El Pollo Loco used IPO proceeds to retire $100 million debt, ends Q2 with cash of $27 million

By Lisa Kerner

Charlotte, N.C., Sept. 4 – El Pollo Loco Holdings, Inc. used the $112.8 million of net proceeds from its IPO in July to repay in full its $100 million second-lien term loan, said chief financial officer Larry Roberts during the company’s second-quarter earnings call on Thursday.

The company ended the quarter on June 25 with cash and cash equivalents of about $27 million, outstanding debt of $288 million and total current debt of about $180 million, according to Roberts.

Cash and cash equivalents at Dec. 25 totaled about $17 million, while outstanding debt was roughly flat at $289 million, according to the earnings news release.

El Pollo Loco expects to fund its operations using its cash and borrowings under its credit facility “for the foreseeable future,” Roberts said.

Financial highlights

Second-quarter total revenue was up 6.3% year over year to about $87 million.

The company reported net income of $6.6 million.

Interest expense decreased by 4.1% year over year, said Roberts.

Adjusted EBITDA increased 7.6% from the prior-year period to$16.6 million.

El Pollo Loco is a Costa Mesa, Calif.-based restaurant operator.

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