating income margin in

was primarily due to the lapping of costs related to our International Restaurant Closure Initiative and impairments related to the decision to sell our corporate aircraft and Roy’s.

Quarter Comparable Restaurant Sales



Comparable restaurant sales (stores open 18 months or more) (1) (2):

Carrabba’s Italian Grill

Bonefish Grill

Fleming’s Prime Steakhouse & Wine Bar

Combined U.S.

Outback Steakhouse - Brazil

Outback Steakhouse - South Korea

Comparable restaurant sales exclude the effect of fluctuations in foreign currency rates.

Relocated international restaurants closed more than 30 days and relocated U.S. restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.

U.S. Segment Operating Results

The increases in Adjusted and U.S. GAAP operating income margin were primarily due to lower headcount due to the Company’s organizational realignment in 2014. The increase in U.S. GAAP operating income margin was also due to lower impairments.

The difference between Adjusted and U.S. GAAP operating income margins in

was primarily due to restaurant relocations and remodel costs.

International Segment Operating Results

The decrease in Total revenues is primarily due to foreign currency translation, primarily in Brazil, and the impact of the International Restaurant Closure Initiative. This was partially offset by new restaurant openings and an increase in comparable sales in Brazil and South Korea.

The increase in Adjusted and U.S. GAAP restaurant-level operating margin was primarily due to higher average unit volumes and productivity savings partially offset by higher commodity and wage inflation.

The increase in Adjusted operating income margin was primarily due to higher average unit volumes.

The increase in U.S. GAAP operating income margin was driven by higher restaurant-level operating margin and the lapping of expenses related to our International Restaurant Closure Initiative.

Foreign currency translation negatively impacted adjusted income from operations by $4.4 million.

Unallocated Corporate Operating Expense

Certain expenses are managed centrally and are not allocated to the U.S. or International segment. In

, unallocated expenses at the restaurant operating level were $8.9 million lower than

primarily due to lower general liability expenses and the favorable resolution of a payroll tax audit.

System-wide Development

The following summarizes our system-wide development for the thirteen weeks as of



SEPTEMBER 27, 2015

Outback Steakhouse—Company-owned

Carrabba’s Italian Grill—Franchised

Bonefish Grill—Company-owned


Outback Steakhouse—South Korea

Outback Steakhouse—Brazil

System-wide development

Dividend Declaration and Share Repurchases

The Company’s Board of Directors declared a quarterly cash dividend of

per share to be paid on

November 25, 2015

to all stockholders of record as of the close of business on

November 13, 2015

On August 3, 2015, the Company’s Board of Directors approved a new

$100.0 million

share repurchase program. The authorization will expire on

February 3, 2017

. During

, the Company repurchased $60.0 million of outstanding stock under the program. As of September 27, 2015, $40.0 million remains authorized under the share repurchase program.

Fiscal 2015 Financial Outlook

The Company is reaffirming its full-year 2015 outlook on adjusted diluted earnings per share of at least $1.27.

The Company has revised guidance on the following items:

Blended U.S. comparable restaurant sales growth is expected to be 0.5% to 1.0% versus prior guidance of “approximately 1.5%”.

Total Revenues are expected to be approximately $4.37 billion versus prior guidance of approximately $4.43 billion.

All other elements of the guidance included in the August 4, 2015 release remain intact.

Selected Preliminary 2016 Financial Outlook

Below are the Company’s current expectations for the full-year 2016:

An increase in Adjusted EPS within the Company’s long-term target of 10% - 15% growth

Positive comparable U.S. restaurant sales

An increase in Adjusted operating margin

Commodity inflation is expected to be approximately 1%

Foreign exchange headwinds of approximately $12 million dollars, primarily attributable to the...