DALLAS, Jan. 30, 2018 /PRNewswire/ -- Brinker
International, Inc. (NYSE: EAT) today announced results for the
fiscal second quarter ended Dec. 27,
2017.
Highlights include the following:
- On a GAAP basis, earnings per diluted share were $0.54 for the second quarter of fiscal 2018
representing a 21.7 percent decrease from $0.69 in the second quarter of fiscal 2017
- Earnings per diluted share, excluding special items, were
$0.87 for the second quarter of
fiscal 2018 representing a 22.5 percent increase from $0.71 in the second quarter of fiscal 2017 (see
non-GAAP reconciliation below)
- The Tax Cuts and Jobs Act of 2017 (the "Tax Act") negatively
impacted GAAP net income by $3.9
million or $0.08 per diluted
share, consisting of $8.7 million or
$0.18 per diluted share for the
revaluation of the Company's net deferred tax assets, partially
offset by the impact from the decrease in the statutory tax rate of
$4.8 million or $0.10 per diluted share for the second quarter of
2017
- Brinker International's total revenues were $766.4 million in the second quarter of fiscal
2018 decreasing 0.6 percent compared to the second quarter of
fiscal 2017, and company sales were $742.7
million in the second quarter of fiscal 2018 decreasing 0.8
percent compared to the second quarter of fiscal 2017
- Chili's company-owned comparable restaurant sales decreased 1.5
percent in the second quarter of fiscal 2018 compared to the second
quarter of fiscal 2017. Chili's U.S. franchise comparable
restaurant sales decreased 1.7 percent in the second quarter
of fiscal 2018 compared to the second quarter of fiscal 2017
- Chili's international franchise comparable restaurant sales
increased 0.1 percent in the second quarter of fiscal 2018 compared
to the second quarter of fiscal 2017
- Maggiano's comparable restaurant sales increased 1.8 percent in
the second quarter of fiscal 2018 compared to the second quarter of
fiscal 2017
- Operating income, as a percent of total
revenues, was 7.1 percent for the second quarter of fiscal 2018
compared to 8.0 percent for the second quarter of fiscal 2017
representing a decrease of approximately 90 basis points
- Restaurant operating margin, as a percent of
company sales, was 14.9 percent for the second quarter of fiscal
2018 compared to 15.1 percent for the second quarter of fiscal 2017
representing a decrease of approximately 20 basis points (see
non-GAAP reconciliation below)
- For the first six months of fiscal 2018, cash flows provided by
operating activities were $119.7
million and capital expenditures totaled $48.6 million. Free cash flow was $71.1 million (see non-GAAP reconciliation
below)
- The Company is updating its fiscal 2018 outlook and now
estimates earnings per diluted share, excluding special items and
the revaluation of the Company's deferred tax accounts, to be in
the range of $3.42 to $3.52 for fiscal 2018
"Brinker saw performance improve across the business during the
second quarter, especially related to our initiatives to change
traffic trends at Chili's," said Wyman
Roberts, chief executive officer and president. "With
this foundational strategy in place, we will focus on targeted
segments of the business we believe will enhance the guest
experience and drive traffic."
Table 1: Q2
comparable restaurant sales1
|
|
Company-owned,
reported brands and franchise; percentage
|
|
|
Q2
18
|
|
Q2
17
|
Brinker
International
|
(1.0)
|
|
|
(2.9)
|
|
Chili's
Company-Owned
|
|
|
|
Comparable Restaurant
Sales
|
(1.5)
|
|
|
(3.3)
|
|
Pricing Impact
|
2.3
|
|
|
1.8
|
|
Mix-Shift2
|
0.6
|
|
|
1.4
|
|
Traffic
|
(4.4)
|
|
|
(6.5)
|
|
Maggiano's
|
|
|
|
Comparable Restaurant
Sales
|
1.8
|
|
|
(0.8)
|
|
Pricing Impact
|
1.1
|
|
|
2.6
|
|
Mix-Shift2
|
1.1
|
|
|
(0.9)
|
|
Traffic
|
(0.4)
|
|
|
(2.5)
|
|
|
|
|
|
Chili's
Franchise3
|
(1.0)
|
|
|
(3.5)
|
|
U.S.
