The Chili’s ‘Catch a ‘Rita’ No. 7 Chevrolet celebrates the restaurant’s position as one of the nation’s top destinations for margaritas, just in time for National Margarita Day on Feb. 22
DALLAS, Feb. 13, 2024 — Chili’s® Grill & Bar, in partnership with Spire Motorsports, is shaking things up in Daytona as they unveil the paint scheme for the Chili’s ‘Catch a ‘Rita’ No. 7 Chevrolet Camaro ZL1, driven by NASCAR racer Corey LaJoie. The car’s interactive paint scheme splashes Chili’s famous Presidente Margarita® on the sides of the car in anticipation of National Margarita Day and features nine QR codes.
Fans on the ground and those watching on TV can “catch” LaJoie and the Chili’s ‘Catch a ‘Rita’ No. 7 Chevy during race week by scanning one of the QR codes on the car or LaJoie’s fire suit for a chance to win a $10 Chili’s gift card or a VIP trip to see LaJoie race in Austin, Texas on March 24.1
“I’ve had some really interesting paint schemes in Daytona, but this one takes the cake – or margarita glass – by giving fans a little token of our appreciation for following our battle on the track,” said Corey LaJoie, Spire Motorsports’ Driver of the Chili’s ‘Catch a ‘Rita’ No. 7 Chevy. “Personally, I’ve been a Chili’s fan for years, I mean, isn’t everybody? But collaborating with Chili’s on this project has only given me more appreciation for the way they do business, plus it’s also increased my chips and salsa intake sevenfold. We’ve had a ton of fun together and I’m excited to give fans a taste of that with the wild ads we’ve created.”
The paint scheme, designed by Jon Marshall & Daughters, celebrates Chili’s Presidente Margarita, though that isn’t the only thing the racecar honors. To acknowledge and celebrate the Chili’s General Managers who work tirelessly to ensure everyone feels special when they visit Chili’s, the names of 1,126 Chili’s General Managers are included on the paint scheme of Chili’s ‘Catch a ‘Rita’ No. 7 Chevy.
“Splashing our Chili’s Presidente Margarita on a car at Daytona, just a few days ahead of National Margarita Day, was an obvious choice, but we also knew we couldn’t honor this iconic margarita without acknowledging all the amazing Chiliheads that play a role in making Chili’s a fan-favorite destination for margarita lovers and race fans alike,” said George Felix, Chili’s Chief Marketing Officer. “We’re so pleased to partner with Spire Motorsports as our companies share the same values, and Corey LaJoie is the perfect embodiment of the Chilihead spirit. We can’t wait to see how the fans react and, of course, to see them try to ‘Catch a ‘Rita’ as the No. 7 Chevy whips around the track later this week.”
“It’s always fun when Spire Motorsports can be part of something unique, and we are incredibly grateful that Chili’s has entrusted our team with representing the brand for the first time at the Great American Race,” said Jeff Dickerson, Spire Motorsports co-owner. “As soon as we began speaking with the Chili’s team, we knew that Corey LaJoie would be the perfect fit. Not only is he an amazing, unflappable talent who knows what it takes to compete at this level but completely embraces the fun of the sport and as a result, has developed a great connection with race fans that will truly make this interactive paint scheme on the Chili’s ‘Catch a ‘Rita’ No. 7 Chevy come to life.”
The Chili’s ‘Catch a ‘Rita’ No. 7 Chevy will also be featured in multiple advertisements featuring LaJoie, one in which he introduces the car’s design, including the Catch-a-Rita challenge, and another which will air during the race broadcast. Catch LaJoie in the new Chili’s ads featuring the Chili’s ‘Catch a ‘Rita’ No.7 Chevy, available HERE.
Fans who don’t ‘catch’ a ‘rita during race week can still visit participating Chili’s on Feb. 22 for National Margarita Day to enjoy2 specials on premium margaritas including the Tequila Trifecta – featuring three premium tequilas, el Jimador® Silver, 1800® Reposado and Jose Cuervo® Gold, shaken with triple sec and fresh sour for just $5 – and the February Margarita of the Month, the StrawEddy – available for $6 and made with Deep Eddy Lemon Vodka, Lunazul Blanco Tequila, strawberry puree and fresh sour.2
About Chili’s® Grill & Bar
Hi, welcome to Chili’s! We are a leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT). We are known for our big mouth burgers, Chicken Crispers®, full-on sizzling fajitas and hand-shaken margaritas. We take our food seriously – but not ourselves – because dining out should feel like a celebration even if there is nothing to celebrate. Our passion is making everyone feel special, and every day, our ChiliHeads make it their job to spread #ChilisLove across our more than 1,600 restaurants in 29 countries and two territories. And Chili’s cares. We host local Give Back Events to support kids, education and hunger and have raised more than $100 million benefiting St. Jude Children’s Research Hospital through generous Guest donations. Find more information about us at chilis.com, follow us on Twitter or Instagram, like us on Facebook or join us on TikTok.
About Spire Motorsports
Spire Motorsports is a NASCAR Cup Series and NASCAR CRAFTSMAN Truck Series race team co-owned by long-time NASCAR industry executives Jeff Dickerson and Thaddeus “T.J.” Puchyr. In 2024, Spire Motorsports will campaign the Nos. 7, 71 and 77 Chevrolet Camaro ZL1s in the NASCAR Cup Series with drivers Corey LaJoie, Zane Smith and Carson Hocevar, respectively. The team will also field the Nos. 7, 71 and 77 Chevrolet Silverados full time in the NASCAR CRAFTSMAN Truck Series. An all-star driver lineup will rotate throughout the 2024 season in the No. 7 Chevy. Rajah Caruth will drive the No. 71 entry and Chase Purdy rounds out the team’s fleet of Chevrolets in the No. 77.
Spire Motorsports earned its inaugural NASCAR Cup Series victory in its first full season of competition when Justin Haley took the checkered flag in the Coke Zero Sugar 400 at Daytona International Speedway on July 7, 2019. Less than three years later, William Byron drove Spire Motorsports’ No. 7 Chevrolet Silverado to its inaugural NASCAR CRAFTSMAN Truck Series win on April 7, 2022, at Martinsville Speedway. The team’s most recent win came on May 20, 2023, when Kyle Larson took the checkered flag in the Tyson 250 at North Wilkesboro Speedway.
1 Giveaway Terms and Conditions: NO PURCHASE NECESSARY. Open to legal residents of the 50 U.S. and DC, who are at least 21 years old as of date of Entry. Begins 9:00 AM ET on 2/13/24; ends 11:59:59 PM ET on 2/19/24. Odds of winning depend on number of eligible entries received. For Official Rules and eligibility, visit chiliscatcharita.com. Sponsor: Brinker International Payroll Company, L.P., 3000 Olympus Blvd., Dallas, TX 75019.
2 Guests must be 21+ to participate in National Margarita Day promotions
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SOURCE Chili’s Grill & Bar
]]>DALLAS, Jan. 31, 2024 — Brinker International, Inc. (NYSE: EAT) today announced its financial results for the second quarter ended December 27, 2023.
Second Quarter Fiscal 2024 Financial Highlights
Brinker International reported net income per diluted share of $0.94, in the second quarter of fiscal 2024, a 51.6% increase compared to the second quarter of fiscal 2023. Net income per diluted share, excluding special items (non-GAAP), was $0.99 in the second quarter of fiscal 2024, a 30.3% increase compared to the second quarter of fiscal 2023.
Our results for the second quarter of fiscal 2024 were primarily driven by effective marketing and pricing strategies. Guest traffic improved sequentially in the second quarter despite the headwind created by our decision to de-emphasize virtual brands. Comparable restaurant sales increased 5.2%, with an increase in comparable restaurant sales of 5.0% for Chili’s and 6.7% for Maggiano’s. The increase in Company sales resulted in operating income margin increasing to 5.8% and restaurant operating margin (non-GAAP) increasing to 13.1% for the second quarter.
“Our second quarter marked another quarter of year over year growth with continued margin improvement, driven by our strategy to simplify operations, improve our food, service, and atmosphere, and deploy an effective marketing plan,” said Kevin Hochman, Chief Executive Officer and President of Brinker International. “We’re pleased with our progress, which has allowed us to improve our traffic trends and now outpace the industry.”
Second Quarter Financial Results
Second Quarter |
|||||
2024 |
2023 |
Variance |
|||
Company sales |
$ 1,063.7 |
$ 1,009.4 |
$ 54.3 |
||
Total revenues |
$ 1,074.1 |
$ 1,019.0 |
$ 55.1 |
||
Operating income |
$ 62.4 |
$ 40.7 |
$ 21.7 |
||
Operating income as a % of Total revenues |
5.8 % |
4.0 % |
1.8 % |
||
Restaurant operating margin, non-GAAP(1) |
$ 139.8 |
$ 117.0 |
$ 22.8 |
||
Restaurant operating margin as a % of Company sales, non-GAAP(1) |
13.1 % |
11.6 % |
1.5 % |
||
Net income |
$ 42.1 |
$ 27.9 |
$ 14.2 |
||
Adjusted EBITDA, non-GAAP(1) |
$ 107.0 |
$ 91.0 |
$ 16.0 |
||
Net income per diluted share |
$ 0.94 |
$ 0.62 |
$ 0.32 |
||
Net income per diluted share, excluding special items, non-GAAP(1) |
$ 0.99 |
$ 0.76 |
$ 0.23 |
Comparable Restaurant Sales(2)
Q2:24 vs 23 |
|
Brinker |
5.2 % |
Chili’s |
5.0 % |
Maggiano’s |
6.7 % |
(1) |
See Non-GAAP Information and Reconciliations section below for more details. |
(2) |
Comparable Restaurant Sales include restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed for 14 days or more are excluded from comparable restaurant sales. Percentage amounts are calculated based on the comparable periods year-over-year. |
Updates to Full Year Fiscal 2024 Guidance
We are providing the following updates to our full year fiscal 2024 guidance:
We are reiterating the following full year fiscal 2024 guidance:
The potential for changes in macroeconomic conditions, among other risks, could cause actual results to differ materially from those projected. We are unable to reliably forecast special items without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
Second Quarter of Fiscal 2024 Operating Performance
Segment Performance
The table below presents selected financial information (in millions, except as noted) related to our segments’ operational performance for the thirteen week periods ended December 27, 2023 and December 28, 2022:
Chili’s |
Maggiano’s |
||||||||||
Second Quarter |
Variance |
Second Quarter |
Variance |
||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Company sales |
$ 916.9 |
$ 869.3 |
$ 47.6 |
$ 146.8 |
$ 140.1 |
$ 6.7 |
|||||
Franchise revenues |
10.3 |
9.4 |
0.9 |
0.1 |
0.2 |
(0.1) |
|||||
Total revenues |
$ 927.2 |
$ 878.7 |
$ 48.5 |
$ 146.9 |
$ 140.3 |
$ 6.6 |
|||||
Company restaurant expenses(1) |
$ 810.5 |
$ 780.1 |
$ 30.4 |
$ 113.2 |
$ 112.2 |
$ 1.0 |
|||||
Company restaurant expenses as a % of Company sales |
88.4 % |
89.7 % |
(1.3) % |
77.1 % |
80.1 % |
(3.0) % |
|||||
Operating income |
$ 70.1 |
$ 48.4 |
$ 21.7 |
$ 28.2 |
$ 23.0 |
$ 5.2 |
|||||
Operating income as a % of Total revenues |
7.6 % |
5.5 % |
2.1 % |
19.2 % |
16.4 % |
2.8 % |
|||||
Restaurant operating margin, non-GAAP(2) |
$ 106.4 |
$ 89.2 |
$ 17.2 |
$ 33.6 |
$ 27.9 |
$ 5.7 |
|||||
Restaurant operating margin as a % of Company sales, non-GAAP(2) |
11.6 % |
10.3 % |
1.3 % |
22.9 % |
19.9 % |
3.0 % |
(1) |
Company restaurant expenses includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges. |
(2) |
See Non-GAAP Information and Reconciliations section below for more details. |
Chili’s
Maggiano’s
Income Taxes
Webcast Information
Investors and interested parties are invited to listen to today’s conference call, as management will provide further details of the quarter and business updates. The call will be broadcast live on Brinker’s website today, January 31, 2024 at 9 a.m. CDT:
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 at least the end of the day January 31, 2025.
Additional financial information, including statements of income which detail operations excluding special items, and comparable restaurant sales trends by brand, is also available on Brinker’s website under the Financial Information and Events & Presentations sections of the Investor tab.
Forward Calendar
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.
About Brinker
Brinker International, Inc. is one of the world’s leading casual dining restaurant companies and home of Chili’s® Grill & Bar, Maggiano’s Little Italy,® and the It’s Just Wings® virtual brand. Founded in 1975 in Dallas, Texas, we’ve ventured far from home, but stayed true to our roots. Brinker owns, operates or franchises more than 1,600 restaurants in the United States and 29 other countries and two U.S. territories. Our passion is making everyone feel special, and we hope you feel that passion each time you visit one of our restaurants or invite us into your home through takeout or delivery. Learn more about Brinker and its brands at brinker.com.
