Brinker International’s total revenues in the fourth quarter of fiscal 2017 decreased 8.1 percent to $810.7 millioncompared to the fourth quarter of fiscal 2016
Brinker International, Inc. (NYSE: EAT) last week announced results for the fiscal fourth quarter and year ended June 28, 2017.
Highlights include the following:
“Our ability to again report adjusted earnings above expectations is a testament to our team’s ability to operate restaurants and supporting functions in a manner that delivers bottom line results,” said Wyman Roberts, chief executive officer and president. “That being said, we are focusing our efforts on improving traffic at Chili’s through a quality food-driven experience.”
1Prior year amounts are revised due to the correction of an immaterial error. Refer to disclosures in tables 6 and 7 in this press release for further information.
2 Amounts are calculated based on comparable 13 weeks in each fiscal quarter.
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Table 1: Q4 and FY comparable restaurant sales1 |
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Company-owned, reported brands and franchise; percentage |
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Q4 17 |
Q4 16 |
FY 17 |
FY 16 |
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|
Brinker International |
(1.8) |
(1.8) |
(2.1) |
(2.4) |
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Chili’s Company-Owned |
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|
Comparable Restaurant Sales |
(2.2) |
(1.8) |
(2.3) |
(2.6) |
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|
Pricing Impact |
2.9 |
1.0 |
1.8 |
1.0 |
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|
Mix-Shift2 |
1.4 |
1.3 |
1.7 |
0.1 |
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|
Traffic |
(6.5) |
(4.1) |
(5.8) |
(3.7) |
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|
Maggiano’s |
||||||||||||
|
Comparable Restaurant Sales |
0.5 |
(1.7) |
(0.6) |
(1.3) |
||||||||
|
Pricing Impact |
1.0 |
1.8 |
2.1 |
1.9 |
||||||||
|
Mix-Shift2 |
1.6 |
(2.5) |
0.3 |
(1.6) |
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|
Traffic |
(2.1) |
(1.0) |
(3.0) |
(1.6) |
||||||||
|
Chili’s Franchise3 |
(1.7) |
(3.4) |
(2.1) |
(0.7) |
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|
U.S. Comparable Restaurant Sales |
(0.2) |
(2.1) |
(1.1) |
(1.2) |
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|
International Comparable Restaurant Sales |
(4.2) |
(5.5) |
(3.7) |
0.2 |
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|
Chili’s Domestic4 |
(1.7) |
(1.8) |
(2.0) |
(2.2) |
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System-wide5 |
(1.8) |
(2.2) |
(2.1) |
(1.9) |
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1 |
Comparable restaurant sales includes all restaurants that have been in operation for more than 18 months. Amounts are calculated based on comparable 13 weeks in each fiscal quarter and 52 weeks in each fiscal year. |
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2 |
Mix shift is calculated as the year-over-year percentage change in company sales resulting from the change in menu items ordered by guests. |
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3 |
Revenues generated by franchisees are not included in revenues on the consolidated statements of comprehensive income; however, we generate royalty revenue and advertising fees based on franchisee revenues, where applicable. We believe including franchise comparable restaurant sales provides investors information regarding brand performance that is relevant to current operations and may impact future restaurant development. |
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4 |
Chili’s Domestic comparable restaurant sales percentages are derived from sales generated by company-owned and franchise operated Chili’s restaurants in the United States. |
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5 |
System-wide comparable restaurant sales are derived from sales generated by company-owned Chili’s and Maggiano’s restaurants in addition to the sales generated at franchise-operated Chili’s restaurants. |
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Quarterly Operating Performance
CHILI’S fourth quarter company sales decreased 8.6 percent to $682.9 million from $747.3 million in the prior year primarily due to one less operating week in fiscal 2017 and a decline in comparable restaurant sales. As compared to the prior year, Chili’s restaurant operating margin1 declined. Restaurant expenses, as a percent of company sales, increased due to sales deleverage, higher advertising and marketing related expenses and increased workers’ compensation insurance expenses. Restaurant labor, as a percent of company sales, increased slightly compared to the prior year due to sales deleverage and higher wage rates, partially offset by lower manager bonuses. Cost of sales, as a percent of company sales, decreased due to increased menu pricing and favorable commodity pricing primarily related to beef and poultry, partially offset by unfavorable commodity pricing primarily related to avocados.
