DALLAS, April 22 /PRNewswire-FirstCall/ -- Brinker International,
Inc. (NYSE:EAT) announced fiscal 2008 third quarter earnings per
diluted share from continuing operations decreased to $0.17 from
$0.37 in the prior year. Before special items, earnings per diluted
share from continuing operations decreased to $0.33 from $0.37 in
the prior year (reconciliation included in Table 3). During the
first quarter of fiscal 2008, the company began presenting Romano's
Macaroni Grill as discontinued operations in its financial
statements due to management's intent to sell the brand. Before
special items, earnings per diluted share from discontinued
operations increased from $0.07 in the third quarter of fiscal 2007
to $0.11 in the current quarter primarily driven by a decrease in
depreciation expense due to the classification of assets held for
sale beginning in fiscal 2008 (reconciliation included in Table 4).
All amounts presented in this release are related to continuing
operations unless otherwise stated. During the third quarter,
Brinker experienced encouraging trends in comparable restaurant
sales which grew 1.1 percent. "We have made progress with top-line
growth during the past quarter," stated Doug Brooks, Chairman and
CEO. "Aligning our company on the areas of focus will allow Brinker
to grow its business within existing restaurants." Quarterly
Revenues Brinker reported revenues from continuing operations for
the 13-week period of $907.7 million, a decrease of 3.9 percent
compared with $944.0 million reported for the same period of fiscal
2007. The company experienced a 1.1 percent increase in comparable
restaurant sales (see Table 1) in the third quarter of fiscal 2008.
However, this increase was more than offset by a net decline in
capacity of 6.7 percent due to sales of restaurants to franchisees
and restaurant closures outpacing growth in company-owned
restaurants during the past year. In contrast, royalty revenues
from franchisees increased approximately 75 percent to $15.7
million from $9.0 million in the prior year. Table 1: Q3 comparable
restaurant sales Q3 08 and Q3 07, company and three reported
brands; percentage Q3 08 Q3 07 Q3 08 Comparable Comparable Pricing
Q3 08 Sales Sales Impact Mix-Shift Brinker International 1.1%
(4.4%) 3.1% 0.3% Chili's 1.6% (4.4%) 3.2% 0.9% On The Border (1.8%)
(5.7%) 2.8% (1.0%) Maggiano's (0.4%) (3.0%) 2.9% (2.0%) Quarterly
Operating Performance Cost of sales, as a percent of revenues,
increased from 28.4 percent in the prior year to 28.9 percent in
the third quarter of fiscal 2008. During the quarter, cost of sales
was negatively impacted by unfavorable commodity prices, primarily
beef, ribs, chicken and dairy products, and unfavorable product mix
shifts related to new menu items, partially offset by favorable
menu price changes and increased revenues from franchisees.
Restaurant expenses, as a percent of revenues, increased to 56.1
percent from 55.5 percent in the prior year primarily driven by
increased labor and restaurant supply costs, partially offset by
increased revenues from franchisees and lower pre-opening expenses.
