GlobeNewswire Inc | Apr 29, 2021 07:00AM EDT

April 29, 2021

- Total revenue increased 12% in the Fourth Quarter -

- BurgerFi Opens 11 New Locations in 2020 with Plans to Open Approximately 30 Locations in 2021 -

- Delivery & Digital Sales Increase More Than 80% Year-Over-Year in the Fourth Quarter -

PALM BEACH, Fla., April 29, 2021 (GLOBE NEWSWIRE) -- BurgerFiInternational Inc.(Nasdaq: BFI, BFIIW), one of the nations fastest-growing premium fast-casual concepts, QSRs 2020 Breakout Brand of the Year and the top better burger chain in USA Todays 10Best Readers Choice for 2021, is reporting financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial Summary vs. Same Year-Ago Quarter

-- Total revenue increased 12% to $9.8 million compared to $8.7 million -- Same store sales at company owned restaurants decreased 5% -- Systemwide sales decreased 7% to $34.6 million compared to $37.3 million -- Net income attributable to controlling interests and common shareholders increased to $6.0 million compared to $0.9 million; the current quarter included non-cash gain on change in value of warrant liability of $5.6 million -- Adjusted EBITDA increased 19% to $1.2 million compared to $1.0 million (see reconciliation of GAAP to Non-GAAP measures below)

Full Year 2020 Financial Summary vs. 2019

-- Total revenue increased 2% to $34.3 million compared to $33.6 million -- Same store sales at company owned restaurants decreased 15% -- Systemwide sales decreased 11% to $129.3 million compared to $145.8 million -- Net income attributable to controlling interests and common shareholders increased to $6.0 million compared to $2.9 million; the current year included non-cash gain on change in value of warrant liability of $5.6 million -- Adjusted EBITDA was $2.2 million compared to $4.1 million (see reconciliation of GAAP to Non-GAAP Measures

Delivery + BurgerFi App Systemwide Sales Full Year 2020 * 1,610,000+ orders

* $38.9 million systemwide sales

* +41% in order volume

* +64% in sales volume

Management Commentary2020 was a transformative year for BurgerFi, said Julio Ramirez, CEO of BurgerFi. We made progress expanding our footprint with 11 new restaurants, including our first drive-thru location in Kentucky. Additionally, we opened nine delivery-only ghost kitchens with REEF Technology and Epic Kitchens to test out specific markets and build brand recognition. BurgerFi also launched curbside service via digital channels integrated through our website for contactless service. As customer habits shifted during the pandemic, I am incredibly proud of our teams adaptability and the strategic investments we made in our digital platforms to provide a better omnichannel customer experience. These investments allowed us to recover same store sales sequentially since the start of the pandemic, while also growing our systemwide delivery and digital sales by over 64% for the year.

As we move forward in 2021, we are eager to continue executing our growth strategy with a significant capital infusion from the closing of the business combination in December 2020. We have already opened four new locations including an additional drive-thru location in Nevada in March and we have eight more restaurants currently under construction. We are excited to bring the best better burger experience to a broader customer base with plans to open approximately 30 locations in existing and new markets primarily throughout the Southeast and Mid-Atlantic regions in 2021. We are also continuing to grow internationally with plans to open our first location in Saudi Arabia during the fourth quarter as part of our multi-unit agreement with Food Supplies Co. We are confident in our financial position and ability to capitalize on the growth opportunities in the future.

Commenting on the results, Ophir Sternberg, Executive Chairman of BurgerFi, stated: I commend the entire organizations ability to not only adapt to the unprecedented challenges experienced this year in the food industry, but also the work being done to lay the foundation for growth as we embark into the new year. As I look at the number of BurgerFis under development, the recent investments in digital capabilities, the unique expansion opportunities ahead and the bolstered management team and board, I believe that we are just beginning to tap into our true growth potential. We look forward to introducing consumers around the globe to our best-in-class menu.

Fourth Quarter 2020 Financial ResultsRevenue in the fourth quarter of 2020 improved 12% to $9.8 million compared to $8.7 million in the year-ago quarter. The increase was primarily a result of four new company owned stores and higher terminated franchise fees. These increases were partially offset by a 5% decline in company owned same store sales and a decrease in royalties due to a 7% decline in systemwide sales, both as a result of the continued effects of pandemic-related impact on demand and restaurant closures. Increased delivery and digital sales continued to support sequential improvement of same store sales in the fourth quarter. Systemwide sales in the fourth quarter of 2020 were $34.6 million compared to $37.3 million in the year ago period.