Forward-Looking Statements
The statements and tables 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. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only based on our current plans and expectations as of the date such statements are made, and we undertake no obligation to update forward-looking statements to reflect events or circumstances arising after the date such statements are made. Forward-looking statements are neither predictions nor guarantees of future events or performance and are subject to risks and uncertainties which could cause actual results to differ materially from our historical results or from those projected in forward-looking statements. Such risks and uncertainties include, among other things, the impact of general economic conditions, including inflation, on economic activity and on our operations; disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, our partners’ supply chains, operations, technology and assets, and our financial performance; the impact of competition; changes in consumer preferences; consumer perception of food safety; reduced consumer discretionary spending; unfavorable publicity; governmental regulations; the Company’s ability to meet its business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management and team members; increasing regulation surrounding wage inflation and competitive labor markets; the impact of social media or other unfavorable publicity; reliance on technology and third party delivery providers; failure to protect the security of data of our guests and team members; product availability and supply chain disruptions; regional business and economic conditions; volatility in consumer, commodity, transportation, labor, currency and capital markets; litigation; franchisee success; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; downgrades in credit ratings; changes in estimates regarding our assets; actions of activist shareholders; failure to comply with new environmental, social and governance (“ESG”) requirements; failure to achieve any goals, targets or objectives with respect to ESG matters; adverse weather conditions; terrorist acts; health epidemics or pandemics; tax reform; inadequate insurance coverage and limitations imposed by our credit agreements as well as the risks and uncertainties described in “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 (Loss) (Unaudited) (In millions, except per share amounts) |
|||||||
Thirteen Week Periods Ended |
Twenty-Six Week Periods Ended |
||||||
December 27, |
December 28, |
December 27, |
December 28, |
||||
Revenues |
|||||||
Company sales |
$ 1,063.7 |
$ 1,009.4 |
$ 2,065.7 |
$ 1,955.5 |
|||
Franchise revenues |
10.4 |
9.6 |
20.9 |
19.0 |
|||
Total revenues |
1,074.1 |
1,019.0 |
2,086.6 |
1,974.5 |
|||
Operating costs and expenses |
|||||||
Food and beverage costs |
273.1 |
289.4 |
531.9 |
578.9 |
|||
Restaurant labor |
356.1 |
334.6 |
704.2 |
665.2 |
|||
Restaurant expenses |
294.7 |
268.4 |
585.5 |
537.2 |
|||
Depreciation and amortization |
41.3 |
41.8 |
83.2 |
83.7 |
|||
General and administrative |
43.2 |
35.6 |
85.6 |
75.1 |
|||
Other (gains) and charges(1) |
3.3 |
8.5 |
9.6 |
13.5 |
|||
Total operating costs and expenses |
1,011.7 |
978.3 |
2,000.0 |
1,953.6 |
|||
Operating income |
62.4 |
40.7 |
86.6 |
20.9 |
|||
Interest expenses |
16.7 |
13.9 |
33.7 |
26.2 |
|||
Other income, net |
(0.1) |
(0.3) |
(0.1) |
(0.7) |
|||
Income (loss) before income taxes |
45.8 |
27.1 |
53.0 |
(4.6) |
|||
Provision (benefit) for income taxes |
3.7 |
(0.8) |
3.7 |
(2.3) |
|||
Net income (loss) |
$ 42.1 |
$ 27.9 |
$ 49.3 |
$ (2.3) |
|||
Basic net income (loss) per share |
$ 0.95 |
$ 0.63 |
$ 1.11 |
$ (0.05) |
|||
Diluted net income (loss) per share |
$ 0.94 |
$ 0.62 |
$ 1.09 |
$ (0.05) |
|||
Basic weighted average shares outstanding |
44.2 |
44.0 |
44.4 |
44.0 |
|||
Diluted weighted average shares outstanding |
44.9 |
44.8 |
45.1 |
44.0 |
|||
Other comprehensive income (loss) |
|||||||
Foreign currency translation adjustment |
$ 0.2 |
$ 0.1 |
$ – |
$ (0.9) |
|||
Comprehensive income (loss) |
$ 42.3 |
$ 28.0 |
$ 49.3 |
$ (3.2) |
(1) |
Other (gains) and charges included in the Consolidated Statements of Comprehensive Income (Loss) (Unaudited) included (in millions): |
Thirteen Week Periods Ended |
Twenty-Six Week Periods Ended |
||||||
December 27, |
December 28, |
December 27, |
December 28, |
||||
Enterprise system implementation costs |
$ 2.1 |
$ 1.0 |
$ 4.1 |
$ 2.0 |
|||
Litigation & claims, net |
1.0 |
0.3 |
3.2 |
0.8 |
|||
Restaurant closure asset write-offs and charges |
0.2 |
3.3 |
0.8 |
4.8 |
|||
Lease contingencies |
– |
– |
0.5 |
– |
|||
Remodel-related asset write-offs |
0.1 |
0.2 |
0.3 |
1.0 |
|||
Gain on the disposition of restaurants |
(0.4) |
– |
(0.4) |
– |
|||
Loss from natural disasters, net of (insurance recoveries) |
(0.6) |
1.1 |
(0.4) |
0.9 |
|||
Other |
0.9 |
2.6 |
1.5 |
4.0 |
|||
Total other (gains) and charges |
$ 3.3 |
$ 8.5 |
$ 9.6 |
$ 13.5 |
BRINKER INTERNATIONAL, INC. Condensed Consolidated Balance Sheets (Unaudited) (In millions) |
|||
December 27, |
June 28, |
||
ASSETS |
|||
Total current assets |
$ 211.3 |
$ 183.3 |
|
Net property and equipment |
818.8 |
808.3 |
|
Operating lease assets |
1,099.9 |
1,134.9 |
|
Deferred income taxes, net |
101.7 |
93.4 |
|
Other assets |
279.0 |
267.1 |
|
Total assets |
$ 2,510.7 |
$ 2,487.0 |
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|||
Total current liabilities |
$ 590.0 |
$ 535.9 |
|
Long-term debt and finance leases, less current installments |
882.4 |
912.2 |
|
Long-term operating lease liabilities, less current portion |
1,087.6 |
1,125.8 |
|
Other liabilities |
60.2 |
57.4 |
|
Total shareholders’ deficit |
(109.5) |
(144.3) |
|
Total liabilities and shareholders’ deficit |
$ 2,510.7 |
$ 2,487.0 |
BRINKER INTERNATIONAL, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) |
|||
Twenty-Six Week Periods Ended |
|||
December 27, |
December 28, |
||
Cash flows from operating activities |
|||
Net income (loss) |
$ 49.3 |
$ (2.3) |
|
Adjustments to reconcile Net income (loss) to Net cash provided by operating activities: |
|||
Depreciation and amortization |
83.2 |
83.7 |
|
Deferred income taxes, net |
(8.4) |
(10.3) |
|
Stock-based compensation |
10.1 |
5.9 |
|
Non-cash other (gains) and charges |
4.3 |
7.2 |
|
Net loss on disposal of assets |
1.5 |
2.1 |
|
Other |
1.3 |
0.9 |
|
Changes in assets and liabilities |
9.0 |
(19.2) |
|
Net cash provided by operating activities |
150.3 |
68.0 |
|
Cash flows from investing activities |
|||
Payments for property and equipment |
(89.5) |
(95.3) |
|
Proceeds from note receivable |
1.3 |
2.1 |
|
Proceeds from sale of assets |
0.7 |
– |
|
Insurance recoveries |
0.7 |
– |
|
Net cash used in investing activities |
(86.8) |
(93.2) |
|
Cash flows from financing activities |
|||
Borrowings on revolving credit facility |
199.0 |
280.0 |
|
Payments on revolving credit facility |
(224.0) |
(240.0) |
|
Payments on long-term debt |
(5.6) |
(11.3) |
|
Purchases of treasury stock |
(25.1) |
(2.1) |
|
Proceeds from issuance of treasury stock |
0.5 |
– |
|
Payments for debt issuance costs |
(0.7) |
– |
|
Payments of dividends |
– |
(0.2) |
|
Net cash (used in) provided by financing activities |
(55.9) |
26.4 |
|
Net change in cash and cash equivalents |
7.6 |
1.2 |
|
Cash and cash equivalents at beginning of period |
15.1 |
13.5 |
|
Cash and cash equivalents at end of period |
$ 22.7 |
$ 14.7 |
BRINKER INTERNATIONAL, INC. Restaurant Summary |
|||||||||
Fiscal 2024 New Openings |
|||||||||
Total Restaurants |
Total Restaurants |
Second Quarter |
Fiscal Year |
Full Year |
|||||
Company-owned restaurants |
|||||||||
Chili’s domestic |
1,130 |
1,126 |
5 |
5 |
10 |
||||
Chili’s international |
4 |
5 |
– |
– |
– |
||||
Maggiano’s domestic |
50 |
51 |
– |
– |
– |
||||
Total Company-owned |
1,184 |
1,182 |
5 |
5 |
10 |
||||
Franchise restaurants |
|||||||||
Chili’s domestic |
100 |
101 |
– |
– |
0-1 |
||||
Chili’s international |
372 |
363 |
11 |
14 |
19-24 |
||||
Maggiano’s domestic |
2 |
2 |
– |
– |
– |
||||
Total franchise |
474 |
466 |
11 |
14 |
19-25 |
||||
Total Company-owned and franchise |
|||||||||
Chili’s domestic |
1,230 |
1,227 |
5 |
5 |
10-11 |
||||
Chili’s international |
376 |
368 |
11 |
14 |
19-24 |
||||
Maggiano’s domestic |
52 |
53 |
– |
– |
– |
||||
Total |
1,658 |
1,648 |
16 |
19 |
29-35 |
NON-GAAP INFORMATION AND RECONCILIATIONS Comparable Restaurant Sales |
|||||||||||||||
Comparable Restaurant |
Price Impact |
Mix-Shift(2) |
Traffic |
||||||||||||
Q2:24 vs 23 |
Q2:23 vs 22 |
Q2:24 vs 23 |
Q2:23 vs 22 |
Q2:24 vs 23 |
Q2:23 vs 22 |
Q2:24 vs 23 |
Q2:23 vs 22 |
||||||||
Company-owned |
5.2 % |
9.7 % |
7.1 % |
9.7 % |
(0.8) % |
5.5 % |
(1.1) % |
(5.5) % |
|||||||
Chili’s |
5.0 % |
8.0 % |
6.6 % |
10.0 % |
(1.0) % |
5.6 % |
(0.6) % |
(7.6) % |
|||||||
Maggiano’s |
6.7 % |
21.2 % |
10.5 % |
7.7 % |
0.4 % |
5.1 % |
(4.2) % |
8.4 % |
|||||||
Franchise(3) |
0.3 % |
6.2 % |
|||||||||||||
U.S. |
6.4 % |
4.1 % |
|||||||||||||
International |
(2.7) % |
7.3 % |
|||||||||||||
Chili’s domestic(4) |
5.1 % |
7.5 % |
|||||||||||||
System-wide(5) |
4.4 % |
9.1 % |
(1) |
Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year. |
(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) |
Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income (Loss) (Unaudited); however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance. |
(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 Chili’s and Maggiano’s Company-owned and franchise-operated restaurants. |
Reconciliation of Net Income Excluding Special Items (in millions, except per share amounts)
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.
Second Quarter |
|||||||
Q2 24 |
EPS Q2 24 |
Q2 23 |
EPS Q2 23 |
||||
Net income, GAAP |
$ 42.1 |
$ 0.94 |
$ 27.9 |
$ 0.62 |
|||
Special items – Other (gains) and charges(1) |
3.3 |
0.07 |
8.5 |
0.19 |
|||
Special items – Depreciation |
0.0 |
– |
0.1 |
– |
|||
Income tax effect related to special items(2) |
(0.8) |
(0.02) |
(2.1) |
(0.04) |
|||
Special items, net of taxes |
2.5 |
0.05 |
6.5 |
0.15 |
|||
Adjustment for special tax items |
0.1 |
0.00 |
(0.3) |
(0.01) |
|||
Net income, excluding special items, non-GAAP |
$ 44.7 |
$ 0.99 |
$ 34.1 |
$ 0.76 |
(1) |
See footnote (1) to the Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for additional details on the composition of Other (gains) and charges. |
(2) |
Income tax effect related to special items is based on the statutory tax rate in effect at the end of each period. |
Reconciliation of Restaurant Operating Margin (in millions, except percentages) Q2 24 |
|||||||||||
Chili’s |
Maggiano’s |
Brinker |
|||||||||
Q2 24 |
Q2 23 |
Q2 24 |
Q2 23 |
Q2 24 |
Q2 23 |
||||||
Operating income, GAAP |
$ 70.1 |
$ 48.4 |
$ 28.2 |
$ 23.0 |
$ 62.4 |
$ 40.7 |
|||||
Operating income as a % of Total revenues |
7.6 % |
5.5 % |
19.2 % |
16.4 % |
5.8 % |
4.0 % |
|||||
Operating income, GAAP |
$ 70.1 |
$ 48.4 |
$ 28.2 |
$ 23.0 |
$ 62.4 |
$ 40.7 |
|||||
Less: Franchise revenues |
(10.3) |
(9.4) |
(0.1) |
(0.2) |
(10.4) |
(9.6) |
|||||
Plus: Depreciation and amortization |
35.5 |
36.0 |
3.2 |
3.3 |
41.3 |
41.8 |
|||||
General and administrative |
10.2 |
8.5 |
2.1 |
1.5 |
43.2 |
35.6 |
|||||
Other (gains) and charges |
0.9 |
5.7 |
0.2 |
0.3 |
3.3 |
8.5 |
|||||
Restaurant operating margin, non-GAAP |
$ 106.4 |
$ 89.2 |
$ 33.6 |
$ 27.9 |
$ 139.8 |
$ 117.0 |
|||||
Restaurant operating margin as a % of Company sales, non-GAAP |
11.6 % |
10.3 % |
22.9 % |
19.9 % |
13.1 % |
11.6 % |
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. This non-GAAP measure is not indicative of overall Company performance and profitability because this measure does not directly accrue benefit to the shareholders due to the nature of costs excluded.
We define Restaurant operating margin as Company sales less Food and beverage costs, Restaurant labor and Restaurant expenses. 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 expenses, Depreciation and amortization, and Other (gains) and charges. Restaurant operating margin as presented may not be comparable to other similarly titled measures of other companies in our industry.
Reconciliation of Adjusted EBITDA (in millions)
Adjusted EBITDA is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to net income as an indicator of financial performance. Brinker believes presenting Adjusted EBITDA provides a useful measure of our operating performance, excluding the impacts of financing costs, capital expenditures and special items. We define Adjusted EBITDA as Net income (loss) before Provision (benefit) for income taxes, Other income, net, Interest expenses, Depreciation and amortization and Other (gains) and charges.
Second Quarter |
YTD |
||||||
Q2 24 |
Q2 23 |
Q2 24 |
Q2 23 |
||||
Net income, GAAP |
$ 42.1 |
$ 27.9 |
$ 49.3 |
$ (2.3) |
|||
Provision (benefit) for income taxes |
3.7 |
(0.8) |
3.7 |
(2.3) |
|||
Other income, net |
(0.1) |
(0.3) |
(0.1) |
(0.7) |
|||
Interest expenses |
16.7 |
13.9 |
33.7 |
26.2 |
|||
Depreciation and amortization |
41.3 |
41.8 |
83.2 |
83.7 |
|||
Other (gains) and charges |
3.3 |
8.5 |
9.6 |
13.5 |
|||
Adjusted EBITDA, non-GAAP |
$ 107.0 |
$ 91.0 |
$ 179.4 |
$ 118.1 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/brinker-international-reports-second-quarter-of-fiscal-2024-results-and-updates-fiscal-2024-guidance-302048751.html
SOURCE Brinker International Payroll Company, L.P.
]]>The fan-favorite grill and bar will debut as the primary sponsor for Spire’s No. 7 Chevy, driven by Corey LaJoie at Daytona
DALLAS, Jan. 23, 2024 — Chili’s® Grill & Bar is off to the races in its new partnership with Spire Motorsports for the upcoming 2024 NASCAR Cup Series race season. Chili’s will be the primary sponsor of Spire’s No. 7 Chevrolet Camaro ZL1 driven by Corey LaJoie, at the Daytona 500 on February 18.
In addition to the season opener, Chili’s will also be showcased as an associate sponsor on February 25 at Atlanta Motor Speedway, March 3 at Las Vegas Motor Speedway and March 24 at Circuit of the Americas in Austin, Texas.
“We strive to partner with brands that want to embrace the spirit of motorsports and share our love for pushing the limits both on and off the track,” said Jeff Dickerson, Spire Motorsports co-owner. “Our partnership with Chili’s at the Daytona 500 will set a fun precedent for the season to come – we can’t wait for everyone to see what we have in store.”