MAGGIANO’S fourth quarter company sales decreased 4.8 percent to $102.9 million from $108.1 million in the prior year primarily due to one less operating week in fiscal 2017, partially offset by an increase in comparable restaurant sales and restaurant capacity. As compared to the prior year, Maggiano’s restaurant operating margin1 declined. Restaurant expenses, as a percent of company sales, increased primarily due to sales deleverage and higher advertising and workers’ compensation insurance expenses. Restaurant labor, as a percent of company sales, was flat compared to the prior year. Cost of sales, as a percent of company sales, was negatively impacted by unfavorable menu item mix, partially offset by increased menu pricing.
1Restaurant operating margin is defined as Company sales less Cost of sales, Restaurant labor and Restaurant expenses and excludes Depreciation and amortization expenses. (See non-GAAP reconciliation below)
FRANCHISE AND OTHER revenues decreased 5.7 percent to $24.8 million for the fourth quarter of fiscal 2017 compared to $26.3 million in the prior year fourth quarter primarily due to lower digital entertainment revenue from one less operating week and a slight decrease in royalty income from franchisees.
Other
Depreciation and amortization expense decreased $0.2 million for the quarter compared to the fourth quarter of fiscal 2016 primarily due to an increase in fully-depreciated assets and restaurant closures, partially offset by depreciation on asset replacements and new restaurant openings.
General and administrative expense decreased $1.6 million for the quarter compared to the fourth quarter of fiscal 2016 primarily due to one less operating week and lower payroll and stock-based compensation expenses.
On a GAAP basis, the effective income tax rate decreased to 25.2 percent in the current quarter from 31.8 percent in the fourth quarter of fiscal 2016. Excluding the impact of special items, the effective income tax rate decreased to 27.8 percent in the current quarter compared to 32.3 percent in the fourth quarter of fiscal 2016. The decline in profit in the current quarter compared to the fourth quarter of fiscal 2016 coupled with no significant change in realized tax credits resulted in a decrease in both the GAAP basis effective tax rate and the effective tax rate excluding special items. The decline in the GAAP basis effective tax rate in the current quarter was partially offset by the impact of lower restaurant impairment and closure charges compared to the fourth quarter of fiscal 2016.
Immaterial Correction of Prior Period Financial Statements
In connection with the preparation of the consolidated financial statements for the year ended June 28, 2017, the Company discovered immaterial errors in prior years relating to the accuracy of the deferred income tax liability, primarily related to property and equipment. While the Company has concluded that the impact of these errors on the Company’s previously-issued consolidated financial statements was not material, the Company is revising its previously-reported consolidated financial statements for the fiscal years ended June 29, 2016 and June 24, 2015. The revisions include a net increase in the provision for income taxes of $0.1 million and $2.0 million for fiscal 2016 and 2015, respectively. These revisions resulted in no change to earnings per diluted share for fiscal 2016 and a $0.03 decrease for fiscal 2015. Please refer to tables 6 and 7 in this press release for further information relating to these revisions to prior periods. The cumulative effect of the changes to retained earnings at the beginning of fiscal 2016, the earliest date presented in the consolidated financial statements for the year ended June 28, 2017, was a reduction of $12.4 million.
Fiscal 2018 Outlook
The company estimates earnings per diluted share, excluding special items, in the range of $3.25 to $3.35. We are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding US GAAP measures. When these items are reported in fiscal 2018, reconciliations to the appropriate US GAAP measures will be provided. The non-GAAP measures included as a supplement to our estimated earnings per diluted share range are adjusted earnings per diluted share, restaurant operating margin, effective income tax rate excluding special items, free cash flow, and EBITDA.
