Business Wire | Jul 24, 2020 07:00AM EDT

Bloomin' Brands Provides Interim Business Update Related to COVID-19

Jul. 24, 2020

TAMPA, Fla.--(BUSINESS WIRE)--Jul. 24, 2020--Bloomin' Brands, Inc. (Nasdaq: BLMN) today announced a business update related to COVID-19 as well as second quarter 2020 financial results.

Statement from David Deno, Chief Executive Officer

Our priorities remain unchanged as we continue to address these challenging times. We are focused on taking care of our people and serving food in a safe environment that protects both our Team Members and customers.

The investments made over the past several years to enhance the customer experience and rapidly pursue the emerging delivery opportunity have been critical to our success in navigating this pandemic. At the onset of this pandemic in March, we were able to quickly pivot to an off-premises only business model as dining rooms were forced to close. The rapid growth we experienced in off-premises sales allowed us to keep substantially all of our locations open during this time.

Starting in May, states began the process of partially re-opening their economies. Our decision to not furlough any employees during this pandemic has allowed us to quickly prepare our restaurants to re-open dining rooms in a safe and efficient manner. As of July 19, 2020, 928 company-operated restaurants (approximately 92% of U.S. restaurants) have reopened with limited in-restaurant dining capacity. At Outback Steakhouse, we had 527 restaurants open for dine-in service at limited capacity during the full week ended July 19, 2020. Comparable restaurant sales at these locations were down 10.7% from the prior year. Across our U.S. portfolio, we experienced consistent weekly sales momentum throughout the second quarter as we adapted to this evolving environment. This improved sales recovery, coupled with disciplined cost management, enabled us to generate positive cash flow for the month of June.

Recently, there has been a significant increase in reported COVID cases in certain states, including Florida and Texas, where we have a total of 286 company-owned locations. This has resulted in some local governments responding by taking additional measures, including implementing a further reduction of in-restaurant capacity in certain locations. Although this is a developing situation, to this point these capacity reductions have had a minimal impact on our overall sales trends. We continue to monitor and adhere to local restrictions and are maintaining elevated safety measures, including additional sanitation and disinfecting practices, use of gloves and facial protection for our employees, as well as contactless payment options for our consumers.

Despite these recent developments and the challenging environment that remains, we are looking forward to emerging as a better, stronger, operations-focused company. I am more convinced than ever of the important role that full-service restaurants will continue to play in the lives of our customers and our communities.

Recent Sales Results

The following table includes U.S. company-owned comparable restaurant sales metrics for both restaurants open for in-restaurant dining and restaurants with off-premises only dining for the full weekly periods ended as indicated:

RESTAURANTS WITH RESTAURANTS WITH

OPEN IN-RESTAURANT DINING OFF-PREMISES DINING ONLY

WEEK ENDED WEEK ENDED

Comparablerestaurant JUNE JUNEsales 21, JUNE JULY 5, JULY JULY 21, JUNE JULY 5, JULY JULY(stores 2020 28, 2020 12, 19, 2020 28, 2020 12, 19,open 18 (1) 2020 2020 2020 (1) 2020 2020 2020months ormore):

Outback Steakhouse

Averagesales $70,007 $57,048 $54,741 $59,309 $60,095 $42,140 $39,361 $33,604 $39,316 $43,462volumes

Comparablerestaurant 6.8% (11.6)% (13.6)% (9.7)% (10.7)% (36.4)% (41.9)% (48.6)% (42.2)% (38.6)%sales

Number of 464 491 530 525 527 99 72 33 38 36Restaurants



Carrabba'sItalian Grill

Averagesales $53,049 $45,579 $39,975 $44,355 $44,704 $37,431 $33,073 $25,759 $30,315 $31,347volumes

Comparablerestaurant (0.7)% (16.5)% (17.3)% (15.0)% (16.5)% (32.4)% (38.5)% (40.2)% (33.5)% (33.0)%sales

Number of 180 183 193 191 191 19 16 6 8 8Restaurants



Bonefish Grill

Averagesales $48,132 $39,866 $35,442 $38,553 $39,358 $32,106 $34,354 $29,823 $28,101 $30,346volumes

Comparablerestaurant (14.6)% (31.8)% (29.4)% (28.9)% (32.4)% (49.4)% (47.0)% (48.0)% (51.2)% (51.9)%sales

Number of 155 156 167 162 162 26 25 14 19 19Restaurants



Fleming'sPrime Steakhouse& Wine Bar

Averagesales $80,957 $57,131 $42,193 $45,546 $46,944 $44,888 $32,101 $43,838 $43,377 $49,769volumes

Comparablerestaurant 14.9% (26.3)% (9.6)% (24.2)% (27.4)% (50.0)% (68.3)% (44.6)% (55.3)% (51.0)%sales

Number of 56 58 52 48 48 9 7 13 17 17Restaurants



Combined U.S.