A fan favorite on and off the racetrack, Corey LaJoie is a third-generation racer and fixture in the NASCAR community. Last season was a career year for LaJoie with two top-five and three top-10 finishes in NASCAR’s premier division. He earned a career best fourth-place finish at Atlanta Motor Speedway in March 2023, going on to match that effort at Talladega Superspeedway last fall. Recently named NASCAR Fan Choice’s ‘Best Driver on Social Media’ and host of the popular podcast ‘Stacking Pennies,’ Corey’s fun, genuine and lighthearted personality make him the perfect driver for both Spire Motorsports and Chili’s.
More information about Chili’s sponsorship at the Great American Race and the car design reveal will be announced closer to the race, but for more information about Spire Motorsports, please visit spire-motorsports.com.
About Spire Motorsports
Spire Motorsports is a NASCAR Cup Series and NASCAR CRAFTSMAN Truck Series race team co-owned by long-time NASCAR industry executives Jeff Dickerson and Thaddeus “T.J.” Puchyr. Spire Motorsports earned its inaugural NASCAR Cup Series victory in its first full season of competition when Justin Haley took the checkered flag in the Coke Zero Sugar 400 at Daytona International Speedway on July 7, 2019. Less than three years later, William Byron drove Spire Motorsports’ No. 7 Chevrolet Silverado to its inaugural NASCAR CRAFTSMAN Truck Series win on April 7, 2022, at Martinsville Speedway. The team’s most recent win came on May 20, 2023 when Kyle Larson took the checkered flag in the Tyson 250 at North Wilkesboro Speedway.
About Chili’s® Grill & Bar
Hi, welcome to Chili’s! We are a leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT). We are known for our big mouth burgers, Chicken Crispers®, full-on sizzling fajitas and hand-shaken margaritas. We take our food seriously – but not ourselves – because dining out should feel like a celebration even if there is nothing to celebrate. Our passion is making everyone feel special, and every day, our ChiliHeads make it their job to spread #ChilisLove across our more than 1,600 restaurants in 29 countries and two territories. And Chili’s cares. We host local Give Back Events to support kids, education and hunger and have raised more than $100 million benefiting St. Jude Children’s Research Hospital through generous Guest donations. Find more information about us at chilis.com, follow us on Twitter or Instagram, like us on Facebook or join us on TikTok.
View original content to download multimedia:https://www.prnewswire.com/news-releases/chilis-announces-partnership-with-spire-motorsports-for-2024-race-season-302042070.html
SOURCE Chili’s Grill & Bar
]]>The fan-favorite grill and bar has partnered with one of the most popular groups from the ’90s to create a new version of its jingle
DALLAS, Nov. 14, 2023 — I want my baby back, baby back, baby back we all know how it starts and now, it’s stuck in your head. To celebrate this famous Chili’s jingle more than 25 years after it entered the zeitgeist, Boyz II Men today released their own rendition of the jingle aptly titled “I Want My Baby Back.” The group’s harmonizing skills led many to believe they were the original vocalists of the jingle, so finally, Boyz II Men got a chance to give the original a smooth ’90s-inspired makeover.
“The original Baby Back Ribs Jingle and our fourth studio album Evolution were both released in 1997. This was an unforeseen connection that bonded us to Chili’s and the jingle that year,” said Boyz II Men. “It feels natural for us to re-release the Baby Back Ribs Jingle and pay homage to Chili’s legendary menu item in a nostalgic way. We are excited for our and Chili’s fans to have ‘I Wany My Baby Back’ replaying in their minds for yet another decade.”
The jingle serves as the basis for advertisements that will run across streaming services, online and social media throughout November. In addition, fans are encouraged to use the ‘Duet’ feature on TikTok to add their own flair to the jingle or add it to their favorite playlist on Spotify. For those looking to get their hands on a piece of history, a limited-edition vinyl – featuring the Boyz II Men version of the jingle – and a ’90s-inspired Boyz II Men tour t-shirt are available for purchase via the Chili’s Online Merch shop.
“We are embracing our history and the things that make Chili’s such a beloved brand,” said Chili’s Chief Marketing Officer, George Felix. “This reboot is certainly part of that push as we’re paying respect to the original jingle while having Boyz II Men lend it their Grammy-winning sound. We can’t wait to watch our fans make their own versions of the jingle on TikTok!”
Listen to the jingle on YouTube or the Chili’s Spotify page. Learn more about the campaign at chilis.com/ribs.
About Chili’s® Grill & Bar
Hi, welcome to Chili’s! We are a leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT). We are known for our big mouth burgers, Chicken Crispers, full-on sizzling fajitas and hand-shaken margaritas. We take our food seriously – but not ourselves – because dining out should feel like a celebration even if there is nothing to celebrate. Our passion is making everyone feel special, and every day, our ChiliHeads make it their job to spread #ChilisLove across our more than 1,600 restaurants in 29 countries and two territories. And Chili’s cares. We host local Give Back Events to support kids, education and hunger and have raised more than $100 million benefiting St. Jude Children’s Research Hospital through generous Guest donations. Find more information about us at chilis.com, follow us on Twitter or Instagram, like us on Facebook or join us on TikTok.
View original content to download multimedia:https://www.prnewswire.com/news-releases/chilis-goes-back-to-the-90s-with-boyz-ii-men-to-create-new-version-of-the-brands-iconic-baby-back-ribs-jingle-301987106.html
SOURCE Chili’s Grill & Bar
]]>In honor of BOGO Boneless Wing Mondays, Chili’s will give away the world’s first, 100% authentic Tony Pollard ‘Wing Worn’ Jerseys – plus FREE Boneless Wings
DALLAS, Sept. 21, 2023 — Picture the perfectly preserved centerpiece of any man cave or she shed. Now bathe it in Buffalo sauce. Chili’s has partnered with Pro Bowl Dallas Running Back Tony Pollard to create a sports memorabilia moment unlike any other – jerseys featuring It’s Just Wings Crafted by Chili’s sauces like Buffalo, Honey-Chipotle and Nashville Hot that the NFL superstar wore while filming his new Chili’s commercials.
Starting this Monday, Sept. 25, football fans can enter to win one of these iconic jerseys, plus free Boneless Wings, every Monday for the next month. ‘Wing Worn’ jerseys combine the best parts of football fan culture – the meal and the merch – turning the idea of a highly sought after game-worn jersey into a rare collectible stained with sauce. Guests enjoying BOGO Boneless Wings at their local Chili’s can enter by sharing a picture of the moment on Twitter, using #ChilisWingWornJersey and tagging @chilis. The giveaway runs for four weeks, concluding when Dallas plays on Monday, Oct. 16.
“When Chili’s asked me to use my jersey as a napkin to create these ‘Wing Worn’ jerseys, it was definitely one of the most unique partnership opportunities to come my way,” said Tony Pollard, Dallas Running Back. “I have great memories eating at Chili’s with my family and have always been a huge fan of their wings, especially the Honey-Chipotle, House BBQ and Mango-Habanero. I hope other diehard Chili’s fans get to enjoy what truly is a one-of-a-kind piece of memorabilia.”
Of the jerseys available, three feature the iconic sauce stains of Pollard’s very own hands from his authentic, wing-eating experience, along with his signature. The other twelve are ‘wing signed’ by Pollard – in a variety of the brand’s craveable sauces, of course. Each Wing Worn jersey has been preserved in a frame and comes with an action shot of Pollard enjoying the wings plus a certificate of authenticity. In addition to the rare jersey, winners will also receive free Boneless Wings during every Monday of football season.
“Chili’s is already a go-to destination for football fans, and our BOGO Boneless Wing Mondays and Happy Hour promotions give us the best deal in town for beer, wings, margs and more,” said George Felix, Chief Marketing Officer at Chili’s. “Partnering with Tony Pollard has been a fun nod to our hometown of Dallas and creating our ‘Wing Worn’ jerseys is a way to get our Guests that much more excited about football season.”
Chili’s BOGO Boneless Wing Mondays are available all football season for dine-in, eight-count boneless wings orders. All day, every Monday! To learn more about Chili’s BOGO Boneless Wings promotion and other specials, visit chilis.com/happy-hour.
About Chili’s® Grill & Bar
Hi, welcome to Chili’s! We are a leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT). We are known for our big mouth burgers, Chicken Crispers®, full-on sizzling fajitas and hand-shaken margaritas. We take our food seriously – but not ourselves – because dining out should feel like a celebration even if there is nothing to celebrate. Our passion is making everyone feel special, and every day, our ChiliHeads make it their job to spread #ChilisLove across our more than 1,600 restaurants in 29 countries and two territories. And Chili’s cares. We host local Give Back Events to support kids, education and hunger and have raised more than $100 million benefiting St. Jude Children’s Research Hospital through generous Guest donations. Find more information about us at chilis.com, follow us on Twitter or Instagram, like us on Facebook or join us on TikTok.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sauced-and-signed-tony-pollard-wing-worn-chilis-jerseys-will-be-the-focal-point-of-any-fans-game-worn-collection-301934949.html
SOURCE Chili’s Grill & Bar
]]>VENICE, Fla. –
PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products and products designed to unify indoor/outdoor living spaces, today announced financial results for its second quarter ended July 2, 2022.
Financial Highlights for Second Quarter 2022
(All results reflect comparison to prior-year period; Cash on hand is compared to prior-year end)
Updated Fiscal Year 2022 Guidance
* Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA are non-GAAP measures. Please see “Use of Non-GAAP Financial Measures” below for more information.
“Our very strong second quarter financial results, with year-over-year revenue growth of 42 percent, was driven by continued improvement across our portfolio of brands. The effectiveness of our business model to drive long-term and profitable growth, both organic growth and acquisitions, showed strong during the quarter, and included $39 million in net sales from Anlin Windows & Doors, which we acquired in the fourth quarter of last year,” said Jeff Jackson, President and Chief Executive Officer.
“Organic revenue in our Western region grew 41 percent year-over-year as we continue to gain significant market share and deliver quality products. Organic revenue in our Southeast region grew 27 percent, reflecting strength in our core Florida market and improved lead times stemming from investments in increased operational efficiencies. We achieved 660 basis points of gross margin expansion as operational improvements and pricing actions helped us offset rising costs,” added Jackson.
“Our strong revenue and margin growth benefited from many strategic actions and ongoing strength across the markets we serve,” commented Jackson. “Over the past four years, we acquired Western Window Systems, New South, Eco, and Anlin, which together expanded our geographic footprint and product lines so that we can effectively meet growth in consumer demand for our target markets. I am also extremely proud of our team’s focus on operational excellence, which has reduced lead times, further increased our manufacturing quality, improved safety performance and reduced costs. They are a testament to our value proposition that drives the execution of our long-term strategy.”
“Given the strength of our financial results to date and robust open-orders backlog for the second half, we are raising fiscal year 2022 guidance for net sales in the range of $1.450 billion to $1.525 billion, and Adjusted EBITDA in the range of $250 million to $265 million,” added John Kunz, Senior Vice President and Chief Financial Officer. “We generated strong cash flow in the second quarter of 2022, ending the period with a cash balance of $159 million.”
|
Prior 2022 Guidance* |
Updated 2022 Guidance* |
||
Net sales (in billions) |
$1.350 |
$1.450 |
$1.450 |
$1.525 |
% growth vs. prior year |
16% |
25% |
25% |
31% |
Adj. EBITDA** (in millions) |
$225 |
$250 |
$250 |
$265 |
% growth vs. prior year |
33% |
48% |
48% |
56% |
* 2022 guidance includes Eco at 100% contribution. |
Conference Call
PGT Innovations will host a conference call today at 10:30 a.m. The conference call will be available at the same time through the Investor Relations section of the PGT Innovations, Inc. website, http://ir.pgtinnovations.com/events.cfm.
To participate in the teleconference, kindly dial into the call about 10 minutes before the start time: 833-316-0547 (U.S. toll-free) and 412-317-5728 (International). A replay of the call will be available within approximately one hour after the scheduled end of the call on July 26, 2022, through approximately 12:30 p.m. on August 2, 2022. To access the replay, dial 877-344-7529 (U.S. Only toll-free), 855-669-9658 (Canada Only toll-free) and 412-317-0088 (International) and refer to pass code 3547969. Other international replay dial-in numbers can be obtained at: https://services.choruscall.com/ccforms/replay.html
You may join the conference online by using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=k2gfjtZV.
About PGT Innovations, Inc.
PGT Innovations manufactures and supplies premium windows and doors. Its highly engineered and technically advanced products can withstand some of the toughest weather conditions on earth and are revolutionizing the way people live by unifying indoor and outdoor living spaces. PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves, and a drive to develop category-defining products. The company is also the nation’s largest manufacturer of impact-resistant windows and doors and holds the leadership position in its primary market.
The PGT Innovations’ family of brands include CGI®, PGT® Custom Windows and Doors, WinDoor®, Western Window Systems, Anlin Windows & Doors, Eze-Breeze®, CGI Commercial, NewSouth Window Solutions, and a 75 percent ownership stake in Eco Window Systems. The company’s brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. Their high-quality products are available in custom and standard sizes with massive dimensions that allow for unlimited design possibilities in residential, multi-family, and commercial projects. For additional information, visit www.pgtinnovations.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “assume,” “believe,” “could,” “estimate,” “expect,” “guidance,” “intend,” “many,” “positioned,” “potential,” “project,” “think,” “should,” “target,” “will,” “would” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our acquisition of Anlin; pricing actions benefiting margins; improvement of our operations and business integration; and our Sales and EBITDA guidance.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Use of Non-GAAP Financial Measures
This press release and the financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that presentation of non-GAAP measures such as Adjusted net income, Adjusted net income per share, and Adjusted EBITDA provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. Management also believes these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this press release are provided to give investors access to types of measures that we use in analyzing our results, and for internal planning and forecasting purposes.
Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation. We believe these measures enable investors and analysts to more thoroughly evaluate our current performance as compared to past performance and provide a better baseline for assessing the Company’s future earnings potential. However, these measures do not provide a complete picture of our operations.
Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that Adjusted EBITDA provides useful information to investors and analysts about the Company’s performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments.
Our calculations of Adjusted net income and Adjusted net income per share, and Adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile Adjusted net income, Adjusted net income per share, and Adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release.
We are not able to provide a reconciliation of projected Adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions. Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.
Adjusted EBITDA as used in the calculation of the net debt-to-Adjusted EBITDA ratio, consists of our Adjusted EBITDA as described above, but for the trailing twelve-month period, adjusted pursuant to the covenants contained in the 2016 Credit Agreement due 2022.