Estimated earnings per diluted share are based on the following expectations:
The company believes providing estimated fiscal 2018 earnings per diluted share guidance provides investors the appropriate insight into the company’s ongoing operating performance.
Guidance Policy
Brinker provides annual guidance as it relates to comparable restaurant sales, earnings per diluted share, excluding special items, and other key line items in the statements of comprehensive income and will only provide updates if there is a material change versus the original guidance. We do not provide annual guidance as it relates to US GAAP earnings per diluted share as we are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort.
Non-GAAP Measures
Brinker management uses certain non-GAAP measures in analyzing operating performance and believes that the presentation of these measures in this release provides investors with information that is beneficial to gaining an understanding of the company’s operating results. Non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in the tables below.
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Table 2: Reconciliation of net income excluding special items |
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Q4 17 and Q4 16; $ millions and $ per diluted share |
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Brinker believes excluding special items from its financial results provides investors with a clearer perspective of the company’s ongoing operating performance and a more relevant comparison to prior period results. |
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Q4 17 |
EPS Q4 17 |
Q4 161 |
EPS Q4 161 |
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|
Net Income |
50.6 |
1.02 |
62.2 |
1.10 |
||||||||
|
Special items2 |
7.2 |
0.14 |
11.7 |
0.21 |
||||||||
|
Income tax effect related to special items |
(2.6) |
(0.05) |
(4.4) |
(0.07) |
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Special items, net of taxes |
4.6 |
0.09 |
7.3 |
0.14 |
||||||||
|
Adjustment for tax items3 |
(1.1) |
(0.02) |
0.2 |
— |
||||||||
|
Net Income excluding special items |
54.1 |
1.09 |
69.7 |
1.24 |
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Table 3: Reconciliation of net income excluding special items |
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FY 17 and FY 16; $ millions and $ per diluted share |
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FY 17 |
EPS FY 17 |
FY 161 |
EPS FY 161 |
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|
Net Income |
$ |
150.8 |
$ |
2.94 |
$ |
200.6 |
$ |
3.42 |
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|
Special items2 |
22.7 |
0.44 |
17.2 |
0.29 |
||||||||||||
|
Income tax effect related to special items |
(8.4) |
(0.16) |
(6.5) |
(0.11) |
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Special items, net of taxes |
14.3 |
0.28 |
10.7 |
0.18 |
||||||||||||
|
Adjustment for tax items3 |
(1.1) |
(0.02) |
(3.2) |
(0.05) |
||||||||||||
|
Net Income excluding special items |
$ |
164.0 |
$ |
3.20 |
$ |
208.1 |
$ |
3.55 |
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1 |
Prior-year amounts are revised due to the correction of an immaterial error. Refer to disclosures in tables 6 and 7 in this press release for further information. |
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2 |
See footnote “b” to the consolidated statements of comprehensive income for additional details on the composition of these amounts. |
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3 |
Amounts resulting from the favorable resolution of liabilities established for uncertain tax positions. |
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Table 4: Reconciliation of restaurant operating margin |
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Q4 17 and Q4 16; $ millions |
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Restaurant operating margin is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to operating income as an indicator of financial performance. Restaurant operating margin is widely regarded in the industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations. We define restaurant operating margin as Company sales less Company restaurant expenses, including Cost of sales, Restaurant labor and Restaurant expenses. Restaurant expenses includes advertising expense. We believe this metric provides a more useful comparison between periods and enables investors to focus on the performance of restaurant-level operations by excluding revenues not related to food and beverage sales at company-owned restaurants, corporate general and administrative expense, depreciation and amortization, and other gains and charges. |
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Restaurant operating margin excludes Franchise and other revenues which are earned primarily from franchise royalties and other non-food and beverage revenue streams such as banquet service charges, digital entertainment revenues and gift card breakage. Depreciation and amortization expense, substantially all of which is related to restaurant-level assets, is excluded because such expenses represent historical costs which do not reflect current cash outlays for the restaurants. General and administrative expense includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices and is therefore excluded. We believe that excluding special items, included within Other gains and charges, from restaurant operating margin provides investors with a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results. Restaurant operating margin as presented may not be comparable to other similarly titled measures of other companies in our industry. |
