Exhibit 99.3
DEL TACO HOLDINGS, INC.
UNAUDITED QUARTERLY FINANCIAL INFORMATION
FY2014
Del Taco Holdings, Inc.
Consolidated Statements of Comprehensive Loss
(In thousands)
12 Weeks Ended March 25, 2014 (Unaudited) | 12 Weeks Ended June 17, 2014 (Unaudited) | 12 Weeks Ended September 9, 2014 (Unaudited) | 16 Weeks Ended December 30, 2014 (Unaudited) | 52 Weeks Ended December 30, 2014 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Company restaurant sales | $ | 83,415 | $ | 87,714 | $ | 88,819 | $ | 120,852 | $ | 380,800 | ||||||||||
Franchise revenues | 2,768 | 3,015 | 3,034 | 4,156 | 12,973 | |||||||||||||||
Franchise sublease income | 487 | 515 | 540 | 709 | 2,251 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total revenue | 86,670 | 91,244 | 92,393 | 125,717 | 396,024 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Restaurant operating expenses: | ||||||||||||||||||||
Food and paper costs | 24,739 | 25,889 | 25,543 | 34,537 | 110,708 | |||||||||||||||
Labor and related expenses | 25,805 | 26,867 | 27,393 | 36,855 | 116,920 | |||||||||||||||
Occupancy and other operating expenses | 18,544 | 18,886 | 19,722 | 24,869 | 82,021 | |||||||||||||||
General and administrative | 6,049 | 6,280 | 5,975 | 9,832 | 28,136 | |||||||||||||||
Depreciation and amortization | 4,588 | 4,327 | 4,385 | 5,452 | 18,752 | |||||||||||||||
Occupancy and other – franchise subleases | 465 | 489 | 516 | 675 | 2,145 | |||||||||||||||
Pre-opening costs | 105 | 85 | 181 | 91 | 462 | |||||||||||||||
Impairment of long-lived assets | — | — | — | 9,617 | 9,617 | |||||||||||||||
Restaurant closure charges, net | 28 | (219 | ) | 20 | 253 | 82 | ||||||||||||||
(Gain) loss on disposal of assets | (199 | ) | (6 | ) | (24 | ) | 78 | (151 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total operating expenses | 80,124 | 82,598 | 83,711 | 122,259 | 368,692 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | 6,546 | 8,646 | 8,682 | 3,458 | 27,332 | |||||||||||||||
Interest expense | 7,993 | 7,189 | 6,786 | 8,927 | 30,895 | |||||||||||||||
Transaction-related costs | — | — | 241 | 1,695 | 1,936 | |||||||||||||||
Debt modification costs | — | 1,241 | — | — | 1,241 | |||||||||||||||
Change in fair value of warrant liability | — | — | 303 | 1,114 | 1,417 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total other expense | 7,993 | 8,430 | 7,330 | 11,736 | 35,489 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(Loss) income from operations before provision for income taxes | (1,447 | ) | 216 | 1,352 | (8,278 | ) | (8,157 | ) | ||||||||||||
Provision (benefit) for income taxes | 440 | 356 | 463 | (161 | ) | 1,098 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (loss) income | (1,887 | ) | (140 | ) | 889 | (8,117 | ) | (9,255 | ) | |||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Change in fair value of interest rate cap | (28 | ) | (61 | ) | (14 | ) | (22 | ) | (125 | ) | ||||||||||
Reclassification of interest rate cap amortization included in net (loss) income | — | 2 | 5 | 12 | 19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total other comprehensive loss, net | (28 | ) | (59 | ) | (9 | ) | (10 | ) | (106 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Comprehensive (loss) income | $ | (1,915 | ) | $ | (199 | ) | $ | 880 | $ | (8,127 | ) | $ | (9,361 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
1
Del Taco Holdings, Inc.
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA(1)
(Unaudited)
(In thousands)
12 Weeks Ended March 25, 2014 | 12 Weeks Ended June 17, 2014 | 12 Weeks Ended September 9, 2014 | 16 Weeks Ended December 30, 2014 | 52 Weeks Ended December 30, 2014 | ||||||||||||||||
Net income (loss) | $ | (1,887 | ) | $ | (140 | ) | $ | 889 | $ | (8,117 | ) | $ | (9,255 | ) | ||||||
Non-GAAP adjustments | ||||||||||||||||||||
Provision for income taxes | 440 | 356 | 463 | (161 | ) | 1,098 | ||||||||||||||
Interest expense, net | 7,993 | 7,189 | 6,786 | 8,927 | 30,895 | |||||||||||||||
Depreciation and amortization | 4,588 | 4,327 | 4,385 | 5,452 | 18,752 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
EBITDA | 11,134 | 11,732 | 12,523 | 6,101 | 41,490 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Stock based compensation expense | 287 | 235 | 189 | 243 | 954 | |||||||||||||||
(Gain) loss on disposal of assets | (199 | ) | (6 | ) | (24 | ) | 78 | (151 | ) | |||||||||||
Impairment of long-lived assets | — | — | — | 9,617 | 9,617 | |||||||||||||||
Restaurant closure charges, net | 28 | (219 | ) | 20 | 253 | 82 | ||||||||||||||
Debt modification costs | — | 1,241 | — | — | 1,241 | |||||||||||||||
Transaction-related costs | — | — | 241 | 1,695 | 1,936 | |||||||||||||||
Changes in fair value of warrant liability | — | — | 303 | 1,114 | 1,417 | |||||||||||||||
Pre-opening costs | 105 | 85 | 181 | 91 | 462 | |||||||||||||||
Insurance reserves adjustment | 362 | 539 | 510 | 389 | 1,800 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted EBITDA | $ | 11,717 | $ | 13,607 | $ | 13,943 | $ | 19,581 | $ | 58,848 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Adjusted EBITDA is defined as net income/loss prior to interest expense, income taxes, and depreciation and amortization, as adjusted to add back certain charges, such as stock-based compensation expense and transaction-related costs, as these expenses are not considered an indicator of ongoing company performance.Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to operating income or net income/loss as a measure of operating performance or cash flows or as measures of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to GAAP results.Adjusted EBITDA is a financial measure that was not calculated in accordance with GAAP. |
2
Del Taco Holdings, Inc.
Restaurant Contribution(1)
(Unaudited)
(In thousands)
12 Weeks Ended March 25, 2014 | 12 Weeks Ended June 17, 2014 | 12 Weeks Ended September 9, 2014 | 16 Weeks Ended December 30, 2014 | 52 Weeks Ended December 30, 2014 | ||||||||||||||||
Company restaurant sales | $ | 83,415 | $ | 87,714 | $ | 88,819 | $ | 120,852 | $ | 380,800 | ||||||||||
Restaurant operating expenses | 69,088 | 71,642 | 72,658 | 96,261 | 309,649 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Restaurant contribution | $ | 14,327 | $ | 16,072 | $ | 16,161 | $ | 24,591 | $ | 71,151 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Restaurant contribution is defined as company restaurant sales less restaurant operating expenses, which are food and paper costs, labor and related expenses and occupancy and other operating expenses.Restaurant contribution margin is defined as restaurant contribution as a percentage of company restaurant sales.Restaurant contribution and restaurant contribution margin are neither required by, nor presented in accordance with, GAAP. |
3