Restaurant-level operating expenses for the fourth quarter were $5.8 million compared to $5.4 million in the year-ago quarter. Restaurant-level operating margin improved 540 basis points to 15.1% compared to 9.7% in the fourth quarter of 2019, driven primarily by lower labor costs, partially offset by higher third-party delivery fees.

Net income attributable to controlling interests and common shareholders in the fourth quarter increased to $6.0 million compared to $0.9 million in the year-ago quarter. The increase was driven by a non-cash gain on change in value of warrant liability of $5.6 million. Without this item, the decline of $0.5 million was primarily attributable to the amortization of intangible assets recorded as part of the business combination in December and share-based compensation, partially offset by the additional operating income from higher sales and improved operating margins.

Adjusted EBITDA in the fourth quarter of 2020 increased 19% to $1.2 million compared to $1.0 million in the year-ago quarter. The increase was primarily a result of the improvement in sales and improved store operating margins during the period. See reconciliation of GAAP to Non-GAAP measures below.

Full Year 2020 Financial ResultsRevenue in 2020 increased slightly to $34.3 million compared to $33.6 million in the prior year period. The increase was primarily due to increased revenue from company owned stores of $2 million offset by lower royalty fees of $1.2 million as a result of systemwide sales declines of 11%. The increase in company owned stores revenue was primarily due to five new stores offset by comparable store sales decreases of 15% resulting from the impact of COVID-19 related impact on demand and restaurant closures. These decreases were partially mitigated by higher delivery and app sales sequentially throughout the year, particularly during the fourth quarter. Systemwide restaurant sales for 2020 were $129.3 million compared to $145.8 million in the prior year.

Restaurant-level operating expenses for the year were $22.6 million compared to $20.9 million in the prior year. The slightly higher expenses were primarily due to the increase in variable restaurant-level expenses and costs associated with the delivery business. Restaurant-level operating margin improved 90 basis points to 10.7% compared to 9.8% in 2019 primarily as a result of improved labor costs, partially offset by the increase in delivery sales.

Net income attributable to controlling interests and common shareholders in 2020 increased to $6.0 million compared to $2.9 million in 2019. The increase was driven by a non-cash gain on change in value of warrant liability of $5.6 million. Without this item, the decrease of $2.5 million is driven by the increase in restaurant level operating expenses, brand development costs, depreciation and amortization and non-cash stock compensation expense.

Adjusted EBITDA for the full year was $2.2 million compared to $4.1 million in the prior year. The decline is primarily attributable to the increase in restaurant level operating expenses and brand development costs during the year. See reconciliation of GAAP to Non-GAAP measures below.

LiquidityAt December 31, 2020, the Company had $36.7 million in unrestricted cash, compared to $1.7 million at December 31, 2019. This increase is attributable to the raising of capital from the Companys business combination with OPES Acquisition Corp. on December 16, 2020. The Company had $3.0 million outstanding on its revolving credit line at December 31, 2020, compared to $2.3 million at the end of 2019, which was subsequently repaid in January.

2021 OutlookBurgerFi is optimistic about its long-term prospects. However, due to COVID-related volatility that is impacting its ability to deliver updated financial projections, the company is suspending its financial outlook for 2021. BurgerFi still plans on opening approximately 30 company and franchise operated restaurants in 2021.

Additionally, BurgerFi continues to be focused on bolstering the customer experience and providing optimal order pickup options across all formats. This includes continuing to invest in digital capabilities and introducing more drive-thru locations in 2021 after the recent successful openings of the drive-thru format in Kentucky and Nevada, along with consistently innovating its menu with limited-time offerings that customers crave.

Conference Call Given the proximity to when BurgerFi expects to report its first quarter financial results, the Company will hold a combined conference call to discuss both its fourth quarter and full year 2020 financial results, along with its first quarter 2021 financial results. BurgerFi expects to hold this combined conference call in conjunction with releasing its first quarter 2021 financial results, which is anticipated in May.

About BurgerFi International(Nasdaq:BFI, BFIIW)Established in 2011, BurgerFi is among the nation's fastest-growing better burger concepts with approximately 119 BurgerFi restaurants domestically and internationally. The concept is chef-founded and is committed to serving fresh food of transparent quality. BurgerFi uses 100% American angus beef with no steroids, antibiotics, growth hormones, chemicals or additives. BurgerFi's menu also includes high quality wagyu beef, antibiotic and cage-free chickenofferings, fresh, hand-cut sides and custard shakes and concretes. BurgerFi was named QSR Magazine's Breakout Brand of 2020, placed in the top 10 on Fast Casual's Top 100 Movers & Shakers list in 2020, was named "Best Burger Joint" by Consumer Reports and fellow public interest organizations in the 2019 Chain Reaction Study, listed as a "Top Restaurant Brand to Watch" by Nation's Restaurant News in 2019, included in Inc. Magazine's Fastest Growing Private Companies List, and ranked on Entrepreneur's 2017 Franchise 500. To learn more about BurgerFi or to find a full list of locations, please visitwww.burgerfi.com. Download the BurgerFi App on iOS or Android devices for rewards and 'Like' BurgerFi on Facebook or follow @BurgerFi on Instagram and Twitter. BurgerFi is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.

