What specific disclaimers or qualifications are associated with the financial data presented for Del Taco in this section?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
---|---|--------------|-----------------| | Total revenue | | $ 1,686,160 | $ 1,665,660 | | Net earnings | | $ 118,000 | $ 133,485 |
The unaudited pro forma financial information for all periods presented includes the business combination accounting effects resulting from this acquisition, mainly including adjustments to reflect additional amortization expense from acquired intangibles, incremental depreciation expense from the fair value property and equipment, elimination of historical interest expense associated with both Del Taco's and the Company's historical indebtedness, additional interest expense associated with the new Del Taco revolving credit facility and the Company's new borrowings as part of the refinancing to fund the acquisition, adjusted rent expense reflecting the acquired right-of-use assets and liabilities to their estimated acquisition-date values based upon valuation of related lease intangibles and remaining payments, as well as the fair value adjustments made to leasehold improvements, certain material non-recurring adjustments and the tax-related effects as though Del Taco was combined as of the beginning of fiscal 2021. The unaudited pro forma financial information as presented above is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2021, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs i
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 FDD, the unaudited pro forma financial information includes several adjustments related to the acquisition of Del Taco by Jack in the Box Inc. These adjustments account for the business combination's effects, such as amortization of acquired intangibles, depreciation of property and equipment, and the elimination or addition of interest expenses tied to historical debt and new credit facilities. Rent expenses were also adjusted to reflect the acquired right-of-use assets and liabilities. These adjustments are presented as if Del Taco was combined with the Company at the beginning of fiscal year 2021.
The FDD stipulates that this pro forma financial information is for informational purposes only and might not accurately reflect the results of operations if the acquisition had occurred at the beginning of fiscal 2021. It also cautions that this information may not indicate future trends. Several factors contribute to this disclaimer, including differences in assumptions used to prepare the pro forma information, potential cost savings from operating efficiencies, possible synergies, and the impact of incremental costs incurred while integrating the two brands.
For the period subsequent to the acquisition included in 2022, Del Taco had total revenues of $316.9 million and net earnings of $6.5 million. This data provides a snapshot of Del Taco's performance after being acquired, but it is still subject to the previously mentioned qualifications and disclaimers regarding the pro forma nature of the financial information.