Averagesales $63,189 $51,671 $47,602 $51,880 $52,627 $40,012 $37,056 $34,104 $36,681 $40,476volumes

Comparablerestaurant 2.5% (17.0)% (16.5)% (14.4)% (16.1)% (39.2)% (44.9)% (47.0)% (47.2)% (44.6)%sales

Number of 855 888 942 926 928 153 120 66 82 80Restaurants

_________________

(1) The week ended June 21, 2020 includes the benefit of Father's Day.

The following table includes estimated comparable restaurant sales by concept for our U.S. company-owned restaurants for the periods indicated:

WEEK ENDED

Comparable restaurant JUNE 21, JUNE 28, JULY 5, JULY 12, JULY 19,sales (stores open 18 2020 (1) 2020 2020 2020 2020months or more):

Outback Steakhouse (0.8) % (15.7) % (15.7) % (12.0) % (12.6) %

Carrabba's Italian Grill (3.9) % (18.3) % (17.9) % (15.7) % (17.1) %

Bonefish Grill (20.1) % (34.1) % (31.0) % (31.4) % (34.6) %

Fleming's Prime 3.8 % (32.0) % (20.0) % (35.5) % (35.8) %Steakhouse & Wine Bar

Combined U.S. (4.2) % (20.6) % (18.8) % (17.4) % (18.7) %

_________________

(1) The week ended June 21, 2020 includes the benefit of Father's Day.

Cash Utilization and Liquidity Update

As of yesterday, our total liquidity position was $502 million, which includes approximately $138 million of domestic cash and $364 million of capacity on our revolving credit facility. Our liquidity position over the last several weeks has improved due to increased sales performance and working capital inflows.

Second Quarter Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted (loss) earnings per share attributable to common stockholders to Adjusted diluted (loss) earnings per share for the second quarter 2020 ("Q2 2020") compared to the second quarter 2019 ("Q2 2019").

Q2

2020 2019 CHANGE

Diluted (loss) earnings per share attributable $ (1.05) $ 0.32 $ (1.37) to common stockholders

Adjustments 0.31 0.04 0.27

Adjusted diluted (loss) earnings per share $ (0.74) $ 0.36 $ (1.10)



______________

See Non-GAAP Measures later in this release.

Our second quarter results on a GAAP and adjusted basis included $11 million of relief pay (net of credits) provided to hourly employees impacted by the closure of our dining rooms.

Second Quarter Financial Results

(dollars in millions) Q2 2020 Q2 2019 CHANGE

Total revenues $ 578.5 $ 1,021.9 (43.4)%



GAAP restaurant-level operating margin 2.1 % 15.0 % (12.9)%

Adjusted restaurant-level operating margin 2.7 % 15.0 % (12.3)%(1)



GAAP operating (loss) income margin (19.3) % 4.3 % (23.6)%

Adjusted operating (loss) income margin (1) (13.7) % 4.6 % (18.3)%

___________________

(1) See Non-GAAP Measures later in this release.

* The decrease in total revenues was primarily due to: (i) significantly lower comparable restaurant sales principally attributable to the COVID-19 pandemic, (ii) the net impact of restaurant closures and openings, (iii) lower franchise revenue and (iv) the effect of foreign currency translation of the Brazil Real relative to the U.S. dollar.

* GAAP and Adjusted restaurant-level operating margin decreased due to: (i) significantly lower comparable restaurant sales and costs incurred in connection with the COVID-19 pandemic, including incremental delivery related costs and relief pay net of tax credits and (ii) higher labor costs and commodity inflation. These decreases are partially offset by: (i) reduced operating, advertising and utilities expense and (ii) cost savings from waste reduction initiatives.