About Non-GAAP Financial MeasuresTo supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the measure Adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates managements internal comparisons to our historical performance and liquidity as well as comparisons to our competitors operating results. We believe this non-GAAP financial measure is useful to investors both because (1) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our institutional investors and the analyst community to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from this non-GAAP financial measure and evaluating this non-GAAP financial measure together with its relevant financial measures in accordance with GAAP.

For more information on this non-GAAP financial measures, please see the tables captioned Reconciliation of Net Income (Loss) to Adjusted EBITDA included at the end of this release.

Forward-Looking StatementsThis press release may contain "forward-looking statements" within the meaning of Section27A of the Securities Act of 1933, as amended and Section21E of the Securities Exchange Act of 1934, as amended(the "Exchange Act"), including BurgerFi's estimates of its future business outlook, prospects or financial results. Statements regarding BurgerFi's objectives, store opening plans, expectations, intentions, beliefs or strategies, or statements containing words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," "implies," or similar expressions are intended to identify such forward-looking statements. It is important to note that BurgerFi's actual results could differ materially from those in such forward-looking statements, and undue reliance should not be placed on such statements. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic. Among the important factors that could cause such actual results to differ materially are (i) the impact of any economic recessions in the U.S. and other parts of the world, (ii) fluctuations in the global economy, (iii) BurgerFi's ability of maintaining its margins, (iv) changes in applicable accounting principles or interpretations of such principles, (v) delays in BurgerFi's ability to develop new products and services and market acceptance of new products and services, (vi) rapid technological change, (vii) BurgerFi's ability to attract and retain key management personnel, (viii) the existence of substantial competition, and (ix) other risk factors listed from time to time in BurgerFi's Exchange Act reports and other filings with the Securities and Exchange Commission. All forward-looking statements included in this press release are made as of the date hereof, and BurgerFi undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, or otherwise

Investor Relations Contact:Gateway Investor RelationsCody Slach or Cody Cree(949) 574-3860BFI@GatewayIR.com

Company Contact:BurgerFi International Inc.Ashley Spitz,IR@burgerfi.com

Media Relations Contact:Quinn PRLaura Neroulias,LNeroulias@quinn.pr

BurgerFi International Inc., and SubsidiariesConsolidated Balance Sheets

December December(in thousands, except for per share data) 31, 31, 2020 2019ASSETS CURRENT ASSETS Cash, including Variable interest entities of $0and $3, $ 36,720 $ 1,690respectivelyCash - restricted 3,663 727Accounts receivable, net 718 517Inventory 268 249Deferred income taxes 713 ?Asset held for sale 732 ?Other current assets 1607 416TOTAL CURRENT ASSETS 3,599 44,421PROPERTY & EQUIPMENT, net ? including variable 8,004 6,301interest entities of $0 and $853, respectivelyDUE FROM RELATED COMPANIES 74 3,611GOODWILL ? including variable interest entities 398of $0 and $398, respectively 119,542INTANGIBLE ASSETS 116,824 235OTHER ASSETS 251 238TOTAL ASSETS $ 289,116 $ 14,382LIABILITIES AND STOCKHOLDERS'/MEMBERS? EQUITY CURRENT LIABILITIES Accounts payable - trade $ 1,678 $ 1,265Accrued expense 1,203 545Gift card liability 430 586Revolving line of credit 3,012 2,317Notes payable - current ? variable interestentities ? no recourse to general credit of the ? 1,207CompanyNotes payable - current ? 1,438Current portion deferred initial franchise fees 490 438Other deposit 907 ?TOTAL CURRENT LIABILITIES 9,158 6,358NON-CURRENT LIABILITIES Deferred initial franchise fees, net of current 2,816 4,250portionDue to related companies ? 271Deferred rent 29 996Derivative warrant liability 16,516 ?Notes payable ? 1,522TOTAL LIABILITIES 11,875 30,041COMMITMENTS AND CONTINGENCIES Stockholders'/Members' equity MEMBERS? EQUITY - Before non-controllinginterest, including variable interest entities ? 2,492of $47 as of December 31, 2019MEMBERS? EQUITY - Non-controlling interest ? 15Common stock, $0.0001 par value, 100,000,000shares authorized, 17,541,838 shares issued and 2 ?outstanding as of December 31, 2020Additional paid-in capital ? 261,298Retained deficit (2,225 ) ?TOTAL STOCKHOLDERS' EQUITY 2,507 259,075TOTAL LIABILITIES AND STOCKHOLDERS'/MEMBERS? $ 289,116 $ 14,382EQUITY

