Triarc's continuing business, Arby's®, reported improved 2000 adjusted EBITDA (earnings before interest, taxes, other non-operating items, depreciation and amortization and unusual or non-recurring items) of $53.4 million, a 10% increase, and higher fourth quarter adjusted EBITDA of $17.1 million, a 19% increase. Arby's full year and fourth quarter results were positively impacted by higher average unit volumes ("AUV's") at newly opened stores, reflecting both improved sales of core products and the third quarter 2000 rollout of Arby's new Market Fresh turkey, ham, chicken and roast beef premium sandwiches. Arby's full year results were also positively impacted by the 1.0% increase in same-store sales.
Commenting on recent corporate developments, Nelson Peltz, Triarc's Chairman and Chief Executive Officer, said: "The year 2000 was marked by the sale of the Snapple Beverage Group for an enterprise value of $1.45 billion. Triarc also completed a $290 million securitization of Arby's U.S. and Canadian franchise royalties and fees. These transactions provided us with significant liquidity and financial flexibility. With over $650 million of cash and investments, we are carefully evaluating our options, including acquisitions, additional share repurchases and investments, with the goal of further increasing shareholder value.''
Peter May, President and Chief Operating Officer of Triarc, added: "2000 was characterized by strong financial results at Arby's. During 2000, franchisees added 156 new restaurants to the Arby's system and as of February 25, 2001, Arby's franchisees had entered into commitments to build approximately 960 new units. In the next several months, the Arby's system will begin the first year of a new, multiyear national television advertising campaign. The 2001 national advertising campaign will focus on Arby's new Market Fresh premium sandwiches. Franchisees and Arby's management are optimistic that this powerful combination of new products and national television exposure will provide a boost to growth. Operating plans and franchise development plans, which the franchisees and Arby's have jointly developed, should also positively impact the Arby's system in 2001 and beyond.''
Fourth quarter 2000 adjusted EBITDA, on a consolidated basis, increased 169% to $7.1 million, reflecting improvement at Arby's and lower corporate expenses. Fiscal year 2000 adjusted EBITDA, on a consolidated basis, increased 48% to $15.6 million, reflecting improvement at Arby's.
Including unusual, non-recurring, discontinued operations, and extraordinary charges and credits, 2000 fourth quarter net income was $430.6 million, or $19.31 per share, versus net income of $5.0 million, or $.20 per share, for the comparable 1999 quarter. Excluding unusual, non-recurring, discontinued operations and extraordinary charges and credits, 2000 fourth quarter net income was $3.5 million, or $.16 per share, versus net loss of $0.3 million, or $.02 per share, in the comparable 1999 period.
Including unusual, non-recurring, discontinued operations and extraordinary charges and credits, Triarc reported net income for 2000 of $441.2 million, or $18.99 per share, compared to net income of $10.1 million, or $.37 per share, for 1999. Excluding unusual, non-recurring, discontinued operations and extraordinary charges and credits, 2000 net income was $21.2 million, or $.92 per share, versus net income of $9.3 million, or $.34 per share, in the comparable 1999 period.
On October 25, 2000 Triarc completed the sale of the Snapple Beverage Group, its premium beverage and soft drink concentrates businesses. As reflected above, Triarc's results for the 2000 and 1999 fourth quarter and fiscal year periods reflect these businesses as discontinued operations.
On July 19, 1999 Triarc sold substantially all of its remaining 42.7% interest in its propane business, retaining a 1% limited partner interest. Also as reflected above, Triarc's results for the 1999 periods reflect this business as discontinued operations.
Triarc recorded extraordinary charges reflected above for the 1999 and 2000 fiscal years for the write-off of deferred financing costs and redemption premiums related to the debt repaid as part of the February 1999 debt refinancings and as part of the October 2000 sale of its beverage businesses.
We provide supplementary disclosure in addition to reported EPS by presenting ``Cash EPS'', "Adjusted EPS'' and "Adjusted Cash EPS''. Cash EPS is calculated by adding back the after tax effect of depreciation and amortization charges to reported EPS. Adjusted EPS is calculated by adjusting reported EPS to remove the after tax EPS effect of unusual, non-recurring, discontinued operations and extraordinary charges and credits. Adjusted cash EPS is calculated by adding back to adjusted EPS the after tax effect of depreciation and amortization charges.
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