PGT INNOVATIONS, INC. |
|
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|||||||||||
(unaudited – in thousands, except per share amounts) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
July 2, |
|
July 3, |
|
July 2, |
|
July 3, |
|
||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||
|
|
|
|
|
|
|
|
|
||||
Net sales |
$ |
406,521 |
|
$ |
285,500 |
|
$ |
765,183 |
|
$ |
556,592 |
|
Cost of sales |
|
241,391 |
|
|
188,491 |
|
|
465,460 |
|
|
365,621 |
|
Gross profit |
|
165,130 |
|
|
97,009 |
|
|
299,723 |
|
|
190,971 |
|
Selling, general and administrative expenses |
|
109,505 |
|
|
75,745 |
|
|
205,387 |
|
|
145,511 |
|
Income from operations |
|
55,625 |
|
|
21,264 |
|
|
94,336 |
|
|
45,460 |
|
Interest expense, net |
|
7,155 |
|
|
7,825 |
|
|
14,235 |
|
|
15,282 |
|
Income before income taxes |
|
48,470 |
|
|
13,439 |
|
|
80,101 |
|
|
30,178 |
|
Income tax expense |
|
12,005 |
|
|
2,726 |
|
|
19,810 |
|
|
6,670 |
|
Net income |
|
36,465 |
|
|
10,713 |
|
|
60,291 |
|
|
23,508 |
|
Less: Net income attributable to redeemable |
|
(304 |
) |
|
(568 |
) |
|
(961 |
) |
|
(979 |
) |
Net income attributable to the Company |
$ |
36,161 |
|
$ |
10,145 |
|
$ |
59,330 |
|
$ |
22,529 |
|
|
|
|
|
|
|
|
|
|
||||
Calculation of net income per common share |
|
|
|
|
|
|
|
|
||||
Net income attributable to the Company |
$ |
36,161 |
|
$ |
10,145 |
|
$ |
59,330 |
|
$ |
22,529 |
|
Change in redemption value of redeemable |
|
351 |
|
|
(3,563 |
) |
|
(1,785 |
) |
|
(3,563 |
) |
Net income attributable to PGT Innovations, |
$ |
36,512 |
|
$ |
6,582 |
|
$ |
57,545 |
|
$ |
18,966 |
|
|
|
|
|
|
|
|
|
|
||||
Net income per common share attributable to |
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.61 |
|
$ |
0.11 |
|
$ |
0.96 |
|
$ |
0.32 |
|
Diluted |
$ |
0.61 |
|
$ |
0.11 |
|
$ |
0.96 |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
||||
Basic |
|
59,928 |
|
|
59,551 |
|
|
59,880 |
|
|
59,418 |
|
Diluted |
|
60,257 |
|
|
60,051 |
|
|
60,241 |
|
|
59,977 |
|
PGT INNOVATIONS, INC. |
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
||||||
(unaudited – in thousands) |
|
||||||
|
|
|
|
|
|
||
|
July 2, |
|
|
January 1, |
|
||
|
2022 |
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
159,261 |
|
|
$ |
96,146 |
|
Accounts receivable, net |
|
178,185 |
|
|
|
141,221 |
|
Inventories |
|
110,245 |
|
|
|
91,440 |
|
Contract assets, net |
|
59,309 |
|
|
|
55,239 |
|
Prepaid expenses and other current assets |
|
28,841 |
|
|
|
37,712 |
|
Total current assets |
|
535,841 |
|
|
|
421,758 |
|
Property, plant and equipment, net |
|
185,597 |
|
|
|
185,266 |
|
Operating lease right-of-use asset, net |
|
95,511 |
|
|
|
91,162 |
|
Intangible assets, net |
|
374,801 |
|
|
|
394,525 |
|
Goodwill |
|
372,652 |
|
|
|
364,598 |
|
Other assets, net |
|
1,963 |
|
|
|
3,301 |
|
Total assets |
$ |
1,566,365 |
|
|
$ |
1,460,610 |
|
|
|
|
|
|
|
||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, |
|
|
|
|
|
||
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable and accrued expenses |
$ |
175,129 |
|
|
$ |
122,681 |
|
Current portion of operating lease liability |
|
14,883 |
|
|
|
13,180 |
|
Total current liabilities |
|
190,012 |
|
|
|
135,861 |
|
Long-term debt |
|
626,266 |
|
|
|
625,655 |
|
Operating lease liability, less current portion |
|
87,514 |
|
|
|
83,903 |
|
Deferred income taxes, net |
|
34,249 |
|
|
|
37,489 |
|
Other liabilities |
|
7,910 |
|
|
|
11,742 |
|
Total liabilities |
|
945,951 |
|
|
|
894,650 |
|
Commitments and contingencies |
|
– |
|
|
|
– |
|
Redeemable non-controlling interest |
|
39,609 |
|
|
|
36,863 |
|
Total shareholders’ equity |
|
580,805 |
|
|
|
529,097 |
|
Total liabilities, redeemable non-controlling interest |
$ |
1,566,365 |
|
|
$ |
1,460,610 |
|
PGT INNOVATIONS, INC. |
|
|||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR |
|
|||||||||||
MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS |
|
|||||||||||
(unaudited – in thousands, except per share amounts and percentages) |
|
|||||||||||
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended |
Six Months Ended |
|
|||||||||
|
July 2, |
|
July 3, |
July 2, |
|
July 3, |
|
|||||
|
2022 |
|
2021 |
2022 |
|
2021 |
|
|||||
Reconciliation to Adjusted Net Income and |
|
|
|
|
|
|
|
|||||
Adjusted Net Income per share – diluted: |
|
|
|
|
|
|
|
|||||
Net income |
$ |
36,465 |
|
$ |
10,713 |
$ |
60,291 |
|
$ |
23,508 |
|
|
Reconciling items: |
|
|
|
|
|
|
|
|||||
Asset impairment charges (1) |
|
1,408 |
|
|
– |
|
2,131 |
|
|
– |
|
|
Adjustments to contingent consideration (2) |
|
3,793 |
|
|
– |
|
4,754 |
|
|
– |
|
|
CGI Commercial relocation costs (3) |
|
277 |
|
|
– |
|
277 |
|
|
– |
|
|
Acquisition-related costs (4) |
|
– |
|
|
– |
|
– |
|
|
672 |
|
|
Business wind-down costs (5) |
|
– |
|
|
– |
|
– |
|
|
4,197 |
|
|
Tax effect of reconciling items |
|
(1,411 |
) |
|
– |
|
(1,843 |
) |
|
(1,205 |
) |
|
Adjusted net income |
$ |
40,532 |
|
$ |
10,713 |
$ |
65,610 |
|
$ |
27,172 |
|
|
Weighted-average diluted shares |
|
60,257 |
|
|
60,051 |
|
60,241 |
|
|
59,977 |
|
|
Adjusted net income per share – diluted |
$ |
0.67 |
|
$ |
0.18 |
$ |
1.09 |
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation to Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||
Depreciation and amortization expense |
$ |
14,475 |
|
$ |
12,802 |
$ |
30,988 |
|
$ |
24,248 |
|
|
Interest expense, net |
|
7,155 |
|
|
7,825 |
|
14,235 |
|
|
15,282 |
|
|
Income tax expense |
|
12,005 |
|
|
2,726 |
|
19,810 |
|
|
6,670 |
|
|
Reversal of tax effect of reconciling items for |
|
|
|
|
|
|
|
|||||
adjusted net income above |
|
1,411 |
|
|
– |
|
1,843 |
|
|
1,205 |
|
|
Stock-based compensation expense |
|
2,704 |
|
|
1,744 |
|
4,909 |
|
|
3,494 |
|
|
Adjusted EBITDA |
$ |
78,282 |
|
$ |
35,810 |
$ |
137,395 |
|
$ |
78,071 |
|
|
Adjusted EBITDA as percentage of net sales |
19.3% |
|
12.5% |
18.0% |
|
14.0% |
|
|||||
|
|
|
|
|
|
|
|
(1) Represents write-offs of property and equipment, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three- and six-month periods ended July 2, 2022. |
||||||||
|
|
|
|
|
|
|
|
|
(2) Represents adjustments to contingent consideration associated with our Anlin Acquisition as required under ASC 805, classified as selling, general and administrative expenses in the accompanying consolidated statement of operations for the three- and six-month periods ended July 2, 2022. |
||||||||
|
|
|
|
|
|
|
|
|
(3) Represents additional costs relating to the relocation of our CGI Commercial business to a new location in the Miami, FL area, being shared with our Eco Enterprises entity, classified as cost of sales in the accompanying consolidated statement of operations for the three- and six-month periods ended July 2, 2022. |
||||||||
|
|
|
|
|
|
|
|
|
(4) Represents costs relating to our acquisition of Eco, classified as selling, general and administrative expenses in the accompanying consolidated statement of operations for the six-month period ended July 3, 2021. |
||||||||
|
|
|
|
|
|
|
|
|
(5) Represents incremental costs related to the wind-down in the first quarter of 2021 of our commercial business acquired in the New South acquisition. Of the $4.2 million of these costs, $2.7 million are classified as cost of sales, and $1.5 million are classified as selling, general and administrative expenses in the accompanying consolidated statement of operations for the six-month period ended July 3, 2021. A portion of these costs may be recoverable through insurance. |
||||||||
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220722005415/en/
Investor Relations:
John Kunz, 941-480-1600
Senior Vice President and CFO
JKunz@PGTInnovations.com
Media Relations:
Stephanie Cz, 941-480-1600
Corporate Communications Manager
DALLAS, April 28, 2021 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced results for the third quarter of fiscal 2021 ended March 24, 2021, and provided a financial update for the fourth quarter of fiscal 2021.
“I am very pleased with the ongoing growth of our business as our guests are able to return in greater numbers to Chili’s and Maggiano’s dining rooms,” said Wyman Roberts, CEO and President. “This reopening trend, supported by investment in our digital platforms and virtual brands, now has us meaningfully outperforming our F19 sales and traffic results.”
Fiscal 2021 Highlights – Third Quarter
The third quarter of fiscal 2021 results reflect the continued impact from the COVID-19 pandemic. At the end of the third quarter, substantially all of our Company-owned restaurant dining rooms or patios were open in some capacity in accordance with state and local mandates.
For comparable restaurant sales details and non-GAAP reconciliations, please refer to the Non-GAAP Information and Reconciliations section of this release.
Comparable Restaurant Sales for Selected Periods in Fiscal 2021 vs. Fiscal 2019
The following table compares fiscal 2021 to fiscal 2019 due to the impact of the pandemic on fiscal 2020 sales:
Comparable Restaurant Sales |
|||||||||||
January |
February |
March |
MTD April |
||||||||
Brinker |
(11.4) |
% |
(12.6) |
% |
(1.8) |
% |
6.3 |
% |
|||
Chili’s |
(6.7) |
% |
(8.8) |
% |
2.0 |
% |
10.1 |
% |
|||
Maggiano’s |
(41.0) |
% |
(38.0) |
% |
(29.5) |
% |
(19.7) |
% |
Comparable restaurant sales includes restaurants that are currently open and had been open under the Company’s ownership at least six months at the beginning of the third quarter of fiscal 2019.
Financial Metrics
Third Quarter |
||||||||||
2021 |
2020 |
% Change |
||||||||
Company sales |
$ |
813.7 |
$ |
840.4 |
(3.2) |
% |
||||
Total revenues |
$ |
828.4 |
$ |
860.0 |
(3.7) |
% |
||||
Operating income |
$ |
52.2 |
$ |
41.1 |
27.0 |
% |
||||
Operating income as a percentage of Total revenues |
6.3 |
% |
4.8 |
% |
1.5 |
% |
||||
Restaurant operating margin, non-GAAP(1) |
$ |
112.9 |
$ |
107.6 |
4.9 |
% |
||||
Restaurant operating margin as a percentage of Company sales, non-GAAP |
13.9 |
% |
12.8 |
% |
1.1 |
% |
||||
Net income per diluted share(2) |
$ |
0.73 |
$ |
0.81 |
(9.9) |
% |
||||
Net income per diluted share, excluding special items, non-GAAP(2) |
$ |
0.78 |
$ |
1.28 |
(39.1) |
% |
Comparable Restaurant Sales – Company Owned |
Q3:21 vs 20 |
Q3:20 vs 19 |
|||
Brinker |
(3.3) |
% |
(5.9) |
% |
|
Chili’s |
0.0 |
% |
(5.3) |
% |
|
Maggiano’s |
(29.6) |
% |
(9.9) |
% |
(1) |
Restaurant operating margin is defined as Company sales less Company restaurant expenses which includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges (see non-GAAP reconciliation below). |
(2) |
Net income per diluted share reflects the impact of 8.1 million shares of common stock sold in an offering in the fourth quarter of fiscal 2020. |
Fourth Quarter of Fiscal 2021 Guidance
We are providing a financial outlook for the fourth quarter of fiscal 2021. The uncertainties created by the ongoing COVID-19 pandemic, as well as other risks and uncertainties, could cause actual results to differ materially from those projected.
Fiscal 2021 is a 53-week year, and includes an extra operating week in the fourth quarter.
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 during fiscal 2021, reconciliations to the appropriate GAAP measures will be provided.
Third Quarter of Fiscal 2021 Operating Performance
Segment Performance
The table below presents selected financial information (in millions, except as noted) related to our segments’ operational performance for the thirteen week periods ended March 24, 2021 and March 25, 2020:
Chili’s |
Maggiano’s |
||||||||||||||||||||||
Third Quarter |
Variance |
Third Quarter |
Variance |
||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||||||||||
Company sales |
$ |
749.0 |
$ |
748.7 |
$ |
0.3 |
$ |
64.7 |
$ |
91.7 |
$ |
(27.0) |
|||||||||||
Franchise and other revenues |
14.0 |
15.7 |
(1.7) |
0.7 |
3.9 |
(3.2) |
|||||||||||||||||
Total revenues |
$ |
763.0 |
$ |
764.4 |
$ |
(1.4) |
$ |
65.4 |
$ |
95.6 |
$ |
(30.2) |
|||||||||||
Operating income |
$ |
80.3 |
$ |
58.7 |
$ |
21.6 |
$ |
1.4 |
$ |
4.0 |
$ |
(2.6) |
|||||||||||
Operating income as a % of Total revenues |
10.5 |
% |
7.7 |
% |
2.8 |
% |
2.1 |
% |
4.2 |
% |
(2.1) |
% |
|||||||||||
Company restaurant expenses(1) |
$ |
641.6 |
$ |
648.4 |
$ |
(6.8) |
$ |
59.0 |
$ |
84.3 |
$ |
(25.3) |
|||||||||||
Company restaurant expenses as a % of Company sales |
85.7 |
% |
86.6 |
% |
(0.9) |
% |
91.2 |
% |
91.9 |
% |
(0.7) |
% |
|||||||||||
Restaurant operating margin – non-GAAP |
$ |
107.4 |
$ |
100.3 |
$ |
7.1 |
$ |
5.7 |
$ |
7.4 |
$ |
(1.7) |
|||||||||||
Restaurant operating margin as a % of Company sales – non-GAAP |
14.3 |
% |
13.4 |
% |
0.9 |
% |
8.8 |
% |
8.1 |
% |
0.7 |
% |
(1) |
Company restaurant expenses includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges. |
Chili’s
Maggiano’s
Franchise and other revenues
Income Taxes
Webcast Information
Investors and interested parties are invited to listen to today’s conference call, as management will provide further details of the quarter and business updates. The call will broadcast live on Brinker’s website today, April 28, 2021 at 9 a.m. CDT:
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 May 12, 2021.