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Q4F17 |
Q4F16 |
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Operating income – GAAP |
80.3 |
99.3 |
||||
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Operating income as a percent of total revenues |
9.9 |
% |
11.3 |
% |
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|
Operating income |
80.3 |
99.3 |
||||
|
Less: Franchise and other revenues |
(24.8) |
(26.3) |
||||
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Plus: Depreciation and amortization |
38.9 |
39.0 |
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General and administrative |
30.8 |
32.5 |
||||
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Other gains and charges |
8.7 |
11.7 |
||||
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Restaurant operating margin – non-GAAP |
133.9 |
156.2 |
||||
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Restaurant operating margin as a percent of company sales |
17.0 |
% |
18.3 |
% |
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Table 5: Reconciliation of free cash flow |
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FY 17; $ millions |
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Brinker believes presenting free cash flow provides a useful measure to evaluate the cash flow available for reinvestment after considering the capital requirements of our business operations. |
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Fifty-Two Week Period |
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Cash flows provided by operating activities – GAAP |
312.9 |
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Capital expenditures |
(102.6) |
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Free cash flow – non-GAAP |
210.3 |
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Table 6: Immaterial correction of prior period financial statements |
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FY 16 and FY 15; $ thousands except per share amounts |
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In connection with the preparation of the consolidated financial statements for the year ended June 28, 2017, the Company discovered immaterial errors in prior years relating to the accuracy of the deferred income tax liability, primarily related to property and equipment. While the Company has concluded that the impact of these errors on the Company’s previously-issued consolidated financial statements is not material, the Company has determined to revise its previously-reported consolidated financial statements for the years ended June 29, 2016 and June 24, 2015. |
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The revisions to our consolidated statements of comprehensive income for the years ended June 29, 2016 and June 24, 2015 are as follows: |
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Fifty-Three Week Period Ended |
Fifty-Two Week Period Ended |
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As Reported |
As Revised |
As Reported |
As Revised |
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|
Income before provision for income taxes |
$ |
286,387 |
$ |
286,387 |
$ |
284,277 |
284,277 |
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Provision for income taxes |
85,642 |
85,767 |
87,583 |
89,618 |
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|
Net income |
$ |
200,745 |
$ |
200,620 |
$ |
196,694 |
$ |
194,659 |
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|
Basic net income per share |
$ |
3.47 |
$ |
3.47 |
$ |
3.12 |
$ |
3.09 |
||||||||
|
Diluted net income per share |
$ |
3.42 |
$ |
3.42 |
$ |
3.05 |
$ |
3.02 |
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|
Basic weighted average shares outstanding |
57,895 |
57,895 |
63,072 |
63,072 |
||||||||||||
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Diluted weighted average shares outstanding |
58,684 |
58,684 |
64,404 |
64,404 |
||||||||||||
|
Other comprehensive loss: |
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|
Foreign currency translation adjustment |
$ |
(2,964) |
$ |
(2,964) |
$ |
(7,690) |
$ |
(7,690) |
||||||||
|
Other comprehensive loss |
(2,964) |
(2,964) |
(7,690) |
(7,690) |
||||||||||||
|
Comprehensive income |
$ |
197,781 |
$ |
197,656 |
$ |
189,004 |
$ |
186,969 |
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Table 7: Immaterial correction of prior period financial statements |
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|
FY 16; $ thousands |
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The revisions to our consolidated balance sheet as of June 29, 2016 were as follows: |
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|
June 29, 2016 |
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As Reported |
As Revised |
|||||||
|
Accounts receivable, net |
$ |
43,944 |
$ |
45,612 |
||||
|
Current assets |
176,774 |
178,442 |
||||||
|
Deferred income taxes, net |
27,003 |
14,325 |
||||||
|
Total other assets |
249,534 |
236,856 |
||||||
|
Total assets |
1,469,460 |
1,458,450 |
||||||
|
Income taxes payable |
18,814 |
22,022 |
||||||
|
Other current liabilities |
428,880 |
432,088 |
||||||
|
Other liabilities |
139,423 |
137,682 |
||||||
|
Total shareholders’ deficit |
(213,099) |
(225,576) |
||||||
|
Total liabilities and shareholders’ deficit |
$ |
1,469,460 |
$ |
1,458,450 |
||||
The revisions had no impact on cash flows from operating, investing, or financing activities on the consolidated statements of cash flows for fiscal years 2016 and 2015. The revisions to the consolidated statements of shareholders’ deficit include the change to net income and the changes to comprehensive income, as noted above, and a $12.4 million decrease to retained earnings at the beginning of fiscal 2016.