Depreciation and amortization increased $1.3 million primarily
driven by depreciation expense related to the addition of new
restaurants and remodel investments. This increase was partially
offset by the sale of 172 company-owned restaurants to franchisees
over the past 12 months as well as an increase in fully depreciated
assets and restaurant closures. Compared to the prior year, general
and administrative expense decreased $2.5 million for the quarter
primarily due to reduced salary and team member related expenses
resulting from the company's efforts to evolve its corporate
structure to align with the increased mix of franchise restaurants
as well as the expected decline in future company-owned restaurant
development. Other gains and charges increased from a gain of $1.0
million a year ago primarily resulting from the sale of a
company-owned restaurant to a charge of $26.3 million in the third
quarter of fiscal 2008. During the current quarter, the company
evaluated its existing portfolio of assets for strategic fit as
well as the infrastructure needed to support its evolving business
model. As a result, management made the decision to close or
decline lease renewals for 21 restaurants and further refined its
planned reduction in domestic restaurant development to
approximately 70 in fiscal 2008, approximately 15 in fiscal 2009
and even fewer in fiscal 2010. The charges related to these
decisions are primarily comprised of asset impairments and
write-offs, lease termination fees and severance costs. Details of
the current quarter charge are outlined below: Table 2: Detail of
Other Gains and Charges Q3 08; $ millions and $ per diluted share
after-tax $ $ $ Before tax After tax EPS Item Development-related
costs 12.1 7.6 0.07 Restaurant closures 9.0 5.6 0.06 Severance 5.2
3.3 0.03 Total Other Gains and Charges 26.3 16.5 0.16 Interest
expense increased $4.4 million primarily due to additional debt
outstanding of $400 million borrowed under a three-year term loan
used primarily to fund share repurchases in fiscal 2007 and for
general corporate purposes. The effective income tax rate, before
special items, decreased to 28.1 percent for the current quarter as
compared to 29.7 percent for the same quarter last year. The
decrease in the tax rate was primarily due to an increase in
federal tax credits, leverage from FICA tip credits and a decrease
in incentive stock option expense. The company incurred a loss from
discontinued operations of $56.0 million during the third quarter
of fiscal 2008 as compared to income from discontinued operations
of $7.5 million in the prior year. The decrease in income is due to
charges of $67.1 million, net of tax, primarily related to the
write-down of Macaroni Grill assets held for sale to estimated fair
value less costs to sell as well as asset write-offs and costs
resulting from the company's decision to close 25 restaurants in
connection with its efforts to sell the brand. Income from
discontinued operations, before special items, increased to $11.1
million in the current quarter from $8.9 million a year ago
(reconciliation included in Table 4). This increase was primarily
driven by a decrease in depreciation expense due to the
classification of assets held for sale beginning in fiscal 2008,
partially offset by a 4.4 percent decline in comparable restaurant
sales at Macaroni Grill as well as increased operating costs. Cash
Flow and Capital Allocation Cash flow from operations for the first
nine months of fiscal 2008 decreased to approximately $255.8
million compared to $336.4 million in the prior year due to lower
adjusted earnings, reduced income taxes payable and the timing of
operational payments and receipts. Capital expenditures through the
third quarter of fiscal 2008 totaled $211.5 million, a reduction of
$76.4 million compared to the prior year, primarily due to a
decrease in new restaurants developed by the company. Total capital
expenditures for fiscal 2008 are currently estimated to be
approximately $265 million, with $150 million relating to new
restaurants. Growth in fiscal 2009 will be primarily fueled by
franchise openings of approximately 75 to 85 restaurants, while
domestic company-owned growth will slow to approximately 15
restaurants. Accordingly, fiscal 2009 capital expenditures are
expected to be approximately $185 to $190 million with $40 million
allocated to new restaurant development, $25 to $30 million
attributable to Chili's reimages, $25 to $30 million invested
primarily in kitchen technology and the remainder primarily
relating to capital expenditure maintenance programs. The company
repurchased 9.1 million common shares during the first nine months
of fiscal 2008. At the end of the quarter, approximately $60
million remained available under the company's share
authorizations. Diluted weighted average shares outstanding for the
third quarter were reduced over 18 percent to 102.4 million from
125.7 million at the end of the third quarter fiscal 2007. Special
Items Table 3: Reconciliation of income from continuing operations,
before special items Q3 08 and Q3 07; $ millions and $ per diluted
share after-tax $ EPS $ EPS Item Q3 08 Q3 08 Q3 07 Q3 07 Income
from Continuing Operations 17.2 0.17 47.1 0.37 Other (Gains) and
Charges 16.5 0.16 (0.6) 0.00 Income from Continuing Operations,
before Special Items 33.7 0.33 46.5 0.37 Table 4: Reconciliation of
income (loss) from discontinued operations, before special items Q3
08 and Q3 07; $ millions and $ per diluted share after-tax $ EPS $
EPS Item Q3 08 Q3 08 Q3 07 Q3 07 Income (Loss) from Discontinued
Operations (56.0) (0.55) 7.5 0.06 Other (Gains) and Charges 67.1
0.66 1.4 0.01 Income from Discontinued Operations, before Special
Items 11.1 0.11 8.9 0.07 Table 5: Reconciliation of net income
(loss), before special items Q3 08 and Q3 07; $ millions and $ per
diluted share after-tax $ EPS $ EPS Item Q3 08 Q3 08 Q3 07 Q3 07
Net Income (Loss) (38.8) (0.38) 54.6 0.43 Other (Gains) and Charges
83.6 0.82 0.8 0.01 Net Income, before Special Items 44.8 0.44 55.4
0.44 Web-cast Information Investors and interested parties are
invited to listen to today's conference call, as management will
provide further details of the quarter. The call will be broadcast
live on the Brinker Web site (http://www.brinker.com/) at 9 a.m.
