Twin Hospitality Group Inc-A(TWNP) - 2024 Q4 - Annual Results

Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results Twin Hospitality Group's Q4 and FY2024 financial results detail strategic progress and financial performance Management Commentary and Strategic Progress Management commentary highlights strategic progress in 2024, including new lodge openings, pipeline expansion, and securing a 30-year securitization facility - Opened nine new Twin Peaks lodges in 2024, expanding the development pipeline to over 100 lodges, with 9-11 new locations targeted for 2025[4] - Successful conversion of legacy restaurants, including Smokey Bones, into Twin Peaks lodges is underway, with two more planned for 2025[4] - A new 30-year securitization facility was secured in Q4 to stabilize financial structure and support growth initiatives[4] Financial Highlights Fiscal 2024 saw significant revenue growth but increased net losses, declining same-store sales, and lower Adjusted EBITDA Fourth Quarter 2024 Financial Highlights (vs. Q4 2023) Q4 2024 revenue decreased by 8.2% to $86.5 million, with increased net loss and declining same-store sales and Adjusted EBITDA | Metric | Q4 2024 (13 weeks) | Q4 2023 (14 weeks) | Change | | :--- | :--- | :--- | :--- | | Total Revenue ($ millions) | $86.5 | $94.2 | -8.2% | | System-wide Sales | - | - | -4.0% | | Twin Peaks Same-Store Sales | - | - | -0.6% | | Loss from Operations ($ millions) | ($7.1) | ($0.9) | Increased Loss | | Net Loss ($ millions) | ($12.0) | ($8.8) | Increased Loss | | Restaurant Contribution Margin | 8.1% | 9.8% | -1.7 p.p. | | Adjusted EBITDA ($ millions) | $4.1 | $6.6 | -38.1% | Full Fiscal Year 2024 Financial Highlights (vs. FY 2023) Full fiscal year 2024 revenue grew 53.2% to $353.8 million, but net loss increased significantly, with declining same-store sales and Adjusted EBITDA | Metric | FY 2024 (52 weeks) | FY 2023 (53 weeks) | Change | | :--- | :--- | :--- | :--- | | Total Revenue ($ millions) | $353.8 | $230.9 | +53.2% | | System-wide Sales Growth | - | - | +25.3% | | Twin Peaks Same-Store Sales | - | - | -3.1% | | (Loss)/Income from Operations ($ millions) | ($8.3) | $12.9 | N/A | | Net Loss ($ millions) | ($48.2) | ($13.8) | Increased Loss | | Restaurant Contribution Margin | 9.2% | 13.1% | -3.9 p.p. | | Adjusted EBITDA ($ millions) | $20.7 | $28.3 | -27.1% | Detailed Fourth Quarter 2024 Financial Analysis Q4 2024 revenue decreased by $7.8 million due to fewer operating weeks, lower sales, and conversion closures, impacting expenses and debt extinguishment - Q4 revenue decreased by $7.8 million, primarily due to a $6.5 million impact from fewer operating weeks and Smokey Bones conversions[8] - General and administrative expenses increased to $12.1 million, including $5.0 million in Smokey Bones store closure costs[10] - Other expense, net, rose to $13.3 million, including a $2.4 million loss on debt extinguishment from refinancing[11] Appendix The appendix provides definitions for key financial metrics, explanations of non-GAAP measures, and detailed financial statements Key Financial Definitions This section defines key performance indicators including new store openings, same-store sales growth, and system-wide sales growth - Same-store sales growth: Change in year-over-year sales for stores open at least eighteen months[13] - System-wide sales growth: Percentage change in sales for all stores compared to the prior fiscal period[14] Non-GAAP Measures Non-GAAP measures like Adjusted EBITDA and Restaurant-Level Contribution are used to evaluate core operating performance and productivity - Adjusted EBITDA: EBITDA excluding acquisitions, refranchising losses, impairment charges, and non-recurring items for core operations insight[22] - Restaurant-Level Contribution: Company-owned restaurant sales less direct operating costs, used to evaluate restaurant-level productivity[23] Financial Statements and Reconciliations This section provides detailed financial statements, including Consolidated Statements of Operations and reconciliations for non-GAAP measures | (In thousands) | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $86,481 | $94,235 | $353,801 | $230,867 | | Income (Loss) from Operations | ($7,065) | ($897) | ($8,330) | $12,940 | | Net Loss | ($11,993) | ($8,768) | ($48,170) | ($13,840) | | (In thousands) | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | ($11,993) | ($8,768) | ($48,170) | ($13,840) | | Adjusted EBITDA | $4,094 | $6,562 | $20,654 | $28,333 | | (In thousands) | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Income (Loss) from Operations | ($7,065) | ($897) | ($8,330) | $12,940 | | Restaurant-Level Contribution | $6,283 | $8,356 | $29,305 | $26,166 | | Restaurant-Level Contribution Margin | 8.1% | 9.8% | 9.2% | 13.1% |