* GAAP operating income margin decreased due to: (i) a decline in restaurant-level operating margin discussed above, (ii) sales deleveraging in connection with the COVID-19 pandemic across depreciation and amortization and general and administrative expense and (iii) asset impairment charges related to the COVID-19 pandemic. These decreases are partially offset by cost savings from our restructuring and transformation initiatives. Item (iii) from above was excluded from our adjusted operating income margin.

Second Quarter Comparable Restaurant Sales

THIRTEEN WEEKS ENDED JUNE 28, 2020 COMPANY-OWNED

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

U.S.

Outback Steakhouse (32.9)%

Carrabba's Italian Grill (36.7)%

Bonefish Grill (56.8)%

Fleming's Prime Steakhouse & Wine Bar (56.3)%

Combined U.S. (39.4)%

International

Outback Steakhouse - Brazil (1) (63.9)%

______________

(1) Brazil comparable restaurant sales are on a one-month lag and are presentedon a calendar basis. Represents results through May 31, 2020.

2020 Financial Outlook

As announced on March 20, 2020, the Company withdrew its 2020 financial guidance for the fiscal year ending December 27, 2020. Due to the current global market and economic conditions as a result of COVID-19, the Company will not provide guidance for the remainder of the year.

Conference Call

The Company will host a conference call today, July 24, 2020 at 8:30 AM EDT. The conference call will be webcast live from the Company's website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company's website after the call.

Non-GAAP Measures

In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include the following: (i) Adjusted restaurant-level operating margin, (ii) Adjusted (loss) income from operations and the corresponding margin, (iii) Adjusted net (loss) income, (iv) Adjusted diluted (loss) earnings per share, (v) Adjusted segment restaurant-level operating margin and (vi) Adjusted segment (loss) income from operations and the corresponding margin.

We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans.

These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should refer to the reconciliations of non-GAAP measures in tables four, five, and six included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period.

About Bloomin' Brands, Inc.

Bloomin' Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has four founder-inspired brands: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. The Company operates more than 1,450 restaurants in 47 states, Puerto Rico, Guam and 20 countries, some of which are franchise locations. For more information, please visit www.bloominbrands.com.

Forward-Looking Statements

Certain statements contained herein, including statements under the headings "Statement from David Deno, Chief Executive Officer" and "Cash Utilization and Liquidity Update" are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as "guidance," "believes," "estimates," "anticipates," "expects," "on track," "feels," "forecasts," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company's forward-looking statements. These risks and uncertainties include, but are not limited to: the effects of the COVID-19 pandemic and uncertainties about its depth and duration, as well as the impacts to economic conditions and consumer behavior, including, among others: the inability of workers, including delivery drivers, to work due to illness, quarantine, or government mandates, temporary restaurant closures and capacity restrictions due to reduced workforces or government mandates, the unemployment rate, the extent, availability and effectiveness of any COVID-19 stimulus packages or loan programs, the ability of our franchisees to operate their restaurants during the pandemic and pay royalties, and trends in consumer behavior and spending during and after the end of the pandemic; consumer reaction to public health and food safety issues; competition; increases in labor costs; government actions and policies; increases in unemployment rates and taxes; local, regional, national and international economic conditions; consumer confidence and spending patterns; price and availability of commodities; the effects of changes in tax laws; challenges associated with our remodeling, relocation and expansion plans; interruption or breach of our systems or loss of consumer or employee information; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; our ability to preserve the value of and grow our brands; the seasonality of the Company's business; weather, acts of God and other disasters; changes in patterns of consumer traffic, consumer tastes and dietary habits; the cost and availability of credit; interest rate changes; and compliance with debt covenants and the Company's ability to make debt payments and planned investments. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Note: Numerical figures included in this release have been subject to rounding adjustments.

