Press Release Details

Franchise Group, Inc. Announces Fourth Quarter and Full Fiscal Year 2021 Financial Results

Feb 23, 2022 at 4:03 PM EST

DELAWARE, Ohio, Feb. 23, 2022 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group,” “FRG” or the “Company”) today announced the financial results of its fiscal fourth quarter and fiscal year ended December 25, 2021. For the fourth quarter of fiscal 2021, total reported revenue for Franchise Group was $942.3 million, net income from continuing operations was $151.8 million or $3.64 per fully diluted share, Adjusted EBITDA was $86.6 million and Non-GAAP EPS was $0.77 per share. For the full fiscal year 2021, total reported revenue for Franchise Group was $3.3 billion, net income from continuing operations was $192.0 million or $4.48 per fully diluted share, Adjusted EBITDA was $338.4 million and Non-GAAP EPS was $3.99 per share.

In the fourth quarter, FRG completed the acquisitions of Sylvan Learning (“Sylvan”) and W.S. Badcock Corporation (“Badcock”). The results of Sylvan and Badcock are included in FRG’s results from the respective acquisition date through the end of the fiscal year.   Badcock added $102.1 million of revenue and $10.1 million of Adjusted EBITDA in the fourth quarter which was not included in our previously announced financial outlook. Without Badcock, FRG would have reported $3.2 billion of revenue and $328.3 million of Adjusted EBITDA. On December 25, 2021, total cash on hand was approximately $292.7 million and outstanding term debt was approximately $1.4 billion. On December 27, 2021, FRG repaid an additional $181 million of term debt from the proceeds from the previously announced sale of the Badcock consumer credit accounts receivable portfolio reducing net debt to approximately $1.2 billion.

Brian Kahn, Franchise Group’s President and CEO stated, “Our management teams, associates, franchisees and dealers are executing operationally, and franchising momentum continues with new development agreements for 224 new locations in addition to 160 new store openings during 2021. We expect to complete the sale leaseback of Badcock’s real estate portfolio within the next 90 days and intend to use the proceeds to repay the remaining $175 million of Badcock acquisition financing.”        

The Company has six reportable segments: American Freight; The Vitamin Shoppe; Pet Supplies Plus; Buddy’s; Sylvan; and Badcock. The following table summarizes Revenue, Adjusted EBITDA, and Net Income/(Loss) for each of these segments.   Reconciliations of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS to their respective most comparable GAAP measures, are included below under “Non-GAAP Financial Measures and Key Metrics.”

                             
  For the Three Months Ended      For the Twelve Months Ended  
  December 25, 2021     December 25, 2021  
      Adjusted   Net         Adjusted     Net  
  Revenue   EBITDA   Income/(Loss)     Revenue   EBITDA     Income/(Loss)  
  (In thousands)     (In thousands)    
American Freight $         237,979   $           21,076   $            2,018     $         988,892   $           96,667     $           29,555  
Vitamin Shoppe 274,617   23,284   6,766     1,172,725   137,188     80,641  
Pet Supplies Plus 303,727   25,085   11,812     917,439   77,750     25,489  
Buddy's 14,215   3,877   2,291     64,409   17,880     12,930  
Sylvan Learning 9,682   2,934   (786 )   9,682   2,934     (786 )
Badcock 102,057   10,071   138,494     102,057   10,071     138,494  
Corporate -   270   (8,813 )   -   (4,116 )   (94,357 )
Total $         942,276   $           86,597   $         151,782     $      3,255,204   $         338,374     $         191,966  
                             

Outlook
Franchise Group is reiterating its previously announced financial outlook for fiscal year 2022 of revenue of approximately $4.45 billion, net income of approximately $180 million or $4.20 per share, Adjusted EBITDA of approximately $450 million and Non-GAAP EPS of approximately $5.00 per share. In formulating its outlook, the Company anticipates it will complete the sale of the Badcock real estate portfolio by the end of its fiscal second quarter of 2022 and expects to reduce net debt to approximately $1.1 billion by the end of its fiscal year 2022. In calculating EPS, the Company is using approximately 41 million weighted average shares outstanding. Non-GAAP EPS is calculated by adding the tax effected impact of adjustments to EBITDA to net income on a per share basis. In calculating GAAP and Non-GAAP EPS, the Company is currently using an effective tax rate of approximately 27%.

