SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of
the Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported): January 20, 2004
BRINKER INTERNATIONAL,
INC.
(Exact name of
registrant as specified in its charter)
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Delaware |
1-10275 |
74-1914582 |
6820 LBJ Freeway
Dallas, Texas 75240
(Address of principal
executive offices)
Registrant's telephone number, including area code 972-980-9917
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99 Press Release, dated January 20, 2004.
Item 12. Results of Operations and Financial Condition.
On January 20, 2004, Brinker International, Inc. issued a Press Release announcing its second quarter fiscal 2004 results. The information in the Press Release attached hereto as Exhibit 99 is furnished pursuant to Item 12.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BRINKER INTERNATIONAL, INC. |
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Date: January 23, 2004 |
By: /s/ Douglas H. Brooks |
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Douglas H. Brooks |
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President and Chief Executive Officer |
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EXHIBIT 99
FOR IMMEDIATE RELEASE
Contacts: Louis Adams, Media Relations Hil Davis, Investor Relations
(972) 770-4967 (972) 770-7228
BRINKER INTERNATIONAL REPORTS SECOND QUARTER EARNINGS
DALLAS (Jan. 20, 2004) - Casual dining leader Brinker International, Inc. (NYSE - EAT), reported earnings per share of $0.45 for the company's second quarter ended December 24, 2003. Net income for the second quarter of fiscal 2004 was $44.1 million or $0.45 diluted earnings per share as compared to $37.2 million or $0.38 per share reported in the same quarter of fiscal 2003.
During the second quarter of fiscal 2004, Brinker completed the sale of its Cozymel's brand resulting in an additional $1.4 million after-tax loss. Brinker also recognized after-tax gains totaling $1.6 million as a result of the sale of four Chili's to a franchise partner and the sale of one real estate property.
Exclusive of certain gains and charges, net income and diluted earnings per share for second quarter fiscal 2004 and 2003 would have been as follows (net of taxes):
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Second
Quarter FY '04 |
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Diluted EPS |
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As reported |
$ 44.1 |
$ 0.45 |
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Cozymel's loss |
1.4 |
0.01 |
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Chili's/real estate gains |
(1.6) |
(0.01) |
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Adjusted |
$ 43.9 |
$ 0.45 |
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Net Income |
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As reported |
$ 37.2 |
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$ 0.38 |
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Impairment on 10 restaurants |
3.5 |
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0.04 |
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PIZZAAHHH! impairment |
2.8 |
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0.02 |
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Adjusted |
$ 43.5 |
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$ 0.44 |
Brinker reported second quarter revenues for the 13-week period of $886.5 million, an increase of 11.6 percent compared with the $794.5 million reported for the same period in fiscal 2003. These revenue gains were primarily driven by a combination of 9.3 percent capacity gains as measured by average-weighted sales weeks and a 2.3 percent increase in comparable store sales for all Brinker concepts. By brand, quarterly comparable store sales increased 1.9 percent at Chili's, 1.2 percent at Macaroni Grill, 5.0 percent at Maggiano's and 4.5 percent at On The Border.
For the four-week period ending December 24, 2003, comparable store sales increased 4.9 percent. December comparable store sales for the four reported brands were as follows:
Dec FY '04 Dec FY '03
Chili's 4.2% -1.0% Macaroni Grill 4.4% -6.1% Maggiano's 8.8% -3.7% On The Border 7.8% -7.7%
Comparable store sales included an overall price increase of 2.1 percent for Brinker International. By brand, price increases were 2.3 percent at Chili's, 2.0 percent at Macaroni Grill, 1.6 percent at Maggiano's and 1.3 percent at On The Border. Product mix-shift declined by 0.5 percent for Brinker International. By brand, product mix-shift declined 0.7 percent at Chili's and 1.1 percent at On The Border, was flat for Macaroni Grill and increased 2.3 percent at Maggiano's.
December comparable store sales were favorably impacted by approximately 3 percent due to the calendar shift of Christmas Day from the December period in fiscal 2003 to the January period in fiscal 2004. This same calendar shift will have a negative impact of approximately 3 percent on January comparable store sales.
Brinker's initial estimate for third quarter fiscal 2004 earnings per share is $0.51 to $0.53. Third quarter estimates are based on expectations of capacity growth of approximately 8 to 9 percent as measured by average-weighted sales weeks and comparable store sales growth in the 0 to 2 percent range.
The company continues to be active in its share repurchase program, acquiring approximately 1.2 million shares during the second quarter. At the end of the quarter, approximately $27.5 million was available under the company's share repurchase program.
Investors and interested parties are invited to listen to today's conference call as management will provide further details of the quarter and an outlook for future periods. The call will be broadcast live on the Brinker Web site (www.brinker.com) at 9 a.m. CST today (January 20). 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 January 23, 2004.
At the end of the second quarter of fiscal 2004, Brinker International either owned, operated, franchised, or was involved in the ownership of 1,450 restaurants under the names Chili's Grill & Bar (944 units), Romano's Macaroni Grill (213 units), Maggiano's Little Italy (28 units), On The Border Mexican Grill & Cantina (132 units), Corner Bakery Cafe (90 units), Big Bowl Asian Kitchen (20 units), and Rockfish Seafood Grill (23 units).
