Exhibit 99.2
We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). Within these investor presentation materials, we make reference to a non-GAAP financial measure: adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA). This non-GAAP financial measure was calculated by excluding the impact of certain items to improve comparability between periods. We believe that this measure represents a useful internal measure of performance. Accordingly, where this non-GAAP measure is provided, it is done so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in assessing our underlying performance and valuation on a quarter-over-quarter and year-over-year basis. However, because this measure is not determined in accordance with GAAP, it is susceptible to varying calculations and not all companies calculate the measure in the same manner. As a result, the aforementioned measure may not be directly comparable to similarly titled measures presented by other companies. This non-GAAP financial measure is presented as supplemental information, and not as an alternative, to any GAAP measurements.
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA |
(Amounts in thousands) |
Fiscal Year | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||||||
GAAP Net income (loss) | $ | 30,137 | $ | 41,680 | $ | 42,206 | $ | (25,294 | ) | $ | 42,275 | $ | 38,621 | |||||||||||
Adjustments: | ||||||||||||||||||||||||
Interest expense, net | 821 | 1,739 | 2,197 | 4,681 | 3,478 | 1,507 | ||||||||||||||||||
Income tax expense (benefit) | 15,669 | 8,247 | 8,173 | (7,910 | ) | 4,063 | 7,010 | |||||||||||||||||
Depreciation and amortization expenses | 14,995 | 18,538 | 21,354 | 21,964 | 20,487 | 22,103 | ||||||||||||||||||
Earnings (loss) before interest, taxes, depreciation and amortization | $ | 61,622 | $ | 70,204 | $ | 73,930 | $ | (6,559 | ) | $ | 70,303 | $ | 69,241 | |||||||||||
Employee retention credit | - | - | - | (2,525 | ) | (381 | ) | - | ||||||||||||||||
Accelerated stock compensation and severance payments | - | - | - | 1,824 | 445 | - | ||||||||||||||||||
Loss on legal settlement | - | - | - | - | - | 6,000 | ||||||||||||||||||
Franchisee acquisition costs | 619 | 1,525 | 536 | - | - | - | ||||||||||||||||||
Loss (gain) on lease modifications | - | - | - | (206 | ) | 1,058 | 90 | |||||||||||||||||
Loss on impairment and restaurant closure costs | 3,904 | - | 374 | 16,548 | 1,854 | 574 | ||||||||||||||||||
Loss (income) on discontinued operations, net of tax | 108 | (80 | ) | - | - | - | - | |||||||||||||||||
Share based compensation expense | 6,763 | 7,647 | 8,157 | 8,261 | 4,888 | 7,872 | ||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 73,016 | $ | 79,296 | $ | 82,997 | $ | 17,343 | $ | 78,167 | $ | 83,777 |