The Company does not provide a quantitative reconciliation of forward-looking, Non-GAAP financial measures such as forecasted Adjusted EBITDA or Non-GAAP EPS to the most directly comparable GAAP financial measures because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have significant impact on such calculations, and providing them may imply a degree of precision that would be confusing or potentially misleading. Estimates exclude potential acquisitions, divestitures or refranchising activities. See “Non-GAAP Financial Measures and Key Metrics.”

Conference Call Information
Franchise Group will conduct a conference call on February 23rd at 4:30 P.M. ET to discuss its business, review financial results for its fiscal 2021 fourth quarter and full year and discuss its outlook for fiscal year 2022. A real-time webcast of the conference call will be available on the Events page of Franchise Group’s website at www.franchisegrp.com. The conference call can also be accessed live via telephone at (877) 784-1793. The passcode is 3778028. Please dial in 5-10 minutes prior to the scheduled start time.

About Franchise Group, Inc.
Franchise Group is an owner and operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise Group’s business lines include Pet Supplies Plus, American Freight, The Vitamin Shoppe, Badcock Home Furniture & more, Buddy’s Home Furnishings and Sylvan Learning. On a combined basis, Franchise Group currently operates over 3,000 locations predominantly located in the U.S. that are either Company-run or operated pursuant to franchising and dealer agreements.

FRANCHISE GROUP, INC. AND SUBSIDIARIES  
Consolidated Balance Sheets  
           
(In thousands, except share count and per share data)   December 25, 2021   December 26, 2020  
Assets   (Unaudited)   (Unaudited)  
Current assets:          
Cash and cash equivalents   $                   292,714   $                   148,780  
Current receivables, net   118,698   67,335  
Current securitized receivables, net   369,567   -  
Inventories, net   673,170   302,307  
Current assets held for sale   -   43,023  
Other current assets   24,063   13,997  
Total current assets   1,478,212   575,442  
Property, plant, and equipment, net   449,886   135,872  
Non-current receivables, net   11,755   12,800  
Non-current securitized receivables, net   47,252   -  
Goodwill   806,536   448,258  
Intangible assets, net   127,951   16,592  
Tradenames   222,687   93,300  
Operating lease right-of-use assets   714,741   502,104  
Non-current assets held for sale   -   55,116  
Investment in equity securities   35,249   -  
Other non-current assets   18,902   8,428  
Total assets   $                3,913,171   $                1,847,912  
Liabilities and Stockholders Equity          
Current liabilities:          
Current installments of long-term obligations   $                   486,170   $                   104,053  
Current operating lease liabilities   173,101   127,032  
Accounts payable and accrued expenses   410,552   252,389  
Current liabilities held for sale   -   40,576  
Other current liabilities   50,833   25,174  
Total current liabilities   1,120,656   549,224  
Long-term obligations, excluding current installments   1,383,725   466,944  
Non-current operating lease liabilities   557,071   402,276  
Non-current liabilities held for sale   -   8,779  
Other non-current liabilities   88,888   35,522  
Total liabilities   3,150,340   1,462,745  
           
Stockholders equity:          
Common stock, $0.01 par value per share, 180,000,000 and 180,000,000 shares authorized, 40,296,688 and 40,092,260 shares issued and outstanding at December 25, 2021 and December 26, 2020, respectively   403   401  
Preferred stock, $0.01 par value per share, 4,800,000 and 20,000,000 shares authorized, 4,541,125 and 1,250,000 shares issued and outstanding at December 25, 2021 and December 26, 2020, respectively   45   13  
Additional paid-in capital   475,396   382,383  
Accumulated other comprehensive loss, net of taxes   -   (1,399 )
Retained earnings   286,987   3,769  
Total equity   762,831   385,167  
Total liabilities and equity   $                3,913,171   $                1,847,912  