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
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.
About Brinker
Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Based in Dallas, Texas, as of March 24, 2021, Brinker owned, operated, or franchised 1,657 restaurants under the names Chili’s® Grill & Bar (1,603 restaurants) and Maggiano’s Little Italy® (54 restaurants).
Forward-Looking Statements
The statements and tables 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, and are currently, or in the future could be, amplified by the novel strain of the coronavirus (“COVID-19”) pandemic. Such risks and uncertainties include, among other things, uncertainty of the magnitude, duration, geographic reach and impact of the COVID-19 pandemic on local, national and global economies; the current, and uncertain future, impact of the COVID-19 pandemic and governments’ responses to it on our industry, business, growth, reputation, projections, prospects, financial condition, operations, cash flows, and liquidity; the adequacy or effectiveness of steps we take to respond to the COVID-19 crisis, including cost reduction or other mitigation programs; the impact of competition; changes in consumer preferences; consumer perception of food safety; reduced disposable income; unfavorable publicity; increased minimum wages; governmental regulations; the impact of mergers, acquisitions, divestitures and other strategic transactions; the Company’s ability to meet its business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management; the impact of social media; failure to protect the security of data of our guests and team members; product availability; regional business and economic conditions; litigation; franchisee success; inflation; changes in the retail industry; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; actions of activist shareholders; adverse weather conditions; terrorist acts; health epidemics or pandemics (such as COVID-19); and tax reform; as well as the risks and uncertainties described in “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 (Unaudited) |
|||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||
Thirteen Week Periods Ended |
Thirty-Nine Week Periods Ended |
||||||||||||||
March 24, 2021 |
March 25, 2020 |
March 24, 2021 |
March 25, 2020 |
||||||||||||
Revenues |
|||||||||||||||
Company sales |
$ |
813.7 |
$ |
840.4 |
$ |
2,288.1 |
$ |
2,451.8 |
|||||||
Franchise and other revenues(1) |
14.7 |
19.6 |
41.1 |
63.5 |
|||||||||||
Total revenues |
828.4 |
860.0 |
2,329.2 |
2,515.3 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Food and beverage costs |
213.9 |
226.7 |
606.3 |
653.6 |
|||||||||||
Restaurant labor |
270.8 |
285.9 |
774.6 |
846.2 |
|||||||||||
Restaurant expenses |
216.1 |
220.2 |
629.9 |
652.2 |
|||||||||||
Depreciation and amortization |
37.4 |
43.5 |
112.0 |
120.9 |
|||||||||||
General and administrative |
33.7 |
23.3 |
94.2 |
95.9 |
|||||||||||
Other (gains) and charges(2) |
4.3 |
19.3 |
13.5 |
30.7 |
|||||||||||
Total operating costs and expenses |
776.2 |
818.9 |
2,230.5 |
2,399.5 |
|||||||||||
Operating income |
52.2 |
41.1 |
98.7 |
115.8 |
|||||||||||
Interest expenses |
14.1 |
14.3 |
43.1 |
44.2 |
|||||||||||
Other income, net |
(0.3) |
(0.4) |
(1.2) |
(1.4) |
|||||||||||
Income before income taxes |
38.4 |
27.2 |
56.8 |
73.0 |
|||||||||||
Provision (benefit) for income taxes |
4.5 |
(3.6) |
0.2 |
(0.6) |
|||||||||||
Net income |
$ |
33.9 |
$ |
30.8 |
$ |
56.6 |
$ |
73.6 |
|||||||
Basic net income per share |
$ |
0.74 |
$ |
0.83 |
$ |
1.25 |
$ |
1.97 |
|||||||
Diluted net income per share |
$ |
0.73 |
$ |
0.81 |
$ |
1.22 |
$ |
1.94 |
|||||||
Basic weighted average shares outstanding |
45.5 |
37.2 |
45.3 |
37.3 |
|||||||||||
Diluted weighted average shares outstanding |
46.7 |
37.8 |
46.2 |
38.0 |
|||||||||||
Other comprehensive income (loss) |
|||||||||||||||
Foreign currency translation adjustments(3) |
$ |
0.3 |
$ |
(1.0) |
$ |
1.1 |
$ |
(1.1) |
|||||||
Other comprehensive income (loss) |
0.3 |
(1.0) |
1.1 |
(1.1) |
|||||||||||
Comprehensive income |
$ |
34.2 |
$ |
29.8 |
$ |
57.7 |
$ |
72.5 |
(1) |
Franchise and other revenues include royalties, delivery service income, gift card breakage, franchise advertising fees, digital entertainment revenues, Maggiano’s banquet service charge income, franchise and development fees, gift card discount costs from third-party gift card sales and merchandise income. |
(2) |
Other (gains) and charges included in the Consolidated Statements of Comprehensive Income (Unaudited) included (in millions): |
Thirteen Week Periods Ended |
Thirty-Nine Week Periods Ended |
||||||||||||||
March 24, 2021 |
March 25, 2020 |
March 24, 2021 |
March 25, 2020 |
||||||||||||
Loss from natural disasters, net of (insurance recoveries) |
$ |
1.8 |
$ |
(0.9) |
$ |
2.0 |
$ |
(0.6) |
|||||||
Remodel-related costs |
0.9 |
0.6 |
1.8 |
2.1 |
|||||||||||
COVID-19 related charges |
0.9 |
16.1 |
3.1 |
16.1 |
|||||||||||
Restaurant closure charges |
0.3 |
0.3 |
2.2 |
3.4 |
|||||||||||
Foreign currency transaction (gain) loss |
0.1 |
2.3 |
(0.3) |
2.2 |
|||||||||||
Restaurant impairment charges |
– |
– |
2.5 |
4.6 |
|||||||||||
Lease modification gain, net |
– |
– |
(0.5) |
(3.1) |
|||||||||||
Acquisition of franchise restaurants costs, net |
– |
1.1 |
– |
2.6 |
|||||||||||
Other |
0.3 |
(0.2) |
2.7 |
3.4 |
|||||||||||
$ |
4.3 |
$ |
19.3 |
$ |
13.5 |
$ |
30.7 |
(3) |
Foreign currency translation adjustment included in our Comprehensive income in the Consolidated Statements of Comprehensive Income (Unaudited) represents the unrealized impact of translating the financial statements of our Canadian restaurants from Canadian dollars to U.S. dollars. This amount is not included in Net income and would only be realized upon disposition of these restaurants. |
BRINKER INTERNATIONAL, INC. |
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(In millions) |
|||||||
March 24, 2021 |
June 24, 2020 |
||||||
ASSETS |
|||||||
Total current assets |
$ |
252.4 |
$ |
224.4 |
|||
Net property and equipment |
751.6 |
805.3 |
|||||
Operating lease assets |
1,025.8 |
1,054.6 |
|||||
Deferred income taxes, net |
47.5 |
38.2 |
|||||
Other assets |
231.7 |
233.5 |
|||||
Total assets |
$ |
2,309.0 |
$ |
2,356.0 |
|||
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|||||||
Total current liabilities |
$ |
577.8 |
$ |
497.9 |
|||
Long-term debt and finance leases, less current installments |
1,017.0 |
1,208.5 |
|||||
Long-term operating lease liabilities, less current portion |
1,023.7 |
1,061.6 |
|||||
Other liabilities |
81.1 |
67.1 |
|||||
Total shareholders’ deficit |
(390.6) |
(479.1) |
|||||
Total liabilities and shareholders’ deficit |
$ |
2,309.0 |
$ |
2,356.0 |
Of the 1,120 Company-owned restaurants, at March 24, 2021, we own both the building and land for 42 restaurants. The related book values associated with these restaurants included land of $33.1 million and buildings of $11.6 million.
BRINKER INTERNATIONAL, INC. |
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
(In millions) |
|||||||
Thirty-Nine Week Periods Ended |
|||||||
March 24, 2021 |
March 25, 2020 |
||||||
Cash flows from operating activities |
|||||||
Net income |
$ |
56.6 |
$ |
73.6 |
|||
Adjustments to reconcile Net income to Net cash provided by operating activities: |
|||||||
Depreciation and amortization |
112.0 |
120.9 |
|||||
Stock-based compensation |
11.3 |
9.0 |
|||||
Restructure and impairment charges |
6.5 |
24.8 |
|||||
Net loss on disposal of assets |
1.1 |
1.1 |
|||||
Other |
2.7 |
1.7 |
|||||
Changes in assets and liabilities |
78.4 |
6.7 |
|||||
Net cash provided by operating activities |
268.6 |
237.8 |
|||||
Cash flows from investing activities |
|||||||
Payments for property and equipment |
(62.4) |
(82.0) |
|||||
Proceeds from sale of assets |
1.6 |
1.0 |
|||||
Proceeds from note receivable |
1.5 |
2.2 |
|||||
Payments for franchise restaurant acquisitions |
– |
(94.6) |
|||||
Net cash used in investing activities |
(59.3) |
(173.4) |
|||||
Cash flows from financing activities |
|||||||
Payments on revolving credit facility |
(210.0) |
(630.0) |
|||||
Borrowings on revolving credit facility |
28.4 |
806.8 |
|||||
Payments on long-term debt |
(14.3) |
(12.4) |
|||||
Purchases of treasury stock |
(4.1) |
(32.3) |
|||||
Payments for debt issuance costs |
(2.2) |
(1.0) |
|||||
Payments of dividends |
(1.5) |
(43.3) |
|||||
Proceeds from issuance of treasury stock |
14.1 |
1.6 |
|||||
Net cash (used in) provided by financing activities |
(189.6) |
89.4 |
|||||
Net change in cash and cash equivalents |
19.7 |
153.8 |
|||||
Cash and cash equivalents at beginning of period |
43.9 |
13.4 |
|||||
Cash and cash equivalents at end of period |
$ |
63.6 |
$ |
167.2 |
BRINKER INTERNATIONAL, INC. |
||||||||||||||
Restaurant Summary |
||||||||||||||
New Openings |
||||||||||||||
Fiscal 2021 |
||||||||||||||
Total Restaurants Open at March 24, 2021 |
Total Restaurants Open at March 25, 2020 |
Third Quarter Openings |
Fiscal Year Openings |
Full Year Projected Openings |
||||||||||
Company-owned restaurants |
||||||||||||||
Chili’s domestic |
1,063 |
1,060 |
2 |
6 |
8 |
|||||||||
Chili’s international |
5 |
5 |
– |
– |
– |
|||||||||
Maggiano’s domestic |
52 |
52 |
– |
– |
– |
|||||||||
Total Company-owned |
1,120 |
1,117 |
2 |
6 |
8 |
|||||||||
Franchise restaurants |
||||||||||||||
Chili’s domestic |
172 |
178 |
2 |
3 |
3 |
|||||||||
Chili’s international |
363 |
379 |
2 |
6 |
7 |
|||||||||
Maggiano’s domestic |
2 |
1 |
– |
1 |
1 |
|||||||||
Total franchise |
537 |
558 |
4 |
10 |
11 |
|||||||||
Total Company-owned and franchise |
||||||||||||||
Chili’s domestic |
1,235 |
1,238 |
4 |
9 |
11 |
|||||||||
Chili’s international |
368 |
384 |
2 |
6 |
7 |
|||||||||
Maggiano’s domestic |
54 |
53 |
– |
1 |
1 |
|||||||||
Total |
1,657 |
1,675 |
6 |
16 |
19 |
|||||||||
Relocation Openings |
||||||||||||||
Chili’s domestic Company-owned relocations |
– |
2 |
2 |
NON-GAAP INFORMATION AND RECONCILIATIONS |
|||||||||||||||||||||||
Comparable Restaurant Sales |
|||||||||||||||||||||||
Q3 21 and Q3 20 |
|||||||||||||||||||||||
Comparable Restaurant Sales(1) |
Price Impact |
Mix-Shift(3) |
Traffic |
||||||||||||||||||||
Q3:21 vs 20(2) |
Q3:20 vs 19 |
Q3:21 vs 20 |
Q3:20 vs 19 |
Q3:21 vs 20 |
Q3:20 vs 19 |
Q3:21 vs 20 |
Q3:20 vs 19 |
||||||||||||||||
Company-owned |
(3.3) |
% |
(5.9) |
% |
0.6 |
% |
1.0 |
% |
(6.2) |
% |
(0.1) |
% |
2.3 |
% |
(6.8) |
% |
|||||||
Chili’s |
0.0 |
% |
(5.3) |
% |
0.5 |
% |
0.9 |
% |
(4.5) |
% |
0.3 |
% |
4.0 |
% |
(6.5) |
% |
|||||||
Maggiano’s |
(29.6) |
% |
(9.9) |
% |
1.2 |
% |
1.8 |
% |
(9.2) |
% |
(1.5) |
% |
(21.6) |
% |
(10.2) |
% |
|||||||
Chili’s franchise(4) |
0.2 |
% |
(7.7) |
% |
|||||||||||||||||||
U.S. |
5.2 |
% |
(6.3) |
% |
|||||||||||||||||||
International |
(8.8) |
% |
(9.5) |
% |
|||||||||||||||||||
Chili’s domestic(5) |
0.6 |
% |
(5.4) |
% |
|||||||||||||||||||
System-wide(6) |
(2.8) |
% |
(6.2) |
% |
(1) |
Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 months except acquired restaurants which are included after 12 months of ownership. Restaurants temporarily closed 14 days or more are excluded from comparable restaurant sales. Percentage amounts are calculated based on the comparable periods year-over-year. |
(2) |
Comparable Restaurant Sales for Q3:21 vs 20 include the results of It’s Just Wings, a virtual brand launched nationally in June 2020. |
(3) |
Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests. |
(4) |
Chili’s franchise sales generated by franchisees are not included in revenues in the Consolidated Statements of Comprehensive Income (Unaudited); however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Chili’s franchise comparable restaurant sales provides investors relevant information regarding total brand performance. |
(5) |
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. |
(6) |
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. |
Reconciliation of Net Income Excluding Special Items (in millions, except per share amounts)
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.
