"With approximately $640 million in cash and investments, we continue to evaluate our options, including acquisitions, additional share repurchases and investments, with the goal of further increasing shareholder value," says Triarc's chairman and CEO Nelson Peltz, commenting on recent corporate developments. "We are also pleased with the first quarter results at Arby's and expect the franchise system to gain momentum as the year progresses."
Peter May, president and chief operating officer of Triarc, added: "In April, the Arby's system began the first year of a new, multiyear national television advertising campaign on cable TV. The 2001 national advertising campaign will focus on Arby's new Market Fresh premium sandwiches. Franchisees and Arby's management are optimistic that this combination of new products and national television exposure will provide a boost to growth. Franchise development plans should also positively impact the Arby's system in 2001 and beyond.''
As previously reported, on October 25, 2000 Triarc completed the sale of the Snapple Beverage Group, its premium beverage and soft drink concentrates businesses. These business segments have been accounted for as discontinued operations and comparative financial information included in this release for 2000 has been reclassified accordingly.
First quarter 2001 adjusted EBITDA, on a consolidated basis, increased substantially to $2.9 million, reflecting continued improvement at Arby's.
Following is a discussion of consolidated results for the first quarter period of 2000 and 2001. This comparison was impacted by unusual, non-recurring and discontinued operations charges and credits described below. All per share amounts are presented on a fully diluted basis, where applicable.
Including unusual, non-recurring and discontinued operations charges and credits, 2001 first quarter net income was $8.2 million, or $.35 per share, versus net income of $2.7 million, or $.11 per share, for the comparable 2000 quarter. Excluding unusual, non-recurring and discontinued operations charges and credits, 2001 first quarter net income was $5.0 million, or $.21 per share, versus net income of $8.4 million, or $.34 per share, in the comparable 2000 period, reflecting a $10.3 million gain on the sale of an investment in Ascent Entertainment Group, Inc. in first quarter 2000 and increased interest expense in 2001 as a result of the securitization financing of Arby's U.S. and Canadian royalties and franchise fees.
The following table reconciles net income excluding unusual, non-recurring and discontinued operations charges and credits to reported net income for the first quarter on a comparative basis.
Earnings Per Share
Triarc is a holding company and, through its subsidiaries, the franchisor of the Arby's restaurant system.