 
FRANCHISE GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
 
    Three Months Ended     Twelve Months Ended
 
(In thousands, except share count and per share data)   December 25, 2021     December 25, 2021     December 26, 2020  
    (Unaudited)     (Unaudited)        
Revenues:                  
Product   $ 840,278     $ 3,012,471     $ 1,899,662  
Service and other   94,445     209,103     65,798  
Rental   7,553     33,630     64,267  
Total revenues   942,276     3,255,204     2,029,727  
Operating expenses:                  
Cost of revenue:                  
Product   545,068     1,892,741     1,136,054  
Service and other   6,430     16,506     2,149  
Rental   2,683     11,552     21,905  
Total cost of revenue   554,181     1,920,799     1,160,108  
Selling, general, and administrative expenses   327,638     1,108,054     817,108  
Total operating expenses   881,819     3,028,853     1,977,216  
Income from operations   60,457     226,351     52,511  
Other income (expense):                  
Bargain purchase gain   132,559     132,559     -  
Other   (17,552 )   (67,368 )   (5,294 )
Interest expense, net   (41,620 )   (133,114 )   (96,774 )
Income (loss) from continuing operations before income taxes   133,844     158,428     (49,557 )
Income tax benefit   (17,938 )   (33,538 )   (60,501 )
Income from continuing operations   151,782     191,966     10,944  
Income from discontinued operations, net of tax   (4,613 )   171,822     16,210  
Net Income   147,169     363,788     27,154  
Less: Net (income) attributable to non-controlling interest   -     -     (2,090 )
Net income attributable to Franchise Group, Inc.   $ 147,169     $ 363,788     $ 25,064  
    -              
Amounts attributable to Franchise Group, Inc.:   -              
Net income from continuing operations   $ 151,782     $ 191,966     $ 20,645  
Net income from discontinued operations   (4,613 )   171,822     4,419  
Net income attributable to Franchise Group, Inc.   $ 147,169     $ 363,788     $ 25,064  
                   
Basic earnings per share:                  
Continuing operations   $ 3.71     $ 4.56     $ 0.57  
Discontinued operations   (0.11 )   4.27     0.13  
Total basic earnings per share   $ 3.60     $ 8.83     $ 0.70  
                   
Diluted earnings per share:                  
Continuing operations   $ 3.64     $ 4.48     $ 0.57  
Discontinued operations   (0.11 )   4.19     0.13  
Total diluted earnings per share   $ 3.53     $ 8.67     $ 0.70  
                   
Weighted-average shares outstanding:                  
Basic   40,284,349     40,199,681     34,531,362  
Diluted   41,081,519     40,964,182     34,971,935  