Third Quarter |
|||||||||||||||
Q3 21 |
EPS Q3 21 |
Q3 20 |
EPS Q3 20 |
||||||||||||
Net income – GAAP |
$ |
33.9 |
$ |
0.73 |
$ |
30.8 |
$ |
0.81 |
|||||||
Special items(1) |
4.4 |
0.09 |
23.7 |
0.63 |
|||||||||||
Income tax effect related to special items(2) |
(1.1) |
(0.02) |
(6.0) |
(0.16) |
|||||||||||
Special items, net of taxes |
3.3 |
0.07 |
17.7 |
0.47 |
|||||||||||
Adjustment for special tax items(3) |
(0.8) |
(0.02) |
0.0 |
0.00 |
|||||||||||
Net income, excluding special items – Non-GAAP |
$ |
36.4 |
$ |
0.78 |
$ |
48.5 |
$ |
1.28 |
(1) |
Special items in the third quarter of fiscal 2021 consist of a charge of $4.3 million in Other (gains) and charges and $0.1 million of incremental depreciation expenses associated with a change in estimated useful life of certain restaurant-level long-lived assets. Special items in the third quarter of fiscal 2020 consist of $19.3 million in Other (gains) and charges that includes charges primarily related to the COVID-19 pandemic and $4.4 million of incremental depreciation expenses associated with a change in estimated useful life of certain restaurant-level long-lived assets. |
(2) |
Income tax effect related to special items is based on the statutory tax rate in effect at the end of each period presented. |
(3) |
Adjustment for special tax items in the third quarter of fiscal 2021 primarily related to excess tax windfalls associated with stock-based compensation. Adjustment for special tax items in the third quarter of fiscal 2020 was negligible. |
Reconciliation of Restaurant Operating Margin (in millions, except percentages)
Chili’s |
Maggiano’s |
Brinker |
|||||||||||||||||||||
Q3 21 |
Q3 20 |
Q3 21 |
Q3 20 |
Q3 21 |
Q3 20 |
||||||||||||||||||
Operating income – GAAP |
$ |
80.3 |
$ |
58.7 |
$ |
1.4 |
$ |
4.0 |
$ |
52.2 |
$ |
41.1 |
|||||||||||
Operating income as a percentage of Total revenues |
10.5 |
% |
7.7 |
% |
2.1 |
% |
4.2 |
% |
6.3 |
% |
4.8 |
% |
|||||||||||
Operating income – GAAP |
$ |
80.3 |
$ |
58.7 |
$ |
1.4 |
$ |
4.0 |
$ |
52.2 |
$ |
41.1 |
|||||||||||
Less: Franchise and other revenues |
(14.0) |
(15.7) |
(0.7) |
(3.9) |
(14.7) |
(19.6) |
|||||||||||||||||
Plus: Depreciation and amortization |
31.0 |
36.5 |
3.4 |
3.8 |
37.4 |
43.5 |
|||||||||||||||||
General and administrative |
7.0 |
5.9 |
1.3 |
1.1 |
33.7 |
23.3 |
|||||||||||||||||
Other (gains) and charges |
3.1 |
14.9 |
0.3 |
2.4 |
4.3 |
19.3 |
|||||||||||||||||
Restaurant operating margin – non-GAAP |
$ |
107.4 |
$ |
100.3 |
$ |
5.7 |
$ |
7.4 |
$ |
112.9 |
$ |
107.6 |
|||||||||||
Restaurant operating margin as a percentage of Company sales |
14.3 |
% |
13.4 |
% |
8.8 |
% |
8.1 |
% |
13.9 |
% |
12.8 |
% |
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. This non-GAAP measure is not indicative of overall Company performance and profitability because this measure does not directly accrue benefit to the shareholders due to the nature of costs excluded. We define Restaurant operating margin as Company sales less Food and beverage costs, Restaurant labor and Restaurant expenses. 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 expenses, Depreciation and amortization, and Other (gains) and charges.
Restaurant operating margin excludes Franchise and other revenues which are earned primarily from franchise royalties, advertising fees, and other non-food and beverage revenues streams such as delivery service income, gift card breakage, banquet service charges and digital entertainment revenues. Depreciation and amortization expenses, substantially all of which are related to restaurant-level assets, are excluded because such expenses represent historical costs which do not reflect current cash outlays for the restaurants. General and administrative expenses include primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices and are 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.
Reconciliation of Free Cash Flow (in millions)
Brinker believes presenting free cash flow provides a useful measure to evaluate the cash flow available for reinvestment after considering the capital requirements and expenditures of our business operations.
Thirty-Nine Week |
|||
Cash flows provided by operating activities – GAAP |
$ |
268.6 |
|
Capital expenditures |
(62.4) |
||
Free cash flow – non-GAAP |
$ |
206.2 |
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SOURCE Brinker International, Inc.
]]>DALLAS –
Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2021.
For the three months ended January 31, 2021, revenue, gross profit, and net income were $617.0 million, $307.5 million, and $193.4 million, respectively. These represent an increase in revenue of $41.9 million, or 7.3%; an increase in gross profit of $47.6 million, or 18.3%; and an increase in net income of $24.7 million, or 14.7%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.81 compared to $0.71 last year, an increase of 14.1%.
For the six months ended January 31, 2021, revenue, gross profit, and net income were $1.2 billion, $604.3 million, and $393.7 million, respectively. These represent an increase in revenue of $80.4 million, or 7.1%; an increase in gross profit of $89.5 million, or 17.4%; and an increase in net income of $6.8 million, or 1.8%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $1.64 compared to $1.62 last year, an increase of 1.2%.
Excluding the impact of discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, non-GAAP fully diluted earnings per share for the three months ended January 31, 2021 and 2020, were $0.80, and $0.64, respectively, which was an increase of 25.0%. Excluding the impact of discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, non-GAAP fully diluted earnings per share for the six months ended January 31, 2021 and 2020, were $1.58, and $1.29, respectively, which was an increase of 22.5%. A reconciliation of non-GAAP financial measures to the most directly comparable financial measures computed in accordance with U.S. generally accepted accounting principles (GAAP) can be found in the tables attached to this press release.
On Friday, February 19, 2021, at 11 a.m. Eastern Time, Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live and can be accessed at http://public.viavid.com/index.php?id=143555 or via hyperlink at www.copart.com/investorrelations. A replay of the call will be available through May 2021 by visiting www.copart.com/investorrelations or http://public.viavid.com/index.php?id=143555.
About Copart
Copart, Inc., founded in 1982, is a global leader in online vehicle auctions. Copart’s innovative technology and online auction platform links sellers to more than 750,000 Members in over 170 countries. Copart offers services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters, and in some jurisdictions, to the general public. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers and individuals. With operations at over 200 locations in 11 countries, Copart has more than 175,000 vehicles available online every day. Copart currently operates in the United States (Copart.com), Canada (Copart.ca), the United Kingdom (Copart.co.uk), Brazil (Copart.com.br), the Republic of Ireland (Copart.ie), Germany (Copart.de), Finland (Copart.fi), the United Arab Emirates, Oman and Bahrain (Copartmea.com), and Spain (Copart.es). For more information, or to become a Member, visit Copart.com/Register.
Copart, Inc.
Use of Non-GAAP Financial Measures
Included in this release are certain non-GAAP financial measures, including non-GAAP net income per diluted share, which exclude the impact of discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises. These non-GAAP financial measures do not represent alternative financial measures under GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Furthermore, these non-GAAP financial measures do not reflect a comprehensive view of Copart’s operations in accordance with GAAP and should only be read in conjunction with the corresponding GAAP financial measures. This information constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission. Accordingly, Copart has presented herein, and will present in other information it publishes that contains these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
Copart believes the presentation of non-GAAP net income per diluted share included in this release in conjunction with the corresponding GAAP financial measures provides meaningful information for investors, analysts and management in assessing Copart’s business trends and financial performance. From a financial planning and analysis perspective, Copart management analyzes its operating results with and without the impact of discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises.
Cautionary Note About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning the potential impact of the COVID-19 pandemic on our business, operations, and operating results. These forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the “Management’s Discussion and Analysis” and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.
Copart, Inc. Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Service revenues and vehicle sales: |
|
|
|
|
|
|
|
|
||||||||
Service revenues |
|
$ |
532,601 |
|
|
$ |
510,034 |
|
|
$ |
1,047,973 |
|
|
$ |
997,890 |
|
Vehicle sales |
|
84,430 |
|
|
65,106 |
|
|
161,998 |
|
|
131,674 |
|
||||
Total service revenues and vehicle sales |
|
617,031 |
|
|
575,140 |
|
|
1,209,971 |
|
|
1,129,564 |
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Yard operations |
|
208,910 |
|
|
237,683 |
|
|
415,896 |
|
|
460,562 |
|
||||
Cost of vehicle sales |
|
73,629 |
|
|
57,900 |
|
|
137,989 |
|
|
116,664 |
|
||||
Yard depreciation and amortization |
|
25,180 |
|
|
18,231 |
|
|
48,474 |
|
|
35,051 |
|
||||
Yard stock-based compensation |
|
1,814 |
|
|
1,437 |
|
|
3,345 |
|
|
2,529 |
|
||||
Gross profit |
|
307,498 |
|
|
259,889 |
|
|
604,267 |
|
|
514,758 |
|
||||
General and administrative |
|
36,014 |
|
|
39,242 |
|
|
71,152 |
|
|
78,085 |
|
||||
General and administrative depreciation and amortization |
|
6,212 |
|
|
6,051 |
|
|
11,867 |
|
|
12,245 |
|
||||
General and administrative stock-based compensation |
|
7,051 |
|
|
4,704 |
|
|
14,433 |
|
|
9,145 |
|
||||
Total operating expenses |
|
358,810 |
|
|
365,248 |
|
|
703,156 |
|
|
714,281 |
|
||||
Operating income |
|
258,221 |
|
|
209,892 |
|
|
506,815 |
|
|
415,283 |
|
||||
Other expense: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(4,849) |
|
|
(4,464) |
|
|
(9,881) |
|
|
(8,490) |
|
||||
Other income, net |
|
(920) |
|
|
(354) |
|
|
2,333 |
|
|
363 |
|
||||
Total other expense |
|
(5,769) |
|
|
(4,818) |
|
|
(7,548) |
|
|
(8,127) |
|
||||
Income before income taxes |
|
252,452 |
|
|
205,074 |
|
|
499,267 |
|
|
407,156 |
|
||||
Income tax expense |
|
59,012 |
|
|
36,367 |
|
|
105,542 |
|
|
20,269 |
|
||||
Net income |
|
$ |
193,440 |
|
|
$ |
168,707 |
|
|
$ |
393,725 |
|
|
$ |
386,887 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share |
|
$ |
0.82 |
|
|
$ |
0.73 |
|
|
$ |
1.67 |
|
|
$ |
1.67 |
|
Weighted average common shares outstanding |
|
236,152 |
|
|
232,671 |
|
|
235,971 |
|
|
231,920 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share |
|
$ |
0.81 |
|
|
$ |
0.71 |
|
|
$ |
1.64 |
|
|
$ |
1.62 |
|
Diluted weighted average common shares outstanding |
|
240,280 |
|
|
238,470 |
|
|
240,124 |
|
|
238,566 |
|
Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited) |
||||||||
|
|
January 31, 2021 |
|
July 31, 2020 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash, cash equivalents, and restricted cash |
|
$ |
616,403 |
|
|
$ |
477,718 |
|
Accounts receivable, net |
|
462,405 |
|
|
350,207 |
|
||
Vehicle pooling costs |
|
92,928 |
|
|
73,684 |
|
||
Inventories |
|
30,203 |
|
|
20,080 |
|
||
Income taxes receivable |
|
6,498 |
|
|
26,740 |
|
||
Prepaid expenses and other assets |
|
17,030 |
|
|
15,330 |
|
||
Total current assets |
|
1,225,467 |
|
|
963,759 |
|
||
Property and equipment, net |
|
2,175,346 |
|
|
1,941,719 |
|
||
Operating lease right-of-use assets |
|
107,602 |
|
|
118,455 |
|
||
Intangibles, net |
|
44,270 |
|
|
47,772 |
|
||
Goodwill |
|
346,966 |
|
|
343,622 |
|
||
Deferred income taxes |
|
221 |
|
|
213 |
|
||
Other assets |
|
34,566 |
|
|
39,721 |
|
||
Total assets |
|
$ |
3,934,438 |
|
|
$ |
3,455,261 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
324,108 |
|
|
$ |
318,530 |
|
Deferred revenue |
|
14,431 |
|
|
8,233 |
|
||
Income taxes payable |
|
8,672 |
|
|
3,709 |
|
||
Current portion of operating lease liabilities |
|
22,554 |
|
|
24,821 |
|
||
Current portion of finance lease liabilities |
|
1,250 |
|
|
751 |
|
||
Total current liabilities |
|
371,015 |
|
|
356,044 |
|
||
Deferred income taxes |
|
81,316 |
|
|
71,686 |
|
||
Income taxes payable |
|
51,177 |
|
|
44,965 |
|
||
Operating lease liabilities, net of current portion |
|
85,307 |
|
|
95,584 |
|
||
Long-term debt and finance lease liabilities, net of discount |
|
402,703 |
|
|
397,036 |
|
||
Other liabilities |
|
328 |
|
|
430 |
|
||
Total liabilities |
|
991,846 |
|
|
965,745 |
|
||
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock |
|
– |
|
|
– |
|
||
Common stock |
|
24 |
|
|
24 |
|
||
Additional paid-in capital |
|
718,497 |
|
|
672,727 |
|
||
Accumulated other comprehensive loss |
|
(106,720) |
|
|
(121,088) |
|
||
Retained earnings |
|
2,330,791 |
|
|
1,937,853 |
|
||
Total stockholders’ equity |
|
2,942,592 |
|
|
2,489,516 |
|
||
Total liabilities and stockholders’ equity |
|
$ |
3,934,438 |
|
|
$ |
3,455,261 |
|
Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
Six Months Ended January 31, |
||||||
|
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
393,725 |
|
|
$ |
386,887 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization, including debt cost |
|
60,898 |
|
|
48,097 |
|
||
Allowance for credit loss |
|
213 |
|
|
1,301 |
|
||
Equity in (earnings) losses of unconsolidated affiliates |
|
(1,343) |
|
|
3,124 |
|
||
Stock-based compensation |
|
17,778 |
|
|
11,674 |
|
||
Gain on sale of property and equipment |
|
(1,145) |
|
|
(1,315) |
|
||
Deferred income taxes |
|
9,442 |
|
|
6,719 |
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
(111,148) |
|
|
(78,510) |
|
||
Vehicle pooling costs |
|
(19,099) |
|
|
(13,921) |
|
||
Inventories |
|
(9,772) |
|
|
2,765 |
|
||
Prepaid expenses and other current and non-current assets |
|
5,802 |
|
|
7,184 |
|
||
Operating lease right-of-use assets and lease liabilities |
|
470 |
|
|
331 |
|
||
Accounts payable and accrued liabilities |
|
10,041 |
|
|
24,862 |
|
||
Deferred revenue |
|
6,098 |
|
|
1,021 |
|
||
Income taxes receivable |
|
20,243 |
|
|
(48,722) |
|
||
Income taxes payable |
|
10,838 |
|
|
5,794 |
|
||
Other liabilities |
|
– |
|
|
(371) |
|
||
Net cash provided by operating activities |
|
393,041 |
|
|
356,920 |
|
||
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment, including acquisitions |
|
(283,214) |
|
|
(400,352) |
|
||
Proceeds from sale of property and equipment |
|
129 |
|
|
1,639 |
|
||
Net cash used in investing activities |
|
(283,085) |
|
|
(398,713) |
|
||
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from the exercise of stock options |
|
23,112 |
|
|
32,594 |
|
||
Proceeds from the issuance of Employee Stock Purchase Plan shares |
|
4,880 |
|
|
3,955 |
|
||
Payments for employee stock-based tax withholdings |
|
(787) |
|
|
(101,422) |
|
||
Net proceeds on revolving loan facility |
|
– |
|
|
13,600 |
|
||
Payments of finance lease obligations |
|
(622) |
|
|
– |
|
||
Net cash provided by (used in) financing activities |
|
26,583 |
|
|
(51,273) |
|
||
Effect of foreign currency translation |
|
2,146 |
|
|
258 |
|
||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
138,685 |
|
|
(92,808) |
|
||
Cash, cash equivalents, and restricted cash at beginning of period |
|
477,718 |
|
|
186,319 |
|
||
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
616,403 |
|
|
$ |
93,511 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
||||
Interest paid |
|
$ |
7,614 |
|
|
$ |
9,007 |
|
Income taxes paid, net of refunds |
|
$ |
64,860 |
|
|
$ |
57,591 |
|
Copart, Inc. Additional Financial Information Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
GAAP net income |
|
$ |
193,440 |
|
|
$ |
168,707 |
|
|
$ |
393,725 |
|
|
$ |
386,887 |
|
Effect of discrete income tax items |
|
– |
|
|
– |
|
|
– |
|
|
(3,008) |
|
||||
Effect of foreign currency-related losses (gains), net of tax |
|
238 |
|
|
(416) |
|
|
48 |
|
|
(679) |
|
||||
Effect of recognizing tax benefit on exercise of employee stock options |
|
(2,167) |
|
|
(14,829) |
|
|
(13,939) |
|
|
(77,194) |
|
||||
Effect of payroll taxes on certain executive stock compensation, net of tax |
|
– |
|
|
– |
|
|
– |
|
|
2,867 |
|
||||
Non-GAAP net income |
|
$ |
191,511 |
|
|
$ |
153,462 |
|
|
$ |
379,834 |
|
|
$ |
308,873 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income per diluted common share |
|
$ |
0.81 |
|
|
$ |
0.71 |
|
|
$ |
1.64 |
|
|
$ |
1.62 |
|
Non-GAAP net income per diluted common share |
|
$ |
0.80 |
|
|
$ |
0.64 |
|
|
$ |
1.58 |
|
|
$ |
1.29 |
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210218005089/en/
Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer
972-391-5090 or melissa.hunter@copart.com
DALLAS, Aug. 12, 2020 /PRNewswire/ – Brinker International, Inc. (NYSE: EAT) today provided a business update related to the first quarter of fiscal 2021 and announced results for the fourth quarter and fiscal year 2020 ended June 24, 2020.