TABLE ONE

BLOOMIN' BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(in thousands, JUNE 28,except per share 2020 JUNE 30, 2019 JUNE 28, 2020 JUNE 30, 2019data)

Revenues

Restaurant sales $ 576,261 $ 1,005,687 $ 1,572,498 $ 2,117,329

Franchise and 2,198 16,243 14,298 32,732 other revenues

Total revenues 578,459 1,021,930 1,586,796 2,150,061

Costs and expenses

Cost of sales 180,758 312,679 500,451 664,790

Labor and other 205,537 301,213 514,806 620,228 related

Other restaurant 177,846 240,895 424,401 491,749 operating

Depreciation and 45,784 49,788 94,052 99,270 amortization

General and 55,487 71,955 140,289 142,544 administrative

Provision forimpaired assets 24,959 1,940 66,277 5,526 and restaurantclosings

Total costs and 690,371 978,470 1,740,276 2,024,107 expenses

(Loss) income (111,912) 43,460 (153,480) 125,954 from operations

Loss onmodification of (237) - (237) - debt

Other income 581 12 (212) (156) (expense), net

Interest expense, (16,639) (12,448) (28,347) (23,629) net

(Loss) incomebefore (benefit) (128,207) 31,024 (182,276) 102,169 provision forincome taxes

(Benefit)provision for (35,779) 1,215 (55,434) 6,711 income taxes

Net (loss) income (92,428) 29,809 (126,842) 95,458

Less: net (loss)incomeattributable to (172) 788 25 2,137 noncontrollinginterests

Net (loss) incomeattributable to (92,256) $ 29,021 (126,867) 93,321 Bloomin' Brands

Redemption ofpreferred stock - - (3,496) - in excess ofcarrying value

Net (loss) incomeattributable to $ (92,256) $ 29,021 $ (130,363) $ 93,321 commonstockholders



(Loss) earningsper shareattributable to commonstockholders:

Basic $ (1.05) $ 0.32 $ (1.49) $ 1.03

Diluted $ (1.05) $ 0.32 $ (1.49) $ 1.02



Weighted averagecommon shares outstanding:

Basic 87,496 90,194 87,312 90,805

Diluted 87,496 90,953 87,312 91,807

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDEDthousands)

U.S. Segment JUNE 28, 2020 JUNE 30, JUNE 28, 2020 JUNE 30, 2019 2019

Revenues

Restaurant sales $ 536,767 $ 900,616 $ 1,421,656 $ 1,901,429

Franchise and 313 13,603 9,921 27,297 other revenues

Total revenues $ 537,080 $ 914,219 $ 1,431,577 $ 1,928,726

Restaurant-level 3.2 % 14.5 % 8.4 % 15.6 %operating margin

(Loss) income from $ (62,921) $ 78,814 $ (51,542) $ 191,849 operations

Operating (loss) (11.7) % 8.6 % (3.6) % 9.9 %income margin

International Segment

Revenues

Restaurant sales $ 39,494 $ 105,071 $ 150,842 $ 215,900

Franchise and 1,885 2,640 4,377 5,435 other revenues

Total revenues $ 41,379 $ 107,711 $ 155,219 $ 221,335

Restaurant-level (21.8) % 18.4 % 8.0 % 20.4 %operating margin

(Loss) income from $ (17,070) $ 6,909 $ (10,283) $ 20,629 operations

Operating (loss) (41.3) % 6.4 % (6.6) % 9.3 %income margin

Reconciliation ofSegment (Loss)Income fromOperations to Consolidated(Loss) Income fromOperations

Segment (loss)income from operations

U.S. $ (62,921) $ 78,814 $ (51,542) $ 191,849

International (17,070) 6,909 (10,283) 20,629

Total segment(loss) income from (79,991) 85,723 (61,825) 212,478 operations

Unallocatedcorporate (31,921) (42,263) (91,655) (86,524) operating expense

Total (loss)income from $ (111,912) $ 43,460 $ (153,480) $ 125,954 operations

TABLE THREE

BLOOMIN' BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(in thousands) JUNE 28, 2020 DECEMBER 29, 2019

Cash and cash equivalents (1) $ 181,432 $ 67,145

Net working capital (deficit) (2) $ (483,255) $ (621,553)

Total assets $ 3,433,575 $ 3,592,683

Total debt, net (1) $ 1,210,792 $ 1,048,704

Total stockholders' equity $ 29,198 $ 177,481

Common stock outstanding 87,534 86,946

_________________

(1) During the twenty-six weeks ended June 28, 2020, we issued $230.0 million of senior convertible notes.

We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on(2) Restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.