Forward Calendar
– SEC Form 10-K for fiscal 2017 filing on or before Aug. 28, 2017; and
– First quarter earnings release, before market opens, Nov. 1, 2017.
About Brinker
Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Founded in 1975 and based in Dallas, Texas, as of June 28, 2017, Brinker owned, operated, or franchised 1,674 restaurants under the names Chili’s®Grill & Bar (1,622 restaurants) and Maggiano’s Little Italy® (52 restaurants).
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BRINKER INTERNATIONAL, INC. |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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|
(In thousands, except per share amounts) |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
Thirteen Week |
Fourteen Week |
Fifty-Two Week |
Fifty-Three Week |
|||||||||||||
|
June 28, 2017 |
June 29, 2016 |
June 28, 2017 |
June 29, 2016 |
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|
Revenues: |
||||||||||||||||
|
Company sales |
$ |
785,836 |
$ |
855,361 |
$ |
3,062,579 |
$ |
3,166,659 |
||||||||
|
Franchise and other revenues (a) |
24,825 |
26,320 |
88,258 |
90,830 |
||||||||||||
|
Total revenues |
810,661 |
881,681 |
3,150,837 |
3,257,489 |
||||||||||||
|
Operating costs and expenses: |
||||||||||||||||
|
Company restaurants (excluding depreciation and amortization) |
||||||||||||||||
|
Cost of sales |
203,579 |
224,440 |
791,321 |
840,204 |
||||||||||||
|
Restaurant labor |
257,051 |
279,131 |
1,017,945 |
1,036,005 |
||||||||||||
|
Restaurant expenses |
191,364 |
195,614 |
773,510 |
762,663 |
||||||||||||
|
Company restaurant expenses |
651,994 |
699,185 |
2,582,776 |
2,638,872 |
||||||||||||
|
Depreciation and amortization |
38,883 |
39,033 |
156,409 |
156,368 |
||||||||||||
|
General and administrative |
30,805 |
32,403 |
132,819 |
127,593 |
||||||||||||
|
Other gains and charges (b) |
8,671 |
11,726 |
22,655 |
17,180 |
||||||||||||
|
Total operating costs and expenses |
730,353 |
782,347 |
2,894,659 |
2,940,013 |
||||||||||||
|
Operating income |
80,308 |
99,334 |
256,178 |
317,476 |
||||||||||||
|
Interest expense |
13,439 |
8,497 |
49,547 |
32,574 |
||||||||||||
|
Other, net |
(793) |
(375) |
(1,877) |
(1,485) |
||||||||||||
|
Income before provision for income taxes |
67,662 |
91,212 |
208,508 |
286,387 |
||||||||||||
|
Provision for income taxes |
17,078 |
28,995 |
57,685 |
85,767 |
||||||||||||
|
Net income |
$ |
50,584 |
$ |
62,217 |
$ |
150,823 |
$ |
200,620 |
||||||||
|
Basic net income per share |
$ |
1.03 |
$ |
1.12 |
$ |
2.98 |
$ |
3.47 |
||||||||
|
Diluted net income per share |
$ |
1.02 |
$ |
1.10 |
$ |
2.94 |
$ |
3.42 |
||||||||
|
Basic weighted average shares outstanding |
48,917 |
55,657 |
50,638 |
57,895 |
||||||||||||
|
Diluted weighted average shares outstanding |
49,435 |
56,394 |
51,250 |
58,684 |
||||||||||||
|
Other comprehensive income (loss): |
||||||||||||||||
|