“Our continued strategic focus on value, off-premise, digital and scale is allowing us to successfully navigate through the pandemic,” said Wyman Roberts, Chief Executive Officer and President of Brinker International. “Leaning into these existing strategies with a clear focus and continually prioritizing the safety of our Team Members and Guests has allowed us to accelerate our performance and deliver industry leading results.”
Fiscal 2021 First Quarter-to-Date Highlights
During the first quarter of fiscal 2021 Chili’s and Maggiano’s continue to operate with reduced dining room capacities due to state and local mandates related to COVID-19. The following represents a business update from our first period of fiscal 2021 ended July 29, 2020, related to Company-owned restaurants:
Comparable Restaurant Sales |
||||||||
Opened Dining |
Off-Premise Only |
Total Comparable |
||||||
Chili’s |
(3.8) |
% |
(46.3) |
% |
(10.9) |
% |
||
Maggiano’s |
(44.6) |
% |
N/A |
(44.6) |
% |
Fiscal 2021 Outlook
We are providing a financial outlook for the first quarter of fiscal 2021 quarter instead of our usual practice of providing an annual outlook. Forecasting longer term business performance is not reliable given the uncertainties created by the ongoing COVID-19 pandemic. We plan to update our financial outlook on a quarterly basis until such time we can reliably forecast on a longer term basis.
First Quarter of Fiscal 2021 Guidance
Fiscal 2021 is a 53-week year, and includes an extra operating week in the fourth quarter.
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 during fiscal 2021, reconciliations to the appropriate GAAP measures will be provided.
Fiscal 2020 Highlights – Fourth Quarter and Fiscal Year
Financial metrics of the fourth quarter of fiscal 2020 compared to the fourth quarter of fiscal 2019, and fiscal year 2020 compared to fiscal year 2019, were negatively impacted due to the COVID-19 pandemic, partially offset by the acquisition of 116 Chili’s restaurants in the first quarter of fiscal 2020 and increased off-premise sales. For non-GAAP information and related reconciliations, refer to the tables and information at the end of this earnings release.
Fourth Quarter |
Fiscal Year |
||||||||||||||||||||
Financial Metrics |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||
Company sales |
$ |
553.1 |
$ |
804.8 |
(31.3) |
% |
$ |
3,004.9 |
$ |
3,106.2 |
(3.3) |
% |
|||||||||
Total revenues |
$ |
563.2 |
$ |
834.1 |
(32.5) |
% |
$ |
3,078.5 |
$ |
3,217.9 |
(4.3) |
% |
|||||||||
Operating income (loss) |
$ |
(53.2) |
$ |
64.0 |
(183.1) |
% |
$ |
62.6 |
$ |
230.7 |
(72.9) |
% |
|||||||||
Operating income (loss) as a percentage of Total revenues |
(9.4) |
% |
7.7 |
% |
(17.1) |
% |
2.0 |
% |
7.2 |
% |
(5.2) |
% |
|||||||||
Restaurant operating margin, non-GAAP(1) |
$ |
35.2 |
$ |
119.8 |
(70.6) |
% |
$ |
335.0 |
$ |
411.2 |
(18.5) |
% |
|||||||||
Restaurant operating margin as a percentage of Company sales, non-GAAP |
6.4 |
% |
14.9 |
% |
(8.5) |
% |
11.1 |
% |
13.2 |
% |
(2.1) |
% |
|||||||||
Earnings (loss) per diluted share |
$ |
(1.20) |
$ |
1.22 |
(198.4) |
% |
$ |
0.63 |
$ |
3.96 |
(84.1) |
% |
|||||||||
Earnings (loss) per diluted share, adjusted, non-GAAP |
$ |
(0.88) |
$ |
1.36 |
(164.7) |
% |
$ |
1.71 |
$ |
3.93 |
(56.5) |
% |
|||||||||
Comparable Restaurant Sales – Company Owned |
Q4: 20 vs 19 |
Q4: 19 vs 18 |
FY: 20 vs 19 |
FY: 19 vs 18 |
|||||||||||||||||
Brinker |
(36.7) |
% |
1.2 |
% |
(10.1) |
% |
2.1 |
% |
|||||||||||||
Chili’s |
(32.2) |
% |
1.5 |
% |
(8.6) |
% |
2.3 |
% |
|||||||||||||
Maggiano’s |
(66.7) |
% |
(0.2) |
% |
(19.9) |
% |
0.6 |
% |
(1) |
Restaurant operating margin is defined as Company sales less Company restaurant expenses that includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges (see non-GAAP reconciliation below) |
Fiscal 2020 Quarterly Operating Performance
Segment Performance
Chili’s |
Maggiano’s |
||||||||||||||||||||||
Fourth Quarter |
Favorable |
Fourth Quarter |
Favorable |
||||||||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||||||||||
Company sales |
$ |
518.9 |
$ |
701.9 |
$ |
(183.0) |
$ |
34.2 |
$ |
102.9 |
$ |
(68.7) |
|||||||||||
Franchise and other revenues |
9.7 |
23.5 |
(13.8) |
0.4 |
5.8 |
(5.4) |
|||||||||||||||||
Total revenues |
528.6 |
725.4 |
(196.8) |
34.6 |
108.7 |
(74.1) |
|||||||||||||||||
Company restaurant expenses |
478.2 |
595.3 |
117.1 |
39.5 |
89.6 |
50.1 |
|||||||||||||||||
Company restaurant expenses as a % of Company sales |
92.2 |
% |
84.8 |
% |
(7.4) |
% |
115.5 |
% |
87.1 |
% |
(28.4) |
% |
|||||||||||
Operating income (loss) |
(4.2) |
82.0 |
(86.2) |
(14.2) |
12.1 |
(26.3) |
|||||||||||||||||
Operating income (loss) as a % of Total revenues |
(0.8) |
% |
11.3 |
% |
(12.1) |
% |
(41.0) |
% |
11.1 |
% |
(52.1) |
% |
|||||||||||
Restaurant operating margin – non-GAAP |
40.7 |
106.6 |
(65.9) |
(5.3) |
13.3 |
(18.6) |
|||||||||||||||||
Restaurant operating margin as a % of Company sales – non-GAAP |
7.8 |
% |
15.2 |
% |
(7.4) |
% |
(15.5) |
% |
12.9 |
% |
(28.4) |
% |
Chili’s
Maggiano’s
Franchise and other revenues
Income Taxes
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 today, August 12, 2020 at 9 a.m. CDT:
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 August 26, 2020.
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
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.
About Brinker
Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Based in Dallas, Texas, as of June 24, 2020, Brinker owned, operated, or franchised 1,663 restaurants under the names Chili’s® Grill & Bar (1,610 restaurants) and Maggiano’s Little Italy® (53 restaurants).
Forward-Looking Statements
The statements and tables 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, and are currently, or in the future could be, amplified by the novel strain of the coronavirus (“COVID-19”) pandemic. Such risks and uncertainties include, among other things, uncertainty of the magnitude, duration, geographic reach and impact of the COVID-19 pandemic on local, national and global economies; the current, and uncertain future, impact of the COVID-19 pandemic and governments’ responses to it on our industry, business, growth, reputation, projections, prospects, financial condition, operations, cash flows, and liquidity; the adequacy or effectiveness of steps we take to respond to the COVID-19 crisis, including cost reduction or other mitigation programs; the impact of competition; changes in consumer preferences; consumer perception of food safety; reduced disposable income; unfavorable publicity; increased minimum wages; governmental regulations; the impact of mergers, acquisitions, divestitures and other strategic transactions; the Company’s ability to meet its business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management; the impact of social media; failure to protect the security of data of our guests and team members; product availability; regional business and economic conditions; litigation; franchisee success; inflation; changes in the retail industry; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; actions of activist shareholders; adverse weather conditions; terrorist acts; health epidemics or pandemics (such as COVID-19); and tax reform; as well as the risks and uncertainties described in “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 (Unaudited) |
|||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||
Thirteen Week Periods Ended |
Fifty-Two Week Periods Ended |
||||||||||||||
June 24, 2020 |
June 26, 2019 |
June 24, 2020 |
June 26, 2019 |
||||||||||||
Revenues |
|||||||||||||||
Company sales |
$ |
553.1 |
$ |
804.8 |
$ |
3,004.9 |
$ |
3,106.2 |
|||||||
Franchise and other revenues(1) |
10.1 |
29.3 |
73.6 |
111.7 |
|||||||||||
Total revenues |
563.2 |
834.1 |
3,078.5 |
3,217.9 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Food and beverage costs |
145.0 |
213.5 |
798.6 |
823.0 |
|||||||||||
Restaurant labor |
199.3 |
268.6 |
1,045.5 |
1,059.7 |
|||||||||||
Restaurant expenses |
173.6 |
202.9 |
825.8 |
812.3 |
|||||||||||
Depreciation and amortization |
41.4 |
38.1 |
162.3 |
147.6 |
|||||||||||
General and administrative |
40.4 |
39.1 |
136.3 |
149.1 |
|||||||||||
Other (gains) and charges(2) |
16.7 |
7.9 |
47.4 |
(4.5) |
|||||||||||
Total operating costs and expenses |
616.4 |
770.1 |
3,015.9 |
2,987.2 |
|||||||||||
Operating income (loss) |
(53.2) |
64.0 |
62.6 |
230.7 |
|||||||||||
Interest expenses |
15.4 |
15.3 |
59.6 |
61.6 |
|||||||||||
Other (income), net |
(0.5) |
(0.5) |
(1.9) |
(2.7) |
|||||||||||
Income (loss) before income taxes |
(68.1) |
49.2 |
4.9 |
171.8 |
|||||||||||
Provision (benefit) for income taxes |
(18.9) |
2.5 |
(19.5) |
16.9 |
|||||||||||
Net income (loss) |
$ |
(49.2) |
$ |
46.7 |
$ |
24.4 |
$ |
154.9 |
|||||||
Basic net income (loss) per share |
$ |
(1.20) |
$ |
1.25 |
$ |
0.64 |
$ |
4.04 |
|||||||
Diluted net income (loss) per share |
$ |
(1.20) |
$ |
1.22 |
$ |
0.63 |
$ |
3.96 |
|||||||
Basic weighted average shares outstanding |
40.9 |
37.5 |
38.2 |
38.3 |
|||||||||||
Diluted weighted average shares outstanding |
40.9 |
38.3 |
38.9 |
39.1 |
|||||||||||
Other comprehensive income (loss) |
|||||||||||||||
Foreign currency translation adjustments(3) |
$ |
0.5 |
$ |
0.3 |
$ |
(0.6) |
$ |
0.2 |
|||||||
Other comprehensive income (loss) |
0.5 |
0.3 |
(0.6) |
0.2 |
|||||||||||
Comprehensive income (loss) |
$ |
(48.7) |
$ |
47.0 |
$ |
23.8 |
$ |
155.1 |
(1) |
Franchise and other revenues include Royalties and Franchise fees and other revenues. Franchise fees and other revenues include gift card breakage, Maggiano’s banquet service charge income, franchise advertising fees, delivery fee income, digital entertainment revenues, gift card equalization, franchise and development fees, merchandise income, retail royalty revenues, and gift card discount costs from third-party gift card sales. |
(2) |
Other (gains) and charges included in the Consolidated Statements of Comprehensive Income (Unaudited) included (in millions): |
Thirteen Week Periods Ended |
Fifty-Two Week Periods Ended |
||||||||||||||
June 24, 2020 |
June 26, 2019 |
June 24, 2020 |
June 26, 2019 |
||||||||||||
Restaurant impairment charges |
$ |
14.5 |
$ |
9.8 |
$ |
19.1 |
$ |
10.8 |
|||||||
COVID-19 related charges, net of (credits) |
(3.9) |
– |
12.2 |
– |
|||||||||||
Restaurant closure charges |
0.4 |
0.3 |
3.8 |
4.3 |
|||||||||||
Remodel-related costs |
1.1 |
2.9 |
3.2 |
7.7 |
|||||||||||
Severance and other benefit charges |
2.7 |
0.7 |
3.2 |
0.9 |
|||||||||||
Corporate headquarters relocation charges |
0.2 |
0.1 |
1.1 |
6.3 |
|||||||||||
Property damages, net of (insurance recoveries) |
(0.1) |
(0.2) |
(0.7) |
(0.7) |
|||||||||||
(Gain) on sale of assets, net |
(0.2) |
(0.1) |
(0.2) |
(6.9) |
|||||||||||
Sale leaseback (gain), net of transaction charges |
– |
(5.3) |
– |
(27.3) |
|||||||||||
Other |
2.0 |
(0.3) |
5.7 |
0.4 |
|||||||||||
$ |
16.7 |
$ |
7.9 |
$ |
47.4 |
$ |
(4.5) |
(3) |
Foreign currency translation adjustment included in our Comprehensive income in the Consolidated Statements of Comprehensive Income (Unaudited) represents the unrealized impact of translating the financial statements of our Canadian restaurants from Canadian dollars to U.S. dollars. This amount is not included in Net income and would only be realized upon disposition of these restaurants. |
BRINKER INTERNATIONAL, INC. |
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(In millions) |
|||||||
June 24, |
June 26, |
||||||
ASSETS |
|||||||
Total current assets |
$ |
224.4 |
$ |
177.0 |
|||
Net property and equipment |
805.3 |
755.1 |
|||||
Operating lease assets |
1,054.6 |
– |
|||||
Deferred income taxes, net |
38.2 |
112.0 |
|||||
Other assets |
233.5 |
214.2 |
|||||
Total assets |
$ |
2,356.0 |
$ |
1,258.3 |
|||
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|||||||
Total current liabilities |
$ |
497.9 |
$ |
421.6 |
|||
Long-term debt and finance leases, less current installments |
1,208.5 |
1,206.6 |
|||||
Long-term operating lease liabilities, less current portion |
1,061.6 |
– |
|||||
Deferred gain on sale leaseback transactions |
– |
255.3 |
|||||
Other liabilities |
67.1 |
153.0 |
|||||
Total shareholders’ deficit |
(479.1) |
(778.2) |
|||||
Total liabilities and shareholders’ deficit |
$ |
2,356.0 |
$ |
1,258.3 |
The Condensed Consolidated Balance Sheets (Unaudited) at June 24, 2020 included the final purchase price allocation for the 116 Chili’s restaurants acquired on September 5, 2019. Of the 1,116 Company-owned restaurant locations, at June 24, 2020, we own both building and land for 43 restaurant locations. The related book values associated with these restaurants included land of $34.1 million and buildings of $13.9 million.