TABLE FOUR

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED (UNFAVORABLE) FAVORABLE JUNE 28, 2020 JUNE 30, 2019 CHANGE IN ADJUSTEDConsolidated: GAAP ADJUSTED GAAP ADJUSTED QUARTER TO (1) DATE

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Cost of sales 31.4 % 31.2 % 31.1 % 31.1 % (0.1) %

Labor and other 35.7 % 35.7 % 30.0 % 30.0 % (5.7) %related

Other restaurant 30.9 % 30.4 % 24.0 % 23.9 % (6.5) %operating



Restaurant-level 2.1 % 2.7 % 15.0 % 15.0 % (12.3) %operating margin (2)



Segments -Restaurant-level operating margin:

U.S. (2) 3.2 % 3.9 % 14.5 % 14.5 % (10.6) %

International (2) (21.8) % (21.4) % 18.4 % 18.4 % (39.8) %



TWENTY-SIX WEEKS ENDED (UNFAVORABLE) FAVORABLE JUNE 28, 2020 JUNE 30, 2019 CHANGE IN ADJUSTEDConsolidated: GAAP ADJUSTED GAAP ADJUSTED YEAR TO DATE (1)

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Cost of sales 31.8 % 31.4 % 31.4 % 31.4 % - %

Labor and other 32.7 % 32.7 % 29.3 % 29.3 % (3.4) %related

Other restaurant 27.0 % 27.0 % 23.2 % 23.2 % (3.8) %operating



Restaurant-level 8.4 % 8.9 % 16.1 % 16.1 % (7.2) %operating margin (2)



Segments -Restaurant-level operating margin:

U.S. (2) 8.4 % 8.7 % 15.6 % 15.6 % (6.9) %

International (2) 8.0 % 9.3 % 20.4 % 20.4 % (11.1) %

_________________

(1) The table set forth below titled " Restaurant-level Operating Margin Adjustments" provides additional information regarding the adjustments for each period presented. The following categories of our revenue and operating expenses are not(2) included in restaurant-level operating margin because we do not consider them reflective of operating performance at the restaurant-level within a period: Franchise and other revenues, which are earned primarily from (a) franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income.

Depreciation and amortization which, although substantially all of (b) which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.

General and administrative expense which includes primarily (c) non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.

Asset impairment charges and restaurant closing costs which are not (d) reflective of ongoing restaurant performance in a period.

Restaurant-level Operating Margin Adjustments - Following is a summary of unfavorable (favorable) adjusted restaurant-level operating margin adjustments recorded in Other restaurant operating expense (unless otherwise noted below) for the following activities, as described in table five of this release:

THIRTEEN WEEKS TWENTY-SIX WEEKS ENDED ENDED

(dollars in millions) JUNE 28, 2020 JUNE 28, 2020

Restaurant and asset impairments and $ - $ 2.8 closing costs

Restaurant relocations and related costs - (0.1)

COVID-19 related costs (1) (3.7) (9.9)

$ (3.7) $ (7.2)

_________________

Includes $1.2 million and $7.3 million of adjustments for the thirteen and twenty-six weeks ended June 28, 2020, respectively, recorded in Cost of(1) sales, including $0.2 million and $2.0 million of adjustments, respectively, recorded in the international segment. All other adjustments were recorded within the U.S. segment.

TABLE FIVE

BLOOMIN' BRANDS, INC.

(LOSS) INCOME FROM OPERATIONS, NET (LOSS) INCOME AND DILUTED (LOSS) EARNINGSPER SHARE NON-GAAPRECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(in thousands, except JUNE 28, 2020 JUNE 30, JUNE 28, 2020 JUNE 30,per share data) 2019 2019

(Loss) income from $ (111,912) $ 43,460 $ (153,480) $ 125,954 operations

Operating (loss) (19.3) % 4.3 % (9.7) % 5.9 %income margin

Adjustments:

COVID-19 related 30,342 - 79,218 - costs (1)

Severance and othertransformational 2,415 748 24,647 3,603 costs (2)

Restaurantrelocations and - 952 592 1,984 related costs (3)

Legal and other - - 178 - matters

Restaurant and assetimpairments and - 2,039 (2,797) 4,170 closing costs (4)

Total income fromoperations $ 32,757 $ 3,739 $ 101,838 $ 9,757 adjustments

Adjusted (loss)income from $ (79,155) $ 47,199 $ (51,642) $ 135,711 operations

Adjusted operating (13.7) % 4.6 % (3.3) % 6.3 %(loss) income margin



Net (loss) incomeattributable to $ (92,256) $ 29,021 $ (130,363) $ 93,321 common stockholders