 
 FRANCHISE GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
    Twelve Months Ended     Twelve Months Ended  
(In thousands)   December 25, 2021     December 26, 2020  
    (Unaudited)     (Unaudited)  
Operating Activities            
Net income   $ 363,788     $ 27,154  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:            
Provision for doubtful accounts   8,878     5,930  
Depreciation, amortization and impairment charges   72,765     62,543  
Amortization of deferred financing costs   56,054     30,635  
Stock-based compensation expense   13,696     9,484  
Gain on bargain purchases and sales of Company stores   (137,747 )   (4,133 )
Deferred tax expense   709     1,092  
Prepayment penalty for early debt extinguishment   36,726     -  
Gain on divestiture of Liberty Tax   (188,092 )   -  
Change in fair value of investment   31,773     -  
Other, net   1,749     85  
Change in            
Accounts, notes, and interest receivable   (18,543 )   (19,811 )
Income taxes   (20,191 )   (8,059 )
Other assets   12,939     (5,573 )
Accounts payable and accrued expenses   (12,215 )   23,927  
Inventory   (121,393 )   97,681  
Deferred revenue   5,073     20,537  
Net cash provided by operating activities   105,969     241,492  
Investing Activities            
Issuance of operating loans to franchisees   (17,749 )   (34,136 )
Payments received on operating loans to franchisees   23,103     50,291  
Purchases of Company-owned stores   (1,087 )   (6,587 )
Proceeds from sale of Company-owned stores   12,866     36,349  
Acquisition of business, net of cash and restricted cash acquired   (1,063,811 )   (353,423 )
Divestiture of business, net of cash and restricted cash acquired   179,471     -  
Capital expenditures   (46,958 )   (34,931 )
Proceeds from sale of property, plant, and equipment   6     1,224  
Net cash used in investing activities   (914,159 )   (341,213 )
Financing Activities            
Proceeds from the exercise of stock options   665     520  
Repurchase of common stock and tax impact of stock compensation   -     -  
Dividends paid   (67,234 )   (29,350 )
Non-controlling interest distribution   -     (4,716 )
Repayment of other long-term obligations   (1,176,581 )   (505,486 )
Borrowings under revolving credit facility   26,724     184,665  
Repayments under revolving credit facility   (84,874 )   (235,614 )
Issuance of common stock   -     198,004  
Issuance of preferred stock   79,542     29,482  
Tender offer   -     -  
Payment for debt issue costs   (65,926 )   (16,865 )
Prepayment penalty for early debt extinguishment   (36,726 )   -  
Issuance of debt   2,275,000     586,000  
Cash paid for taxes on exercises/vesting of stock-based compensation   (856 )   (487 )
Net cash provided by financing activities   949,734     206,153  
Effect of exchange rate changes on cash, net   36     (76 )
Net increase in cash equivalents and restricted cash   141,580     106,356  
Cash, cash equivalents and restricted cash at beginning of year   151,502     45,146  
Cash, cash equivalents and restricted cash at end of year   $ 293,082     $ 151,502  
Supplemental Cash Flow Disclosure            
Cash paid for taxes, net of refunds   $ 42,154     $ 1,858  
Cash paid for interest   91,623     49,825  
Accrued capital expenditures   3,445     5,025  
Non-cash proceeds from divestiture of Liberty Tax   74,073     -  
Deferred financing costs from issuance of common stock   -     31,013  
Capital expenditures funded by finance lease liabilities   756     -  
Tax receivable agreement included in other long-term liabilities   504     16,775  


Non-GAAP Financial Measures and Key Metrics

Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS are financial measures that are not prepared in accordance with GAAP. Management believes the presentation of these measures is useful to investors as supplemental measures in evaluating the aggregate performance of the Company’s operating businesses and in comparing its results from period to period because they exclude items that the Company does not believe are reflective of its core or ongoing operating results. These measures are used by management to evaluate the Company’s performance and make resource allocation decisions each period. These metrics are also used in the determination of executive management's compensation. Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS should not be considered in isolation or as a substitute for net income or other income statement information prepared in accordance with GAAP and our presentation of these non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Management defines and calculates Adjusted EBITDA as net income (loss) from continuing operations before interest, income taxes, depreciation and amortization adjusted for certain non-core or non-operational items related to executive severance and related costs, stock-based compensation, shareholder litigation costs, corporate governance costs, accrued judgments and settlements, net of estimated revenue, store closures, rebranding costs, acquisition costs, inventory fair value step up amortization and prepayment penalty on early debt repayment. Adjusted EBITDA is a financial measure that is not prepared in accordance with GAAP.

Management defines and calculates Non-GAAP Net Income and Non-GAAP EPS as net income (loss) and net income (loss) per diluted share from continuing operations adjusted for non-core or non-operational items related to executive severance and related costs, stock-based compensation, non-cash executive compensation expense, shareholder litigation costs, prepayment penalties on early debt repayment, non-cash amortization of debt issuance costs, store closures, rebranding costs, acquisition costs, inventory fair value step up amortization, and amortization of acquired intangible assets. Although amortization of acquired intangible assets is excluded from these non-GAAP measures, it is important for investors to understand that such intangible assets support revenue generation. Management excludes amortization of intangible assets because these are non-cash amounts for which the amount and frequency are significantly impacted by the timing and size of our acquisitions, which vary from period to periods and across companies. The tax effect on the related non-GAAP adjustments was calculated based on an estimated annual non-GAAP effective tax rate of 27%

Reconciliation of Adjusted EBITDA
Below are reconciliations of Net Income/(Loss) from continuing operations to Adjusted EBITDA for the three and twelve months ended December 25, 2021.