BurgerFi International Inc., and SubsidiariesConsolidated Statements of Operations

As Opes Acquisition Corp.s historical financial information is excluded from the Predecessor financial information, the business, and thus financial results, of the Successor and Predecessor entities, are expected to be largely consistent, excluding the impact on certain financial statement line items that were impacted by the Business Combination. Management believes reviewing our operating results for the three-months and year ended December 31, 2020by combining the results of the Predecessor and Successor periods (S/P Combined) is more useful in discussing our overall operating performance when compared to the same periods in the prior year. Accordingly, in addition to presenting our results of operations as reported in our consolidated financial statements in accordance with GAAP, certain of the tables below present the non-GAAP combined results for those periods.

S/P Successor Predecessor Combined Predecessor (non-GAAP) (Unaudited) January 1, December 16, 2020 2020 Year Ended Year Ended(in thousands) through December 31, through December December 2020 December 31, 2020 31, 2019 15, 2020REVENUE Restaurant $ 1,350 $ 23,966 $ 25,316 $ 23,183 salesRoyalty and 255 6,116 6,371 7,369 other feesTerminated ? 693 693 825 franchise feesRoyalty - branddevelopment and 74 1,441 1,515 1,720 co-opInitial 25 362 387 458 franchise feesTOTAL REVENUE 1,704 32,578 34,282 33,555 Restaurantlevel operating expenses:Food, beverage 370 6,567 6,937 6,316 and paper costsLabor and related 321 6,269 6,590 7,167 expensesOther operating 323 6,007 6,330 5,271 expensesOccupancy andrelated 33 2,707 2,740 2,149 expensesGeneral andadministrative 857 6,925 7,782 7,230 expensesShare-basedcompensation 818 ? 818 ? expenseDepreciationand 348 1,062 1,410 825 amortizationexpenseBranddevelopment andco-op 34 2,283 2,317 1,732 advertisingexpenseGain ondisposal of ? (2 ) (2 ) (184 )property andequipmentTOTAL OPERATING 3,104 31,818 30,506 EXPENSES 34,922OPERATING (1,400 ) 760 (640 ) 3,049 (LOSS) INCOMEGain onextinguishment 791 ? 791 ? of debtGain on changein value of 5,597 ? 5,597 ? warrantliabilityInterest (6 ) (125 ) (131 ) (79 )expenseIncome before 4,982 635 2,970 income taxes 5,617Income tax 366 ? 366 ? benefitNet Income 5,348 635 2,970 5,983Net IncomeAttributable to Non-Controlling 20 20 35 Interests ?(predecessor)Net IncomeAttributable toCommonShareholders $ 5,348 $ 615 $ 5,963 $ 2,935 (successor) andControllingInterests(predecessor)

BurgerFi International Inc., and SubsidiariesConsolidated Statements of Operations

(Unaudited) (Unaudited) Three Months Ended Three Months Ended December December 31, 2020 31, 2019 (S/P Combined) (Predecessor) (Non-GAAP)(in thousands) REVENUE Restaurant sales $ 6,865 $ 6,019 Royalty and other fees 1,684 1,996 Terminated franchise 650 132 feesRoyalty - brand 463 434 development and co-opInitial franchise fees 121 116 TOTAL REVENUE 9,783 8,697 Restaurant level operating expenses:Food, beverage and 1,890 1,647 paper costsLabor and related 1,517 1,860 expensesOther operating 1,787 1,356 expensesOccupancy and related 632 575 expensesGeneral andadministrative 2,797 1,980 expensesShare-based 818 ? compensation expenseDepreciation expense 263 235 Amortization expense 335 ?Brand development andco-op advertising 496 334 expenseGain on disposal of (2 ) (184 )property and equipmentTOTAL OPERATING 10,533 7,803 EXPENSESOPERATING (LOSS) (750 ) 894 INCOMEGain on extinguishment 791 ? of debtGain on change invalue of warrant 5,597 ? liabilityInterest expense (33 ) (17 )Income before income 877 taxes 5,605Income tax benefit 366 ? Net Income 877 5,971Net Income Attributable to Non-Controlling ? (2 )Interests (predecessor)Net IncomeAttributable to CommonShareholders $ 5,971 $ 879 (successor) andControlling Interests(predecessor)