CDT today (April 22). For those who are unable to listen to the
live broadcast, a replay of the call will be available shortly
thereafter and will remain on the Brinker Web site until the end of
the day on May 20, 2008. Forward Calendar -- Third quarter SEC Form
10-Q filing on or before May 5, 2008; and -- Fourth quarter
earnings release, before market opens, on Aug. 5, 2008. At the end
of the third quarter of fiscal 2008, Brinker International either
owned, operated, or franchised 1,868 restaurants under the names
Chili's Grill & Bar (1,439 restaurants), Romano's Macaroni
Grill (224 restaurants), On The Border Mexican Grill & Cantina
(163 restaurants), and Maggiano's Little Italy (42 restaurants).
The statements contained in this release that are not historical
facts are forward-looking statements. These forward-looking
statements involve risks and uncertainties and, consequently, could
be affected by general business and economic conditions, the impact
of competition, the impact of mergers, acquisitions, divestitures
and other strategic transactions, the seasonality of the company's
business, adverse weather conditions, future commodity prices, fuel
and utility costs and availability, terrorists acts, consumer
perception of food safety, changes in consumer taste, health
epidemics or pandemics, changes in demographic trends, availability
of employees, unfavorable publicity, the company's ability to meet
its growth plan, acts of God, governmental regulations, and
inflation. BRINKER INTERNATIONAL, INC. Consolidated Statements of
Income (In thousands, except per share amounts) (Unaudited)
Thirteen Week Thirty-Nine Week Periods Ended Periods Ended March
26, March 28, March 26, March 28, 2008 2007 2008 2007 Revenues
$907,664 $944,028 $2,670,956 $2,712,882 Operating Costs and
Expenses: Cost of sales 262,565 267,680 753,466 757,996 Restaurant
expenses 509,169 523,936 1,498,193 1,498,070 Depreciation and
amortization 39,958 38,653 117,582 119,708 General and
administrative 39,618 42,164 120,176 135,277 Other gains and
charges (a) 26,273 (966) 4,837 (2,176) Total operating costs and
877,583 871,467 2,494,254 2,508,875 expenses Operating income
30,081 72,561 176,702 204,007 Interest expense 10,800 6,446 36,191
19,297 Other, net (1,368) (995) (3,470) (2,627) Income before
provision for income taxes 20,649 67,110 143,981 187,337 Provision
for income taxes 3,417 20,011 41,987 59,176 Income from continuing
17,232 47,099 101,994 128,161 operations Income (loss) from
discontinued operations, net of taxes (b) (56,050) 7,472 (48,732)
18,241 Net income (loss) $(38,818) $54,571 $53,262 $146,402 Basic
net income (loss) per share: Income from continuing operations
$0.17 $0.39 $0.98 $1.04 Income (loss) from discontinued operations
$(0.55) $0.06 $(0.47) $0.15 Net income (loss) per share $(0.38)
$0.45 $0.51 $1.19 Diluted net income per share: Income from
continuing operations $0.17 $0.37 $0.97 $1.02 Income (loss) from
discontinued operations $(0.55) $0.06 $(0.47) $0.14 Net income
(loss) per share $(0.38) $0.43 $0.50 $1.16 Basic weighted average
shares outstanding 101,175 122,019 103,713 123,213 Diluted weighted
average shares outstanding 102,377 125,712 105,624 126,144 a)
Current year other gains and charges includes charges in the third
quarter of fiscal 2008 of $12.1 million related to asset write-offs
resulting from the company's reduced development schedule, $9.0
million related to the impairment of long-lived assets and $5.2
million of severance. During the second quarter of fiscal 2008, the
company recorded a $29.2 million gain on the sale of 76 restaurants
to a franchisee and $7.3 million of charges primarily related to
the impairment of long-lived assets. Prior year other gains and
charges primarily includes a $1.7 million gain on the sale of
company-owned restaurants in the third quarter of fiscal 2007, $2.0