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 seasonality of the company's business, adverse weather conditions, future commodity prices, fuel and utility costs and availability, governmental regulations and inflation.
# # #
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BRINKER INTERNATIONAL, INC. |
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CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands, except per share amounts) |
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(Unaudited) |
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Thirteen Week Periods Ended Twenty Six Week Periods Ended |
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December 24, |
December 25, |
December 24, |
December 25, |
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2003 |
2002 |
2003 |
2002 |
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Revenues |
$ 886,490 |
$ 794,510 |
$ 1,757,388 |
$ 1,568,402 |
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Operating Costs and Expenses: |
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Cost of sales |
245,217 |
217,671 |
485,119 |
428,097 |
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Restaurant expenses (1) |
492,064 |
447,343 |
978,422 |
870,949 |
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Depreciation and amortization |
43,366 |
38,701 |
85,775 |
75,858 |
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General and administrative |
36,626 |
31,776 |
69,922 |
64,321 |
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Total operating costs and expenses |
817,273 |
735,491 |
1,619,238 |
1,439,225 |
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Operating income |
69,217 |
59,019 |
138,150 |
129,177 |
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Interest expense |
2,933 |
2,450 |
6,251 |
6,421 |
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Other, net |
1,127 |
760 |
870 |
(830) |
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Income before provision for income taxes |
65,157 |
55,809 |
131,029 |
123,586 |
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Provision for income taxes |
21,046 |
18,584 |
42,323 |
41,357 |
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Net income |
$ 44,111 |
$ 37,225 |
$ 88,706 |
$ 82,229 |
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Basic net income per share |
$ 0.46 |
$ 0.38 |
$ 0.92 |
$ 0.85 |
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Diluted net income per share |
$ 0.45 |
$ 0.38 |
$ 0.90 |
$ 0.83 |
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Basic weighted average |
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shares outstanding |
96,156 |
96,784 |
96,780 |
96,981 |
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Diluted weighted average |
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shares outstanding |
97,731 |
98,848 |
98,535 |
99,041 |
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(1) Restaurant expenses in the current period include a loss on the sale of Cozymel's totaling $2.0 million and a gain on the sale of four Chili's to a franchise partner and the sale of one real estate property totaling $2.4 million. Restaurant expenses in the prior period include approximately $9.5 million in charges associated with store closings and impairment charges.
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BRINKER INTERNATIONAL, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS
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December 24, |
June 25, |
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ASSETS |
2003 |
2003 |
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Total current assets |
$ 208,575 |
$ 166,467 |
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Net property and equipment |
1,537,533 |
1,499,572 |
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Total other assets |
278,303 |
277,251 |
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Total assets |
$ 2,024,411 |
$ 1,943,290 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Total current liabilities |
$ 365,671 |
$ 310,211 |
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Long-term debt, less current installments |
354,415 |
353,785 |
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Other liabilities |
152,168 |
139,044 |
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Total shareholders' equity |
1,152,157 |
1,140,250 |
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Total liabilities and shareholders' equity |
$ 2,024,411 |
$ 1,943,290 |
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FOR ADDITIONAL INFORMATION, CONTACT:
HIL DAVIS
INVESTOR RELATIONS
(972) 770-7228
6820 LBJ FREEWAY
DALLAS, TEXAS 75240
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BRINKER INTERNATIONAL, INC. |
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UNITS SUMMARY |
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Total Units |
Second Quarter Fiscal 2004 |
Total Units |
Projected Openings |
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Sep. 24, 2003 |
Net Activity |
Dec. 24, 2003 |
Fiscal 2004 |
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Company-Owned Units: |
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Chili's |
711 |
15 |
726 |
70-75 |
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Macaroni Grill |
198 |
6 |
204 |
18-20 |
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Maggiano's |
28 |
- |
28 |
3-4 |
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On The Border |
114 |
- |
114 |
4-5 |
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Cozymel's |
16 |
(16) |
- |
- |
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Corner Bakery |
86 |
1 |
87 |
5-8 |
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Big Bowl |
19 |
1 |
20 |
2-3 |
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1,172 |
7 |
1,179 |
102-115 |
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JV/Franchise Units: |
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Chili's |
210 |
8 |
218 |
18-21 |
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Macaroni Grill |
9 |
- |
9 |
2-3 |
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On The Border |
18 |
- |
18 |
- |
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Corner Bakery |
3 |
- |
3 |
- |
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Rockfish |
22 |
1 |
23 |
4-6 |
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262 |
9 |
271 |
24-30 |
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Total Units: |
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Chili's |
921 |
23 |
944 |
88-96 |
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Macaroni Grill |
207 |
6 |
213 |
20-23 |
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Maggiano's |
28 |
- |
28 |
3-4 |
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On The Border |
132 |
- |
132 |
4-5 |
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Cozymel's |
16 |
(16) |
- |
- |
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Corner Bakery |
89 |
1 |
90 |
5-8 |
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Big Bowl |
19 |
1 |
20 |
2-3 |
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Rockfish |
22 |
1 |
23 |
4-6 |
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1,434 |
16 |
1,450 |
126-145 |
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