Comparable Restaurant Sales
|
(1.7)
|
|
|
(3.0)
|
|
International
Comparable Restaurant Sales
|
0.1
|
|
|
(4.2)
|
|
|
|
|
|
Chili's
Domestic4
|
(1.6)
|
|
|
(3.2)
|
|
System-wide5
|
(1.0)
|
|
|
(3.1)
|
|
|
|
|
1
|
|
Comparable restaurant
sales includes all restaurants that have been in operation for more
than 18 months.
|
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.
|
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.
|
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.
|
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.
|
Quarterly Operating Performance
CHILI'S second quarter company sales decreased 1.3 percent to
$623.6 million from $632.1 million in the prior year primarily due to
a decline in comparable restaurant sales. As compared to the prior
year, Chili's restaurant operating margin1 declined.
Restaurant labor, as a percent of company sales, increased compared
to the prior year due to higher wage rates, partially offset by
lower employee health insurance costs and incentive bonuses. Cost
of sales, as a percent of company sales, increased slightly
compared to the prior year due to unfavorable product mix on beef,
ribs and chicken and unfavorable commodity pricing on produce,
partially offset by increased menu pricing and favorable commodity
pricing on beef. Restaurant expenses, as a percent of company
sales, decreased due to lower advertising and repairs and
maintenance expenses, partially offset by sales deleverage.
MAGGIANO'S second quarter company sales increased 2.1 percent to
$119.1 million from $116.6 million in the prior year primarily due to
an increase in comparable restaurant sales. As compared to the
prior year, Maggiano's restaurant operating margin1
improved. Restaurant expenses, as a percent of company sales,
decreased primarily due to sales leverage and lower property taxes,
preopening and workers' compensation insurance expenses. Restaurant
labor, as a percent of company sales, decreased compared to the
prior year due to sales leverage and lower incentive bonuses,
partially offset by higher wage rates. Cost of sales, as a percent
of company sales, was negatively impacted by unfavorable commodity
pricing, 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 increased 6.3 percent to
$23.7 million for the second quarter
of fiscal 2018 compared to $22.3
million in the prior year second quarter primarily due to
higher gift card-related revenues. Brinker franchisees
generated approximately $324 million in
sales2 for the second quarter of fiscal 2018.
2Royalty revenues are recognized based on the sales
generated and reported to the Company by franchisees.
Other
Depreciation and amortization expense decreased $1.7 million for the current quarter compared to
the second quarter of fiscal 2017 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 $0.5 million for the current quarter compared to
the second quarter of fiscal 2017 primarily due to lower
compensation-related expenses.
Income Taxes
The Tax Act was enacted on December 22,
2017 with an effective date of January 1, 2018. The enactment date occurred
prior to the end of the second quarter of fiscal 2018 and therefore
the federal statutory tax rate changes stipulated by the Tax Act
were reflected in the current quarter. The Tax Act lowered the
federal statutory tax rate from 35 percent to 21 percent effective
January 1, 2018. Brinker's federal
statutory tax rate for fiscal 2018 is now 28 percent, representing
a blended tax rate for the current fiscal year based on the number
of days in the fiscal year before and after the effective date. For
subsequent years, our federal statutory tax rate will be 21%. We
were also required to revalue our deferred tax accounts using the
new federal statutory tax rate in the period in which the Tax Act
was enacted. The Company's deferred tax position is a net asset and
as a result, the reduction in the federal statutory tax rate
resulted in a one-time non-cash adjustment to our net deferred tax
balance of $8.7 million with a
corresponding increase to the provision for income taxes in the
second quarter of fiscal 2018.
On a GAAP basis, the effective income tax rate increased to 38.3
percent in the second quarter of fiscal 2018 from 28.2 percent in
the second quarter of fiscal 2017. This increase was driven
by the revaluation of the Company's deferred tax accounts pursuant
to the Tax Act, partially offset by the positive impact of lowering
the federal statutory tax rate and lower profits. Excluding the
impact of special items and the revaluation of the Company's
deferred tax accounts, the effective income tax rate decreased to
19.5 percent in the second quarter of fiscal 2018 compared to 28.1
percent in the second quarter of fiscal 2017 primarily due to the
lower corporate tax rate and lower profits.