    For the Three Months Ended December 25, 2021
($ In thousands)   Buddy's   Pet Supplies Plus     American Freight     Vitamin Shoppe   Sylvan     Badcock     Corporate     Total  
Net income (loss) from continuing operations   $                2,291   $              11,812     $                2,018     $                6,766   $                 (786 )   $            138,494     $              (8,813 )   $            151,782  
Add back:                                            
Interest expense   763   4,787     8,380     6,409   3     16,223     5,055     41,620  
Income tax expense (benefit)   -   (1 )   -     -   68     -     (18,005 )   (17,938 )
Depreciation and amortization charges   753   6,488     2,436     9,895   1,823     1,285     -     22,680  
Total Adjustments   1,516   11,274     10,816     16,304   1,894     17,508     (12,950 )   46,362  
EBITDA                    3,807                 23,086                   12,834                   23,070                    1,108                 156,002                  (21,763 )               198,144  
Adjustments to EBITDA                                            
Executive severance and related costs   -   283     -     -   -     -     -     283  
Stock based compensation   70   600     (403 )   -   -     -     4,026     4,293  
Litigation costs and settlements   -   -     -     -   -     -     (1,133 )   (1,133 )
Corporate compliance costs   -   -     -     -   -     -     1,387     1,387  
Store closures   -   237     378     214   -     -     1,368     2,197  
Securitized receivables, net   -   -     -     -   -     (19,919 )   -     (19,919 )
Prepayment penalty on early debt repayment   -   -     -     -   -     -     -     -  
Right-of-use asset impairment   -   -     (42 )   -   -     -     -     (42 )
Integration costs   -   (97 )   8,282     -   34     131     (237 )   8,113  
Divestiture costs   -   -     -     -   -     -     117     117  
Acquisition costs   -   976     543     -   1,792     5,900     (2,179 )   7,032  
Loss on investment in equity securities   -   -     -     -   -     -     18,684     18,684  
Acquisition bargain purchase gain   -   -     (516 )   -   -     (132,043 )   -     (132,559 )
Total Adjustments to EBITDA   70   1,999     8,242     214   1,826     (145,931 )   22,033     (111,547 )
Adjusted EBITDA   $               3,877   $             25,085     $             21,076     $             23,284   $               2,934     $             10,071     $                   270     $             86,597  


     
    For the Twelve Months Ended December 25, 2021
($ In thousands)   Buddy's     Pet Supplies Plus   American Freight     Vitamin Shoppe     Sylvan     Badcock     Corporate     Total  
Net income (loss) from continuing operations   $ 12,930     $ 25,489   $ 29,555     $ 80,641     $ (786 )   $ 138,494     $ (94,357 )   $ 191,966  
Add back:                                              
Interest expense   3,755     16,165   37,502     23,432     3     16,223     36,034     133,114  
Income tax expense (benefit)   -     -   -     (68 )   68     -     (33,538 )   (33,538 )
Depreciation and amortization charges   3,398     20,261   9,349     32,969     1,823     1,285     1     69,086  
Total Adjustments   7,153     36,426   46,851     56,333     1,894     17,508     2,497     168,662  
EBITDA                 20,083                   61,915                 76,406                 136,974                      1,108                 156,002                  (91,860 )               360,628  
Adjustments to EBITDA                                              
Executive severance and related costs   -     302   -     -     -     -     -     302  
Stock based compensation   278     600   916     -     -     -     13,162     14,956  
Litigation costs and settlements   -     -   (295 )   -     -     -     (835 )   (1,130 )
Corporate compliance costs   -     -   -     -     -     -     2,172     2,172  
Store closures   -     248   600     214     -     -     1,367     2,429  
Securitized receivables, net   -     -   -     -     -     (19,919 )   -     (19,919 )
Prepayment penalty on early debt repayment   -     -   -     -     -     -     36,726     36,726  
Right-of-use asset impairment   -     -   2,948     -     -     -     -     2,948  
Integration costs   -     423   15,732     -     34     131     335     16,655  
Divestiture costs   (2,481 )   -   -     -     -     -     2,996     515  
Acquisition costs   -     14,262   876     -     1,792     5,900     48     22,878  
Loss on investment in equity securities   -     -   -     -     -     -     31,774     31,773  
Acquisition bargain purchase gain   -     -   (516 )   -     -     (132,043 )   -     (132,559 )
Total Adjustments to EBITDA   (2,203 )   15,835   20,261     214     1,826     (145,931 )   87,745     (22,254 )
Adjusted EBITDA   $ 17,880     $ 77,750   $ 96,667     $ 137,188     $ 2,934     $ 10,071     $ (4,115 )   $ 338,374  
                                                               