BurgerFi International Inc., and SubsidiariesConsolidated Statement of Cash Flows

Successor Predecessor December 16, January 1, Year Ended(in thousands) 2020 through 2020 through December 31, December 31, December 15, 2019 2020 2020CASH FLOWS PROVIDED BY OPERATING ACTIVITIESNet income $ 5,348 $ 635 $ 2,970 Adjustments toreconcile net income to net cash provided by(used in) -Operating activities Provision for bad debts ? 133 87 Depreciation and 348 1,062 825 amortizationDeferred income taxes (370 ) ? ? Share-based 818 ? ? compensationForfeited franchise ? (693 ) (825 )depositsGain on extinguishment (791 ) ? ? of debtGain on sale offranchise/ ? ? (184 )corporate-owned storeGain on change in value (5,597 ) ? ? of warrant liabilityChanges in operatingassets and liabilities, net of acquisitionsAccounts receivable (339 ) 6 (128 )Inventory (8 ) (10 ) (127 )Other assets (552 ) 121 (191 )Accounts payable ? (275 ) 751 (380 )tradeAccrued expenses and 284 218 (155 )gift card liabilityDeferred franchise fees 253 51 376 Other liabilities (57 ) 422 260 NET CASH (USED IN)PROVIDED BY OPERATING (938 ) 2,696 2,528 ACTIVITIESNET CASH FLOWS FROM INVESTING ACTIVITIESPurchase of restaurant ? (385 ) ? from franchiseeDeposit on sale ? 907 ? Proceeds from depositon potential sale of ? ? 938 franchise/corporateowned storePurchase of property (265 ) (3,244 ) (2,437 )and equipmentAcquisition of netassets, net of cash (27,210 ) ? ? acquiredAdvances to related (74 ) (7,863 ) (10,601 )companiesRepayments from related ? 11,205 11,575 companiesNET CASH (USED IN)PROVIDED BY INVESTING (27,549 ) 620 (525 )ACTIVITIESNET CASH FLOWS FROM FINANCING ACTIVITIESProceeds on revolving ? 2,987 2,317 line of creditPayments on line of ? (2,290 ) ? creditNote payable proceeds ? 2,406 ? Payments on notes ? (39 ) (86 )payableMembers? distributions ? (6,007 ) (4,663 )Members? contributions ? ? 594 NET CASH (USED IN)PROVIDED BY FINANCING ? (2,943 ) (1,838 )ACTIVITIESNET (DECREASE) INCREASEIN CASH AND CASH (28,487 ) 373 165 EQUIVALENTSCASH AND CASHEQUIVALENTS, beginning 68,870 2,417 2,252 of periodCASH AND CASHEQUIVALENTS, end of $ 40,383 $ 2,790 $ 2,417 period

BurgerFi International Inc., and SubsidiariesReconciliation of Net Income to Adjusted EBITDA(Non-GAAP) (Unaudited)

S/P Combined Predecessor (non-GAAP)

Reconciliation of GAAP to non-GAAP Items Year Ended Year Ended(in thousands) December 31, December 31, 2020 2019Net Income Attributable to CommonShareholders (successor) and Controlling $ 5,963 $ 2,935 Interests (predecessor)Adjustments: Depreciation and amortization 1,410 825 Merger and acquisition related costs 428 ? Preopening costs 214 425 Interest 131 79 Share-based compensation expense 818 ? Gain on disposal of property and equipment (793 ) (184 )and extinguishment of debtGain on change in value of warrant (5,597 ) ? liabilityIncome tax benefit (366 ) ? Adjusted EBITDA $ 2,208 $ 4,080

(Unaudited) (Unaudited)Reconciliation of GAAP to non-GAAP Three Months Three MonthsItems (in thousands) Ended December Ended December 31, 2020 31, 2019Net Income Attributable to Common Shareholders (successor) and $ 5,971 $ 879 Controlling Interests (predecessor)Adjustments: Depreciation and amortization 598 235 Merger and acquisition related costs 428 ? Preopening costs 82 43 Interest 33 17 Share-based compensation expense 818 ? Gain on disposal of property and (793 ) (184 )equipment and extinguishment of debtGain on change in value of warrant ) ? liability (5,597Income tax benefit (366 ) ? Adjusted EBITDA $ 1,174 $ 990