Adjustments:

(Loss) income fromoperations 32,757 3,739 101,838 9,757 adjustments

Amortization of debt 1,379 - 1,379 - discount (5)

Total adjustments, 34,136 3,739 103,217 9,757 before income taxes

Adjustment toprovision for income (6,474) (413) (28,469) (1,232) taxes (6)

Redemption ofpreferred stock in - - 3,496 - excess of carryingvalue (7)

Net adjustments 27,662 3,326 78,244 8,525

Adjusted net (loss) $ (64,594) $ 32,347 $ (52,119) $ 101,846 income



Diluted (loss)earnings per shareattributable to $ (1.05) $ 0.32 $ (1.49) $ 1.02 commonstockholders (8)

Adjusted diluted(loss) earnings per $ (0.74) $ 0.36 $ (0.60) $ 1.11 share (8)



Diluted weightedaverage common shares 87,496 90,953 87,312 91,807 outstanding (8)

_________________

Represents costs incurred in connection with the economic impact of the(1) COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.

(2) Relates to severance and other costs incurred as a result of transformational and restructuring activities.

(3) Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation program.

Includes a lease termination gain of $2.8 million during the twenty-six(4) weeks ended June 28, 2020 and asset impairment charges and related costs primarily related to approved closure and restructuring initiatives in 2019.

(5) Represents the amortization of the debt discount related to the issuance of senior convertible notes.

(6) Represents income tax effect of the adjustments for the periods presented.

(7) Represents consideration paid in excess of the carrying value for the redemption of preferred stock of our Abbraccio subsidiary.

Due to the net loss, the effect of dilutive securities was excluded from(8) the calculation of diluted (loss) earnings per share for the thirteen and twenty-six weeks ended June 28, 2020.

Following is a summary of the financial statement line item classification of the net (loss) income adjustments:

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 28, JUNE 30, JUNE 28, JUNE 30, 2020 2019 2020 2019

Cost of sales $ 1,163 $ - $ 7,345 $ -

Other restaurant operating 2,467 65 (176) 43

Depreciation and amortization - 607 407 1,172

General and administrative 3,632 1,075 27,856 4,330

Provision for impaired assets 25,495 1,992 66,406 4,212 and restaurant closings

Interest expense, net 1,379 - 1,379 -

Provision for income taxes (6,474) (413) (28,469) (1,232)

Redemption of preferred stock in - - 3,496 - excess of carrying value

Net adjustments $ 27,662 $ 3,326 $ 78,244 $ 8,525

TABLE SIX

BLOOMIN' BRANDS, INC.

SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATION

(UNAUDITED)

(dollars in thousands) THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

U.S. Segment JUNE 28, JUNE 30, JUNE 28, JUNE 30, 2020 2019 2020 2019

(Loss) income from $ (62,921) $ 78,814 $ (51,542) $ 191,849 operations

Operating (loss) income (11.7) % 8.6 % (3.6) % 9.9 %margin

Adjustments:

COVID-19 related costs 29,805 - 72,784 - (1)

Restaurant relocations - 952 592 1,984 and related costs (2)

Severance (3) - - - 700

Restaurant and assetimpairments and closing - 246 (2,797) 2,081 costs (4)

Adjusted (loss) income $ (33,116) $ 80,012 $ 19,037 $ 196,614 from operations

Adjusted operating (6.2) % 8.8 % 1.3 % 10.2 %(loss) income margin



International Segment

(Loss) income from $ (17,070) $ 6,909 $ (10,283) $ 20,629 operations

Operating (loss) income (41.3) % 6.4 % (6.6) % 9.3 %margin

Adjustments:

COVID-19 related costs 459 - 5,651 - (1)

Restaurant and assetimpairments and closing - 1,793 - 2,089 costs (4)

Adjusted (loss) income $ (16,611) $ 8,702 $ (4,632) $ 22,718 from operations

Adjusted operating (40.1) % 8.1 % (3.0) % 10.3 %(loss) income margin

_________________ Represents costs incurred in connection with the economic impact of the(1) COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.

(2) Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation program.

(3) Relates to severance costs incurred as a result of restructuring activities.

Includes a lease termination gain of $2.8 million during the twenty-six(4) weeks ended June 28, 2020 and asset impairment charges and related costs primarily related to approved closure and restructuring initiatives in 2019.

