Carrols Restaurant Group announced financial results for the fourth quarter and full year ended January 3, 2016. Q4 restaurant sales increased 18.7% to $229.1 million from $192.9 million.
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This is including $46.7 million in sales from Burger King restaurants acquired in 2014 and 2015. The company has acquired a total of 178 Burger King restaurants over the past two years including 55 restaurants in 2015 (46 in the fourth quarter) and 123 restaurants in 2014.
Comparable restaurant sales increased 5.1% (on a comparable 14 week basis) compared to a 3.6% increase in the prior year period. Adjusted EBITDA more than doubled to $23.7 million from $10.1 million in the prior year period.
Carrols Restaurant net income was $7.0 million, or $0.16 per diluted share, compared to a net loss of $27.0 million, or $0.78 per diluted share, in the prior year period. The net loss in the fourth quarter of 2014 included a non-cash charge of $24.3 million for a valuation allowance against the Company's net deferred income tax assets. As a result, there was no income tax expense in 2015.
Adjusted net income was $8.2 million, or $0.18 per diluted share, compared to a net loss of $0.9 million, or $0.03 per diluted share, in the prior year period.
Full year 2015
Carrols Restaurant restaurant sales increased 24.0% to $859.0 million from $692.8 million, including $157.6 million in sales from BURGER KING® restaurants acquired in 2014 and 2015.
Comparable restaurant sales increased 7.4% (on a comparable 53 week basis) compared to a 0.6% increase in the prior year. Adjusted EBITDA increased $40.7 million to $76.7 million from $36.0 million in the prior year.
Net income was $4,000, or $0.00 per diluted share, compared to a net loss of $38.1 million, or $1.23 per diluted share, in the prior year. Net income in 2015 included a charge of $12.6 million related to the refinancing of the Company's debt, and the net loss in 2014 included a $24.3 million non-cash charge for a valuation allowance against net deferred income tax assets.
Excluding those charges and certain other items, Adjusted net income was $16.9 million, or $0.38 per diluted share, compared to a net loss of $10.4 million, or $0.34 per diluted share, in the prior year. ■