Reconciliation of Non-GAAP Net Income and EPS
Below are reconciliations of Net Income/(Loss) from continuing operations to Non-GAAP Net Income and Net Income/(Loss) from continuing operations per diluted share to Non-GAAP EPS for the three and twelve months ended December 25, 2021.

             
    For the Three Months Ended      For the Twelve Months Ended  
($ In thousands except share count and per share data)   December 25, 2021     December 25, 2021  
                         
Net income (loss) from continuing operations / Net income (loss) from continuing operations per diluted share   $             151,782     $                   3.69     $             191,966     $                   4.69  
Less: Preferred dividend declared   (2,128 )   (0.05 )   (8,515 )   (0.21 )
Adjusted Net Income available to Common Stockholder   149,654     3.64     183,451     4.48  
Add back:                        
Executive severance and related costs   283     0.01     302     0.01  
Stock based compensation   4,293     0.11     14,956     0.37  
Litigation costs and settlements   (1,133 )   (0.03 )   (1,130 )   (0.03 )
Corporate compliance costs   1,387     0.03     2,172     0.05  
Store closures   2,197     0.05     2,429     0.06  
Securitized receivables, net   (19,919 )   (0.48 )   (19,919 )   (0.49 )
Prepayment penalty on early debt repayment   -     -     36,726     0.90  
Right-of-use asset impairment   (42 )   -     2,948     0.07  
Integration costs   8,113     0.20     16,655     0.41  
Divestiture costs   117     -     515     0.01  
Acquisition costs   7,032     0.17     22,878     0.56  
Loss on investment in equity securities   18,684     0.45     31,774     0.78  
Acquisition bargain purchase gain   (132,559 )   (3.23 )   (132,559 )   (3.24 )
Adjustments to EBITDA   (111,547 )   (2.72 )   (22,253 )   (0.54 )
Non-cash amortization of debt issuance costs   12,962     0.30     48,552     1.18  
Amortization of acquisition-related intangibles   4,053     0.10     9,953     0.24  
Tax impact   (5,096 )   (0.11 )   (22,621 )   (0.55 )
Valuation Allowance Tax Benefit / Timing   (18,270 )   (0.44 )   (33,789 )   (0.82 )
Impact of diluted share count assuming non-GAAP net income   -     -     -     -  
Total Adjustments to Net income (loss) from continuing operations   (117,898 )   (2.87 )   (20,157 )   (0.49 )
Non-GAAP Net Income from continuing operations / Non-GAAP diluted EPS from continuing operations   $              31,757     $                  0.77     $           163,297     $                  3.99  
Basic weighted average shares         40,199,681           40,199,681  
Non-GAAP diluted weighted average shares outstanding         41,081,519           40,964,182  
                         

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results and are not statements of historical fact. Such statements may include statements regarding the Company’s results of operation and financial condition, its performance during the COVID-19 pandemic, its outlook for fiscal 2022, the expected timing of the completion of the sale-leaseback of Badcock’s real estate portfolio and the use of proceeds therefrom and its acquisition strategy. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company or its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, many of which are beyond the control of the Company. The Company refers you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Form 10-K for the fiscal year ended December 25, 2021, and comparable sections of the Company’s Quarterly Reports on Form 10-Q and other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its business or operations. Readers are cautioned not to rely on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Andrew F. Kaminsky
EVP & Chief Administrative Officer
Franchise Group, Inc.
akaminsky@franchisegrp.com
(914) 939-5161


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Source: Franchise Group, Inc.