Fiscal 2018 Outlook Update
The Tax Act will have a material impact on the Company's
effective tax rate for fiscal 2018. The Company
estimates adjusted earnings per diluted share, excluding special
items and the revaluation of the Company's deferred tax accounts,
for fiscal 2018 will be in the range of $3.42 to $3.52
including the effective rate impact of the Tax Act.
Previously, the Company expected the effective income tax rate
excluding the impact of special items to be approximately 27 to 29
percent for fiscal 2018. The Company's effective tax rate
excluding the impact of special items and the revaluation of the
deferred tax accounts is now expected to be approximately 20 to 22
percent. 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 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 GAAP
measures. If special items are reported in the remainder of
fiscal 2018, reconciliations to the appropriate GAAP measures will
be provided.
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
financial results. Non-GAAP disclosures should not be viewed as a
substitute for financial 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.
Table 2:
Reconciliation of net income excluding special items
|
Q2 18 and Q2 17; $
millions and $ per diluted share
|
|
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.
|
|
|
|
Q2
18
|
|
EPS Q2
18
|
|
Q2
17
|
|
EPS Q2
17
|
Net Income
|
|
$
|
25.4
|
|
|
$
|
0.54
|
|
|
$
|
34.6
|
|
|
$
|
0.69
|
|
Special
items1
|
|
9.3
|
|
|
0.20
|
|
|
1.3
|
|
|
0.03
|
|
Income tax effect
related to special items2
|
|
(2.4)
|
|
|
(0.05)
|
|
|
(0.3)
|
|
|
(0.01)
|
|
Special items, net of
taxes
|
|
6.9
|
|
|
0.15
|
|
|
1.0
|
|
|
0.02
|
|
Adjustment for tax
items3
|
|
8.3
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
Net Income excluding
special items
|
|
$
|
40.6
|
|
|
$
|
0.87
|
|
|
$
|
35.6
|
|
|
$
|
0.71
|
|
|
|
|
1
|
|
See footnote "b" to
the consolidated statements of comprehensive income for additional
details on the composition of these amounts.
|
2
|
|
The income tax effect
related to special items is based on the statutory tax rate in
effect at the end of each quarter presented. The tax rate used for
Q2 fiscal 2018 is based on the tax rate stipulated by the Tax Act
enacted on December 22, 2017.
|
3
|
|
Amounts represent the
revaluation of our net deferred taxes using the new lower corporate
tax rate pursuant to the Tax Act. Additionally, this amount
includes $0.4 million of tax benefits from the settlement of
stock-based compensation awards in the provision for income
taxes.
|
Table 3:
Reconciliation of restaurant operating margin
|
Q2 18 and Q2 17; $
millions
|
|
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 restaurant
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.
|
|
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.
|
|
|
|
Q2
18
|
|
Q2
17
|
Operating income -
GAAP
|
|
$
|
54.4
|
|
|
$
|
61.5
|
|
Operating income as a
percent of total revenues
|
|
7.1
|
%
|
|
8.0
|
%
|
|
|
|
|
|
Operating
income
|
|
54.4
|
|
|
61.5
|
|
Less: Franchise
and other revenues
|
|
(23.7)
|
|
|
(22.3)
|
|
Plus:
Depreciation and amortization
|
|
37.7
|
|
|
39.3
|
|
General and
administrative
|
|
33.1
|
|
|
33.5
|
|
Other gains and
charges
|
|
9.3
|
|
|
1.3
|
|
Restaurant operating
margin - non-GAAP
|
|
$
|
110.8
|
|
|
$
|
113.3
|
|
Restaurant operating
margin as a percent of company sales
|
|
14.9
|
%
|
|
15.1
|
%
|
Table 4:
Reconciliation of free cash flow
|
Q2 18; $
millions
|
|
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.
|
|
|
|
Twenty-six Week
Period
Ended Dec. 27, 2017
|
Cash flows provided
by operating activities - GAAP
|
|
$
|
119.7
|
|
Capital
expenditures
|
|
(48.6)
|
|
Free cash flow -
non-GAAP
|
|
$
|
71.1
|
|
Webcast 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 broadcast live on Brinker's website
at 9 a.m. CST today (Jan. 30) -
http://investors.brinker.com/phoenix.zhtml?c=119205&p=irol-EventDetails&EventId=5266817
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 Brinker's website until the end of the day Feb. 27, 2018.