million of impairment charges associated with restaurant closures
in the second quarter of fiscal 2007 and a gain on the termination
of interest rate swaps of $3.2 million in the first quarter of
fiscal 2007. b) Current year loss from discontinued operations, net
of taxes, includes other gains and charges resulting from the
expected sale of Macaroni Grill. The company recorded charges of
$67.1 million in the third quarter of fiscal 2008, primarily
related to the write-down of long-lived assets held for sale to
estimated fair value less costs to sell and asset write-offs
related to restaurant closures, $3.5 million in the second quarter
of fiscal 2008, primarily related to impairment charges and
deal-related expenses and $5.1 million in the first quarter of
fiscal 2008, primarily related to impairment charges and
stock-based compensation expense. Prior year income from
discontinued operations, net of taxes, includes other gains and
charges of $1.4 million related to lease charges associated with
restaurant closures in the third quarter of fiscal 2007 and $5.4
million related to impairment charges associated with restaurant
closures in the second quarter of fiscal 2007. As a result, income
from discontinued operations, before special items, was $11.1
million and $8.9 million for the third quarter of fiscal 2008 and
2007, respectively. Income from discontinued operations, before
special items, was $27.0 and $25.1 million, respectively, for
fiscal 2008 and 2007 year-to-date. BRINKER INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 26, June
27, 2008 2007 (Unaudited) ASSETS Current assets of continuing
operations $309,893 $249,289 Assets held for sale 218,411 423,378
Net property and equipment (a) 1,516,264 1,465,241 Total other
assets 186,335 180,113 Total assets $2,230,903 $2,318,021
LIABILITIES AND SHAREHOLDERS' EQUITY Current installments of
long-term debt $1,918 $1,761 Current liabilities of continuing
operations 534,215 519,269 Liabilities associated with assets held
for sale 16,840 23,856 Long-term debt, less current installments
910,860 826,918 Other liabilities 167,434 141,128 Total
shareholders' equity 599,636 805,089 Total liabilities and
shareholders' equity $2,230,903 $2,318,021 a) At March 26, 2008,
the company owned the land and buildings for 229 of the 1,062
company-owned restaurants (excluding Macaroni Grill). The net book
values of the land and buildings associated with these restaurants
totaled $184.8 million and $195.8 million, respectively. BRINKER
INTERNATIONAL, INC. RESTAURANT SUMMARY Third Third Total Quarter
Quarter Total Projected Restaurants Openings/ Closings/ Restaurants
Openings Dec. 26, Acquisitions Sales Mar. 26, Fiscal 2007 Fiscal
2008 Fiscal 2008 2008 2008 Company-Owned Restaurants: Chili's 865
23 7 881 59-61 Macaroni Grill 216 - 23 193 3 On The Border 137 - 4
133 7 Maggiano's 41 1 - 42 1 International(a) 6 - - 6 2 1,265 24 34
1,255 72-74 Franchise Restaurants: Chili's 395 7 1 401 35 Macaroni
Grill 17 1 - 18 6 On The Border 29 - - 29 5 International(a) 166 4
5 165 36 607 12 6 613 82 Total Restaurants: Chili's 1,260 30 8
1,282 94-96 Macaroni Grill 233 1 23 211 9 On The Border 166 - 4 162
12 Maggiano's 41 1 - 42 1 International 172 4 5 171 38 1,872 36 40
1,868 154-156 (a) At the end of third quarter fiscal year 2008,
international company owned restaurants by brand were five Chili's
and one Macaroni Grill. International franchise restaurants by
brand were 152 Chili's, 12 Macaroni Grill's and one On The Border.
DATASOURCE: Brinker International, Inc. CONTACT: Media Relations,
Stacey Sullivan, 1-800-775-7290, or Investor Relations, Marie
Perry, +1-972-770-1276 Web site: http://www.brinker.com/
Copyright
Grafico Azioni Brinker (NYSE:EAT)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Brinker (NYSE:EAT)
Storico
Da Lug 2023 a Lug 2024