Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 80

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 80
---
ancy expenses and General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss). Non-GAAP Financial Measure Reconciliations Adjusted EBITDA and Adjusted EBITDA margin - The following table reconciles Net income (Loss and Net income (loss margin, the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted EBITDA margin for the periods indicated: 50

FISCAL YEAR (in thousands) 2024 2023 2022 Income from operations $ 38,907 $ 41,267 $ 16,913 Less: Franchise revenues (11,555) (14,459) (10,981) Add: General and administrative expenses 113,270 103,121 84,959 Depreciation and amortization 57,715 41,223 34,230 Transaction expenses (income), net (1) 2,587 3,147 2,513 Impairments and loss on disposal of assets (2) 525 1,359 920 Costs in connection with natural disasters (3) 312 — 382 Restaurant level operating profit $ 201,761 $ 175,658 $ 128,936 Restaurant sales $ 1,004,355 $ 877,092 $ 719,181 Income from operations margin 3.9 % 4.7 % 2.4 % Restaurant level operating profit margin 20.1 % 20.0 % 17.9 % Additional information Deferred rent expense (income) (4) $ 1,119 $ 1,891 $ 2,219 _____________________________ (1) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs, costs related to restaurant closures, gains or losses associated with lease or contract terminations and revaluations of contingent consideration liability. (2) Represents impairment charges and costs related to the disposal of assets due to retirements, replacements, restaurant closures and natural disasters. (3) Represents costs incurred in connection with hurricane damage. The costs include inventory spoilage and labor costs, which were recorded in Food and beverage costs and Labor and other related expenses, respectively, on the Consolidated Statements of Operations and Comprehensive Income (Loss). (4) Represents the non-cash portion of straight-line rent expense recorded within Occupancy expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss). Liquidity and Capital Resources Liquidity As of December 29, 2024, we