Additional financial information, including statements of income
which detail operations excluding special items, franchise and
other revenues, and comparable restaurant sales trends by brand, is
also available on Brinker's website under the Financial Information
section of the Investor tab.
Forward Calendar
- SEC Form 10-Q for the second quarter of fiscal 2018
filing on or before Feb. 5, 2018;
and
- Third quarter earnings release, before market opens,
May 1, 2018.
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 December 27, 2017, Brinker owned, operated, or
franchised 1,682 restaurants under the names Chili's®
Grill & Bar (1,630 restaurants) and Maggiano's Little
Italy® (52 restaurants).
Forward-Looking Statements
The statements contained in this release that are not historical
facts are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are based on our
current plans and expectations and involve risks and uncertainties
which could cause actual results to differ materially from our
historical results or from those projected in forward-looking
statements. These risks and uncertainties are, in many instances,
beyond our control. Such risks and uncertainties include, among
other things, general business and economic conditions, financial
and credit market conditions, litigation, reduced disposable
income, the impact of competition, the impact of mergers,
acquisitions, divestitures and other strategic transactions,
franchisee success, the seasonality of the company's business,
increased minimum wages, increased health care costs, adverse
weather conditions, loss of key management personnel, product
availability, actions of activist shareholders, terrorist 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 business strategy plan, material weaknesses in
internal control over financial reporting, governmental
regulations, tax reform, inflation, technology failures, and
failure to protect the security of data of our guests and
teammates, as well as the risks described under the caption "Risk
Factors" in our Annual Report on Form 10-K and future filings with
the Securities and Exchange Commission.
BRINKER
INTERNATIONAL, INC.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Thirteen Week
Periods Ended
|
|
Twenty-Six Week
Periods Ended
|
|
Dec. 27,
2017
|
|
Dec. 28,
2016
|
|
Dec. 27,
2017
|
|
Dec. 28,
2016
|
Revenues:
|
|
|
|
|
|
|
|
Company
sales
|
$
|
742,688
|
|
|
$
|
748,709
|
|
|
$
|
1,459,630
|
|
|
$
|
1,486,119
|
|
Franchise and other
revenues (a)
|
23,712
|
|
|
22,334
|
|
|
46,160
|
|
|
43,416
|
|
Total
revenues
|
766,400
|
|
|
771,043
|
|
|
1,505,790
|
|
|
1,529,535
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Company restaurants
(excluding depreciation and amortization)
|
|
|
|
|
|
|
|
Cost of
sales
|
192,883
|
|
|
193,537
|
|
|
380,480
|
|
|
385,839
|
|
Restaurant
labor
|
250,416
|
|
|
248,692
|
|
|
501,491
|
|
|
499,262
|
|
Restaurant
expenses
|
188,649
|
|
|
193,131
|
|
|
376,778
|
|
|
389,774
|
|
Company restaurant
expenses
|
631,948
|
|
|
635,360
|
|
|
1,258,749
|
|
|
1,274,875
|
|
Depreciation and
amortization
|
37,655
|
|
|
39,305
|
|
|
76,175
|
|
|
78,191
|
|
General and
administrative
|
33,088
|
|
|
33,546
|
|
|
65,446
|
|
|
66,083
|
|
Other gains and
charges (b)
|
9,261
|
|
|
1,306
|
|
|
22,415
|
|
|
7,384
|
|
Total operating costs