Foreign currency translation adjustment (c) |
$ |
1,084 |
$ |
330 |
$ |
(327) |
$ |
(2,964) |
||||||||
|
Other comprehensive income (loss) |
1,084 |
330 |
(327) |
(2,964) |
||||||||||||
|
Comprehensive income |
$ |
51,668 |
$ |
62,547 |
$ |
150,496 |
$ |
197,656 |
||||||||
|
(a) |
Franchise and other revenues primarily includes royalties, development fees, franchise fees, Maggiano’s banquet service charge income, gift card breakage and discounts, digital entertainment revenue, Chili’s retail food product royalties and delivery fee income. |
|
(b) |
Other gains and charges include: |
|
Thirteen Week |
Fourteen Week |
Fifty-Two Week |
Fifty-Three Week |
||||||||||||
|
June 28, 2017 |
June 29, 2016 |
June 28, 2017 |
June 29, 2016 |
||||||||||||
|
Restaurant impairment charges |
$ |
3,338 |
$ |
6,714 |
$ |
5,190 |
$ |
10,651 |
|||||||
|
Lease guarantee charges |
1,089 |
— |
1,089 |
— |
|||||||||||
|
Accelerated depreciation |
644 |
— |
1,988 |
— |
|||||||||||
|
Restaurant closure charges |
463 |
3,691 |
4,084 |
3,780 |
|||||||||||
|
Severance and other benefits |
369 |
936 |
6,591 |
3,304 |
|||||||||||
|
Information technology restructuring |
39 |
— |
2,739 |
— |
|||||||||||
|
Gain on the sale of assets, net |
(35) |
— |
(2,659) |
(2,858) |
|||||||||||
|
Impairment of investment |
— |
— |
— |
1,000 |
|||||||||||
|
Impairment of intangible assets |
— |
392 |
— |
392 |
|||||||||||
|
Litigation |
— |
(1,159) |
— |
(3,191) |
|||||||||||
|
Acquisition costs |
— |
— |
— |
700 |
|||||||||||
|
Other |
2,764 |
1,152 |
3,633 |
3,402 |
|||||||||||
|
$ |
8,671 |
$ |
11,726 |
$ |
22,655 |
$ |
17,180 |
||||||||
|
(c) |
The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants and the Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. |
|
BRINKER INTERNATIONAL, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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|
(In thousands) |
||||||||
|
(Unaudited) |
||||||||
|
June 28, 2017 |
June 29, 2016 |
|||||||
|
ASSETS |
||||||||
|
Current assets |
$ |
154,392 |
$ |
178,442 |
||||
|
Net property and equipment (a) |
1,000,614 |
1,043,152 |
||||||
|
Total other assets |
258,694 |
236,856 |
||||||
|
Total assets |
$ |
1,413,700 |
$ |
1,458,450 |
||||
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
||||||||
|
Current installments of long-term debt |
$ |
9,649 |
$ |
3,563 |
||||
|
Other current liabilities |
436,779 |
432,088 |
||||||
|
Long-term debt, less current installments |
1,319,829 |
1,110,693 |
||||||
|
Other liabilities |
141,124 |
137,682 |
||||||
|
Total shareholders’ deficit |
(493,681) |
(225,576) |
||||||
|
Total liabilities and shareholders’ deficit |
$ |
1,413,700 |
$ |
1,458,450 |
||||
|
(a) |
At June 28, 2017, the company owned the land and buildings for 190 of the 1,003 company-owned restaurants. The net book values of the land totaled $143.2 million and the buildings totaled $97.3 million associated with these restaurants. |
