The Wendy's Company Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2013; Reiterates Earnings Guidance for the Fiscal 2013 and Provides Earnings Guidance for the Fourth Quarter of 2013; Plans to Open New Restaurants in 2013; Expects to Close Restaurant in 2013
May 8 13
The Wendy's Company reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenues of $603,682,000 compared to $593,187,000 a year ago. Operating profit was $22,464,000 compared $20,916,000 a year ago. Loss income before income taxes and non controlling interests was $771,000 compared to income before income taxes and non controlling interests of $21,612,000 year ago. Net income attributable to company was $2,133,000 or $0.01 per basic and diluted share compared to $12,350,000 or $0.03 per basic and diluted share a year ago. Adjusted EBITDA was $77,299,000 compared $63,881,000 a year ago. Adjusted income was $13,101,000 or $0.03 per share compared to $3,347,000 or $0.01 per share a year ago. Capital expenditures of approximately $245 million, compared to $198 million in 2012. This estimate includes $145 million for Image Activation designs at 25 new and 100 reimaged company-operated restaurants in North America. Adjusted EPS increased from $0.01 in 2012 to $0.03 for the first quarter of 2013. During the first quarter, it generated net cash flow from operations of $32.6 million.
The company expects lower year-over-year profitability in the fourth quarter due primarily to the anticipated expense of about $10 million from the company's Image Activation franchisee incentive program. This quarterly earnings pattern is reflected in its 2013 adjusted EBITDA guidance of $350 million to $360 million. The company expected the first quarter adjusted EBITDA to have the highest year-over-year growth rate with lower growth rates in the second and third quarter of 2013.
For year 2013, the company reiterated its outlook for Adjusted EBITDA of $350 million to $360 million, a 5% to 8% increase compared to 2012. The outlook for 2013 adjusted EBITDA reflects: higher year-over-year profitability in each of the first three quarters, with lower growth rates in the second and third quarter of 2013, relative to the first quarter. Lower year-over-year profitability in the fourth quarter, due primarily to the anticipated expense of about $10 million from the company's Image activation franchisee incentive program. As a result of the expected benefit from the 2013 debt refinancing, the company increased its outlook for 2013 adjusted earnings per share from a range of $0.18 to $0.20 to a range of $0.20 to $0.22. The new adjusted earnings per share range represent an 18% to 29% increase compared to 2012. Estimated 2013 adjusted earnings per share exclude $20 to $25 million of anticipated pretax depreciation for existing assets that will be replaced as part of the company's Image Activation initiative. The company expects its total 2013 depreciation and amortization expense to increase 15% to 20% compared to 2012. Average same-store sales growth of 2.0% to 3.0% at company’s North America company-operated restaurants. The company continues to target long-term Adjusted EBITDA and adjusted earnings per share growth beyond 2013 in the high single-digit to low double-digit range.
For the year 2013, the company expects to open new restaurant related to North America 25, North America franchise 40, international 60 and the reimaging of 100 company-operated restaurants.
For the year 2013, the company expects to close restaurants related to North America 20 to 30, North America franchise 90 to 100 and international 15 to 20.
The Wendy's Company Announces Management Changes, Effective from September 1, 2013
May 6 13
The Wendy's Company announced that Todd Penegor, most recently President of the Kellogg Company's U.S. Snacks Division, will join Wendy's in June. Following a transition period, Penegor will succeed Steve Hare as Senior Vice President and Chief Financial Officer on September 1 and Hare will retire from the Company.
The Wendy's Company Announces Regular Quarterly Cash Dividend, Payable on June 17, 2013
May 2 13
The Wendy's Company announced the declaration of its regular quarterly cash dividend of $0.04 per share, payable on June 17, 2013 to stockholders of record as of June 3, 2013.