and expenses
|
711,952
|
|
|
709,517
|
|
|
1,422,785
|
|
|
1,426,533
|
|
Operating
income
|
54,448
|
|
|
61,526
|
|
|
83,005
|
|
|
103,002
|
|
Interest
expense
|
14,321
|
|
|
13,641
|
|
|
28,205
|
|
|
22,450
|
|
Other, net
|
(1,015)
|
|
|
(383)
|
|
|
(1,491)
|
|
|
(682)
|
|
Income before
provision for income taxes
|
41,142
|
|
|
48,268
|
|
|
56,291
|
|
|
81,234
|
|
Provision for income
taxes
|
15,776
|
|
|
13,631
|
|
|
21,048
|
|
|
23,364
|
|
Net income
|
$
|
25,366
|
|
|
$
|
34,637
|
|
|
$
|
35,243
|
|
|
$
|
57,870
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
$
|
0.55
|
|
|
$
|
0.70
|
|
|
$
|
0.74
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$
|
0.54
|
|
|
$
|
0.69
|
|
|
$
|
0.74
|
|
|
$
|
1.09
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
46,432
|
|
|
49,833
|
|
|
47,362
|
|
|
52,339
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
46,880
|
|
|
50,480
|
|
|
47,806
|
|
|
53,028
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment (c)
|
$
|
(198)
|
|
|
$
|
(1,664)
|
|
|
$
|
820
|
|
|
$
|
(2,145)
|
|
Other comprehensive
income (loss)
|
(198)
|
|
|
(1,664)
|
|
|
820
|
|
|
(2,145)
|
|
Comprehensive
income
|
$
|
25,168
|
|
|
$
|
32,973
|
|
|
$
|
36,063
|
|
|
$
|
55,725
|
|
|
|
|
(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
Periods Ended
|
|
Twenty-Six Week
Periods Ended
|
|
Dec. 27,
2017
|
|
Dec. 28,
2016
|
|
Dec. 27,
2017
|
|
Dec. 28,
2016
|
Restaurant closure
charges
|
$
|
4,306
|
|
|
$
|
321
|
|
|
$
|
4,544
|
|
|
$
|
2,827
|
|
Restaurant impairment
charges
|
1,974
|
|
|
1,851
|
|
|
9,133
|
|
|
1,851
|
|
Lease guarantee
charges
|
1,433
|
|
|
—
|
|
|
1,433
|
|
|
—
|
|
Foreign currency
transaction loss
|
882
|
|
|
—
|
|
|
882
|
|
|
—
|
|
Hurricane-related
costs
|
572
|
|
|
—
|
|
|
5,220
|
|
|
—
|
|
Accelerated
depreciation
|
483
|
|
|
—
|
|
|
966
|
|
|
—
|
|
Gain on the sale of
assets, net
|
(348)
|
|
|
(2,569)
|
|
|
(303)
|
|
|
(2,569)
|
|
Information
technology restructuring
|
—
|
|
|
209
|
|
|
—
|
|
|
2,700
|
|
Severance
|
—
|
|
|
—
|
|
|
—
|
|
|
293
|
|
Other
|
(41)
|
|
|
1,494
|
|
|
540
|
|
|
2,282
|
|
|
$
|
9,261
|
|
|
$
|
1,306
|
|
|
$
|
22,415
|
|
|
$
|
7,384
|
|
|
|
(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 (prior to
divestiture) 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.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
Dec. 27,
2017
|
|
June 28,
2017
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
$
|
194,474
|
|
|
$
|
144,325
|
|
Net property and
equipment (a)
|
|
958,084
|
|
|
1,000,614
|
|
Total other
assets
|
|
247,987
|
|
|
258,694
|
|
Total
assets
|
|
$
|
1,400,545
|
|
|
$
|
1,403,633
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
|
Current installments
of long-term debt
|
|
$
|
8,265
|
|
|
$
|
9,649
|
|
Other current
liabilities
|
|
443,611
|
|
|
426,712
|
|
Long-term debt, less
current installments
|
|
1,365,255
|
|
|
1,319,829
|
|
Other
liabilities
|
|
136,274
|
|
|
141,124
|
|
Total shareholders'
deficit
|
|
(552,860)
|
|
|
(493,681)
|
|
Total liabilities and
shareholders' deficit
|
|
$
|
1,400,545
|
|
|
$
|
1,403,633
|
|
|
|
|
(a)
|
|
At Dec. 27, 2017, the
Company owned the land and buildings for 190 of the 997
company-owned restaurants. The net book values of the land totaled
$143.2 million and the buildings totaled $91.7 million associated
with these restaurants.