|
BRINKER INTERNATIONAL, INC. |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(In thousands) |
||||||||
|
(Unaudited) |
||||||||
|
Fifty-Two Week |
Fifty-Three Week |
|||||||
|
June 28, 2017 |
June 29, 2016 |
|||||||
|
Cash Flows From Operating Activities: |
||||||||
|
Net income |
$ |
150,823 |
$ |
200,620 |
||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
|
Depreciation and amortization |
156,409 |
156,368 |
||||||
|
Stock-based compensation |
14,568 |
15,159 |
||||||
|
Restructure charges and other impairments |
14,412 |
17,445 |
||||||
|
Net (gain) loss on disposal of assets |
(377) |
87 |
||||||
|
Changes in assets and liabilities |
(22,949) |
5,021 |
||||||
|
Net cash provided by operating activities |
312,886 |
394,700 |
||||||
|
Cash Flows from Investing Activities: |
||||||||
|
Payments for property and equipment |
(102,573) |
(112,788) |
||||||
|
Proceeds from sale of assets |
3,157 |
4,256 |
||||||
|
Payment for business acquisition, net of cash acquired |
— |
(105,577) |
||||||
|
Net cash used in investing activities |
(99,416) |
(214,109) |
||||||
|
Cash Flows from Financing Activities: |
||||||||
|
Proceeds from issuance of long-term debt |
350,000 |
— |
||||||
|
Purchases of treasury stock |
(370,877) |
(284,905) |
||||||
|
Payments on revolving credit facility |
(388,000) |
(110,000) |
||||||
|
Borrowings on revolving credit facility |
250,000 |
256,500 |
||||||
|
Payments of dividends |
(70,771) |
(74,066) |
||||||
|
Payments for debt issuance costs |
(10,216) |
— |
||||||
|
Proceeds from issuances of treasury stock |
5,621 |
6,147 |
||||||
|
Payments on long-term debt |
(3,832) |
(3,402) |
||||||
|
Excess tax benefits from stock-based compensation |
2,223 |
5,460 |
||||||
|
Net cash used in financing activities |
(235,852) |
(204,266) |
||||||
|
Net change in cash and cash equivalents |
(22,382) |
(23,675) |
||||||
|
Cash and cash equivalents at beginning of year |
31,446 |
55,121 |
||||||
|
Cash and cash equivalents at end of year |
$ |
9,064 |
$ |
31,446 |
||||
|
BRINKER INTERNATIONAL, INC. |
||||||||||||
|
RESTAURANT SUMMARY |
||||||||||||
|
Fourth Quarter |
Total Restaurants |
Openings Fiscal |
Projected |
|||||||||
|
Company-owned restaurants: |
||||||||||||
|
Chili’s domestic |
3 |
937 |
7 |
5-6 |
||||||||
|
Chili’s international |
— |
14 |
1 |
— |
||||||||
|
Maggiano’s |
— |
52 |
2 |
1 |
||||||||
|
Total company-owned |
3 |
1,003 |
10 |
6-7 |
||||||||
|
Franchise restaurants: |
||||||||||||
|
Chili’s domestic |
1 |
315 |
6 |
6-8 |
||||||||
|
Chili’s international |
14 |
356 |
30 |
38-43 |
||||||||
|
Total franchise |
15 |
671 |
36 |
44-51 |
||||||||
|
Total restaurants: |
||||||||||||
|
Chili’s domestic |
4 |
1,252 |
13 |
11-14 |
||||||||
|
Chili’s international |
14 |
370 |
31 |
38-43 |
||||||||
|
Maggiano’s |
— |
52 |
2 |
1 |
||||||||
|
Grand total |
18 |
1,674 |
46 |
50-58 |
||||||||