TABLE SEVEN

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of MARCH 29, OPENINGS CLOSURES JUNE 28,the period): 2020 2020

U.S.:

Outback Steakhouse

Outback Steakhouse-Company-owned 575 1 (9) 567

Franchised 145 - (4) 141

Total 720 1 (13) 708

Carrabba's Italian Grill

Company-owned 204 - (5) 199

Franchised 21 - - 21

Total 225 - (5) 220

Bonefish Grill

Company-owned 190 - (8) 182

Franchised 7 - - 7

Total 197 - (8) 189

Fleming's Prime Steakhouse and Wine Bar

Company-owned 67 - (2) 65

Other

Company-owned 4 1 - 5

U.S. total 1,213 2 (28) 1,187

International:

Company-owned

Outback Steakhouse - Brazil (1) 103 - - 103

Other (2) 29 2 (1) 30

Franchised

Outback Steakhouse - South Korea 72 14 (1) 85(2)

Other (3) 55 - - 55

International total 259 16 (2) 273

System-wide total 1,472 18 (30) 1,460

____________________

(1) The restaurant counts for Brazil are reported as of February 29, 2020 and May 31, 2020 to correspond with the balance sheet dates of this subsidiary.

As of June 30, 2019, the Company had 11 international "dark kitchen"(2) locations that offer delivery and carry-out only. One of these locations was included within Company-owned Other and the remaining 10 were included in Franchised Outback Steakhouse - South Korea.

(3) Includes two and one fast-casual Aussie Grill locations as of June 28, 2020 and June 30, 2019, respectively.

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS TWENTY-SIX WEEKS ENDED ENDED

JUNE 28, JUNE JUNE 28, JUNE 30, 2020 30, 2020 2019 2019

Year over year percentage change:

Comparable restaurant sales (storesopen 18 months or more):

U.S. (1)

Outback Steakhouse (32.9) % 1.3 % (20.6) % 2.4 %

Carrabba's Italian Grill (36.7) % (1.6) % (22.2) % (0.6) %

Bonefish Grill (56.8) % 0.1 % (34.7) % 1.0 %

Fleming's Prime Steakhouse & Wine Bar (56.3) % 1.6 % (33.6) % 1.1 %

Combined U.S. (39.4) % 0.6 % (24.2) % 1.6 %

International

Outback Steakhouse - Brazil (2) (63.9) % 3.5 % (27.4) % 3.6 %



Traffic:

U.S.

Outback Steakhouse (31.0) % (1.6) % (20.2) % (1.0) %

Carrabba's Italian Grill (28.1) % (1.4) % (16.7) % (1.4) %

Bonefish Grill (3) (29.8) % (1.5) % (20.6) % (1.7) %

Fleming's Prime Steakhouse & Wine Bar (43.5) % 3.6 % (28.0) % 0.8 %

Combined U.S. (3) (30.6) % (1.4) % (19.8) % (1.2) %

International

Outback Steakhouse - Brazil (48.5) % 1.2 % (19.0) % (0.7) %



Average check per person (4):

U.S.

Outback Steakhouse (1.9) % 2.9 % (0.4) % 3.4 %

Carrabba's Italian Grill (8.6) % (0.2) % (5.5) % 0.8 %

Bonefish Grill (27.0) % 1.6 % (14.1) % 2.7 %

Fleming's Prime Steakhouse & Wine Bar (12.8) % (2.0) % (5.6) % 0.3 %

Combined U.S. (8.8) % 2.0 % (4.4) % 2.8 %

International

Outback Steakhouse - Brazil (15.2) % 2.1 % (8.4) % 4.4 %

____________________

(1) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.

(2) Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.

In Q2 2020, Bonefish Grill replaced guest count with entr?e count to measure restaurant traffic. Bonefish Grill and Combined U.S. traffic for the twenty-six weeks ended June 28, 2020 were calculated using the entr?e(3) count methodology for Bonefish Grill as if the new methodology was in effect at the start of the fiscal year, which would have increased traffic for Bonefish Grill and Combined U.S. for the thirteen weekend ended March 29, 2020 by 3.1% and 0.5%, respectively.

(4) Average check per person includes the impact of menu pricing changes, product mix and discounts.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200724005054/en/

CONTACT: Mark Graff Group Vice President, IR & Finance (813) 830-5311