|
BRINKER
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Twenty-Six Week
Periods Ended
|
|
|
Dec. 27,
2017
|
|
Dec. 28,
2016
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
35,243
|
|
|
$
|
57,870
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
76,175
|
|
|
78,191
|
|
Stock-based
compensation
|
|
6,287
|
|
|
8,152
|
|
Restructure charges
and other impairments
|
|
14,457
|
|
|
8,000
|
|
Net loss (gain) on
disposal of assets
|
|
1,294
|
|
|
(811)
|
|
Changes in assets and
liabilities
|
|
(13,747)
|
|
|
(8,578)
|
|
Net cash provided by
operating activities
|
|
119,709
|
|
|
142,824
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Payments for property
and equipment
|
|
(48,559)
|
|
|
(60,055)
|
|
Proceeds from sale of
assets
|
|
325
|
|
|
3,022
|
|
Insurance
recoveries
|
|
1,000
|
|
|
—
|
|
Proceeds from note
receivable
|
|
480
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(46,754)
|
|
|
(57,033)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Borrowings on
revolving credit facility
|
|
320,000
|
|
|
100,000
|
|
Payments on revolving
credit facility
|
|
(276,000)
|
|
|
(138,000)
|
|
Purchases of treasury
stock
|
|
(71,792)
|
|
|
(349,994)
|
|
Payments of
dividends
|
|
(35,445)
|
|
|
(36,944)
|
|
Payments on long-term
debt
|
|
(5,091)
|
|
|
(1,862)
|
|
Proceeds from
issuances of treasury stock
|
|
1,042
|
|
|
3,837
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
350,000
|
|
Payments for debt
issuance costs
|
|
—
|
|
|
(10,216)
|
|
Net cash used in
financing activities
|
|
(67,286)
|
|
|
(83,179)
|
|
Net change in cash
and cash equivalents
|
|
5,669
|
|
|
2,612
|
|
Cash and cash
equivalents at beginning of period
|
|
9,064
|
|
|
31,446
|
|
Cash and cash
equivalents at end of period
|
|
$
|
14,733
|
|
|
$
|
34,058
|
|
BRINKER
INTERNATIONAL, INC.
|
RESTAURANT
SUMMARY
|
|
|
|
Second Quarter
Openings
Fiscal 2018
|
|
Total Restaurants
Dec. 27, 2017
|
|
Projected
Openings
Fiscal 2018
|
Company-owned
restaurants:
|
|
|
|
|
|
|
Chili's
domestic
|
|
3
|
|
|
940
|
|
|
5-6
|
|
Chili's
international
|
|
—
|
|
|
5
|
|
|
—
|
|
Maggiano's
|
|
—
|
|
|
52
|
|
|
1
|
|
Total
company-owned
|
|
3
|
|
|
997
|
|
|
6-7
|
|
Franchise
restaurants:
|
|
|
|
|
|
|
Chili's
domestic
|
|
1
|
|
|
316
|
|
|
5-7
|
|
Chili's
international
|
|
9
|
|
|
369
|
|
|
38-43
|
|
Total
franchise
|
|
10
|
|
|
685
|
|
|
43-50
|
|
Total
restaurants:
|
|
|
|
|
|
|
Chili's
domestic
|
|
4
|
|
|
1,256
|
|
|
10-13
|
|
Chili's
international
|
|
9
|
|
|
374
|
|
|
38-43
|
|
Maggiano's
|
|
—
|
|
|
52
|
|
|
1
|
|
Grand
total
|
|
13
|
|
|
1,682
|
|
|
49-57
|
|
View original
content:http://www.prnewswire.com/news-releases/brinker-international-reports-second-quarter-results-300589882.html
SOURCE Brinker International, Inc.