Additionally, effective fiscal 2020, we adopted ASC 842, the new lease accounting standard that required us to recognize operating lease assets and liabilities in the balance sheet. Upon adoption, we eliminated the remaining deferred balance associated with the fiscal 2019 sale leaseback transactions gain and related deferred tax asset. Under our historical accounting, operating leases were not recognized in the balance sheet. Prior results have not been restated for the impact of this accounting change.
BRINKER INTERNATIONAL, INC. |
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
(In millions) |
|||||||
Fifty-Two Week Periods Ended |
|||||||
June 24, 2020 |
June 26, 2019 |
||||||
Cash flows from operating activities |
|||||||
Net income |
$ |
24.4 |
$ |
154.9 |
|||
Adjustments to reconcile Net income to Net cash provided by operating activities: |
|||||||
Depreciation and amortization |
162.3 |
147.6 |
|||||
Stock-based compensation |
14.8 |
16.4 |
|||||
Restructure charges and other impairments |
28.9 |
26.5 |
|||||
Net loss (gain) on disposal of assets |
1.2 |
(33.1) |
|||||
Other |
2.8 |
3.0 |
|||||
Changes in assets and liabilities |
10.6 |
(102.6) |
|||||
Net cash provided by operating activities |
245.0 |
212.7 |
|||||
Cash flows from investing activities |
|||||||
Payments for property and equipment |
(104.5) |
(167.6) |
|||||
Payments for franchise restaurant acquisitions |
(94.6) |
(3.1) |
|||||
Proceeds from note receivable |
2.8 |
2.8 |
|||||
Proceeds from sale of assets |
1.2 |
1.6 |
|||||
Insurance recoveries |
1.1 |
1.7 |
|||||
Proceeds from sale leaseback transactions, net of related expenses |
– |
485.9 |
|||||
Net cash (used in) provided by investing activities |
(194.0) |
321.3 |
|||||
Cash flows from financing activities |
|||||||
Payments on revolving credit facility |
(858.8) |
(1,150.0) |
|||||
Borrowings on revolving credit facility |
808.4 |
853.0 |
|||||
Payments of dividends |
(57.4) |
(60.3) |
|||||
Purchases of treasury stock |
(32.4) |
(167.7) |
|||||
Payments on long-term debt |
(17.8) |
(9.5) |
|||||
Payments for common stock issuance costs |
(7.8) |
– |
|||||
Payments for debt issuance costs |
(3.2) |
– |
|||||
Proceeds from issuance of common stock |
146.9 |
– |
|||||
Proceeds from issuance of treasury stock |
1.6 |
3.0 |
|||||
Net cash used in financing activities |
(20.5) |
(531.5) |
|||||
Net change in cash and cash equivalents |
30.5 |
2.5 |
|||||
Cash and cash equivalents at beginning of period |
13.4 |
10.9 |
|||||
Cash and cash equivalents at end of period |
$ |
43.9 |
$ |
13.4 |
BRINKER INTERNATIONAL, INC. |
||||||||||||||
Restaurant Summary |
||||||||||||||
New Openings |
||||||||||||||
Fiscal 2020 |
Fiscal 2021 |
|||||||||||||
Total Restaurants |
Total Restaurants |
Fourth Quarter |
Fiscal Year |
Full Year |
||||||||||
Company-owned restaurants |
||||||||||||||
Chili’s domestic |
1,059 |
944 |
0 |
6 |
7 |
|||||||||
Chili’s international |
5 |
5 |
0 |
0 |
0 |
|||||||||
Maggiano’s domestic |
52 |
52 |
0 |
0 |
0 |
|||||||||
Total Company-owned |
1,116 |
1,001 |
0 |
6 |
7 |
|||||||||
Franchise restaurants |
||||||||||||||
Chili’s domestic |
174 |
298 |
0 |
2 |
1-3 |
|||||||||
Chili’s international |
372 |
365 |
0 |
23 |
6-9 |
|||||||||
Maggiano’s domestic |
1 |
1 |
0 |
0 |
1 |
|||||||||
Total franchise |
547 |
664 |
0 |
25 |
8-13 |
|||||||||
Total Company-owned and franchise |
||||||||||||||
Chili’s domestic |
1,233 |
1,242 |
0 |
8 |
8-10 |
|||||||||
Chili’s international |
377 |
370 |
0 |
23 |
6-9 |
|||||||||
Maggiano’s domestic |
53 |
53 |
0 |
0 |
1 |
|||||||||
Total |
1,663 |
1,665 |
0 |
31 |
15-20 |
|||||||||
Relocation Openings |
||||||||||||||
Chili’s domestic Company-owned relocations |
0 |
0 |
2 |
Included in the Total Restaurants Open at June 24, 2020 are locations that have been temporarily closed due to the COVID-19 pandemic which include 9 Company-owned Chili’s restaurants located within a closed structure or closed due to local regulations, 18 domestic Chili’s franchise locations, and 89 Chili’s international franchise locations.
NON-GAAP INFORMATION AND RECONCILIATIONS |
|||||||||||||||||||||||
Comparable Restaurant Sales |
|||||||||||||||||||||||
Q4 20 and Q4 19 |
|||||||||||||||||||||||
Comparable Restaurant |
Price Impact |
Mix-Shift(2) |
Traffic |
||||||||||||||||||||
Q4: 20 vs 19 |
Q4: 19 vs 18 |
Q4: 20 vs 19 |
Q4: 19 vs 18 |
Q4: 20 vs 19 |
Q4: 19 vs 18 |
Q4: 20 vs 19 |
Q4: 19 vs 18 |
||||||||||||||||
Company-owned |
(36.7) |
% |
1.2 |
% |
0.9 |
% |
3.6 |
% |
(8.0) |
% |
(1.8) |
% |
(29.6) |
% |
(0.6) |
% |
|||||||
Chili’s |
(32.2) |
% |
1.5 |
% |
0.8 |
% |
3.9 |
% |
(5.4) |
% |
(1.9) |
% |
(27.6) |
% |
(0.5) |
% |
|||||||
Maggiano’s |
(66.7) |
% |
(0.2) |
% |
2.1 |
% |
1.6 |
% |
(15.1) |
% |
(0.5) |
% |
(53.7) |
% |
(1.3) |
% |
|||||||
Chili’s franchise(3) |
(49.5) |
% |
0.4 |
% |
|||||||||||||||||||
U.S. |
(39.9) |
% |
0.9 |
% |
|||||||||||||||||||
International |
(66.1) |
% |
(0.5) |
% |
|||||||||||||||||||
Chili’s domestic(4) |
(33.0) |
% |
1.3 |
% |
|||||||||||||||||||
System-wide(5) |
(38.6) |
% |
1.0 |
% |
|||||||||||||||||||
FY 20 and FY 19 |
|||||||||||||||||||||||
Comparable Restaurant |
Price Impact |
Mix-Shift(2) |
Traffic |
||||||||||||||||||||
FY: 20 vs 19 |
FY: 19 vs 18 |
FY: 20 vs 19 |
FY: 19 vs 18 |
FY: 20 vs 19 |
FY: 19 vs 18 |
FY: 20 vs 19 |
FY: 19 vs 18 |
||||||||||||||||
Company-owned |
(10.1) |
% |
2.1 |
% |
1.3 |
% |
1.7 |
% |
(2.0) |
% |
(1.7) |
% |
(9.4) |
% |
2.1 |
% |
|||||||
Chili’s |
(8.6) |
% |
2.3 |
% |
1.3 |
% |
1.7 |
% |
(1.1) |
% |
(1.7) |
% |
(8.8) |
% |
2.3 |
% |
|||||||
Maggiano’s |
(19.9) |
% |
0.6 |
% |
1.5 |
% |
1.5 |
% |
(4.0) |
% |
(0.5) |
% |
(17.4) |
% |
(0.4) |
% |
|||||||
Chili’s franchise(3) |
(14.4) |
% |
0.1 |
% |
|||||||||||||||||||
U.S. |
(10.1) |
% |
2.0 |
% |
|||||||||||||||||||
International |
(23.1) |
% |
(3.0) |
% |
|||||||||||||||||||
Chili’s domestic(4) |
(8.8) |
% |
2.2 |
% |
|||||||||||||||||||
System-wide(5) |
(10.8) |
% |
1.5 |
% |
(1) |
Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 months except acquired restaurants which are included after more than 12 months ownership. Restaurants temporarily closed 14 days or more are excluded from comparable restaurant sales. Percentage amounts are calculated based on the comparable periods year-over-year. |
(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) |
Chili’s Franchise sales generated by franchisees are not included in revenues in the Consolidated Statements of Comprehensive Income (Unaudited); however, we generate royalty revenues 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. |
(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. |
Reconciliation of Net Income (Loss) and Adjusted Net Income (Loss) Per Share (in millions, except per 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.
Fourth Quarter |
Fiscal Year |
||||||||||||||||||||||||||||||
Q4 20 |
EPS |
Q4 19 |
EPS |
FY 20 |
EPS |
FY 19 |
EPS |
||||||||||||||||||||||||
Net income (loss) |
$ |
(49.2) |
$ |
(1.20) |
$ |
46.7 |
$ |
1.22 |
$ |
24.4 |
$ |
0.63 |
$ |
154.9 |
$ |
3.96 |
|||||||||||||||
Special items(1) |
19.1 |
0.46 |
8.7 |
0.22 |
57.2 |
1.47 |
(1.1) |
(0.03) |
|||||||||||||||||||||||
Income tax effect related to special items(2) |
(4.8) |
(0.12) |
(2.1) |
(0.05) |
(14.3) |
(0.37) |
0.3 |
0.01 |
|||||||||||||||||||||||
Special items, net of taxes |
14.3 |
0.34 |
6.6 |
0.17 |
42.9 |
1.10 |
(0.8) |
(0.02) |
|||||||||||||||||||||||
Adjustment for special tax items(3) |
(0.9) |
(0.02) |
(1.2) |
(0.03) |
(0.7) |
(0.02) |
(0.6) |
(0.01) |
|||||||||||||||||||||||
Adjusted net income (loss) |
$ |
(35.8) |
$ |
(0.88) |
$ |
52.1 |
$ |
1.36 |
$ |
66.6 |
$ |
1.71 |
$ |
153.5 |
$ |
3.93 |
(1) |
Special items in the fourth quarter of fiscal 2020 consist of a charge of $16.7 million in Other (gains) and charges that included charges related to the COVID-19 pandemic, and $2.4 million of incremental depreciation expenses associated with a change in estimated useful life of certain restaurant-level long-lived assets. Special items in the fourth quarter of fiscal 2019 consist of a $7.9 million charge in Other (gains) and charges, and $0.8 million of incremental depreciation expenses associated with a change in estimated useful life of certain restaurant-level long-lived assets. |
Special items in fiscal 2020 consist of a charge of $47.4 million in Other (gains) and charges that included charges related to the COVID-19 pandemic, and $9.8 million of incremental depreciation expenses associated with a change in estimated useful life of certain restaurant-level long-lived assets. Special items in fiscal 2019 consist of a gain of $4.5 million in Other (gains) and charges, partially offset by $3.4 million of incremental depreciation expenses associated with a change in estimated useful life of certain restaurant-level long-lived assets. Footnote “(2)” to the Consolidated Statements of Comprehensive Income (Unaudited) contains additional details on the composition of Other (gains) and charges for each period presented. |
|
(2) |
Income tax effect related to special items is based on the statutory tax rate in effect at the end of each period presented. |
(3) |
Adjustment for special tax items in the fourth quarter of fiscal 2020 primarily related to additional tax benefit of prior year return claim amendments as allowed by the CARES Act. Adjustment for special tax items in the fourth quarter of fiscal 2019 primarily related to favorable resolution of liabilities established for uncertain tax positions and realization of tax benefits not previously recognized. |
Adjustment for special tax items in fiscal 2020 primarily related to additional tax benefit of prior year return claim amendments as allowed by the CARES Act. Adjustment for special tax items in fiscal 2019 primarily related to favorable resolution of liabilities established for uncertain tax positions, realization of tax benefits not previously recognized and tax shortfalls associated with stock based compensation. |
Reconciliation of Restaurant Operating Margin (in millions, except percentages) |
|||||||||||||||
Fourth Quarter |
Fiscal Year |
||||||||||||||
Q4 20 |
Q4 19 |
FY 20 |
FY 19 |
||||||||||||
Operating income (loss) – GAAP |
$ |
(53.2) |
$ |
64.0 |
$ |
62.6 |
$ |
230.7 |
|||||||
Operating income (loss) as a percentage of Total revenues |
(9.4) |
% |
7.7 |
% |
2.0 |
% |
7.2 |
% |
|||||||
Operating income (loss) – GAAP |
$ |
(53.2) |
$ |
64.0 |
$ |
62.6 |
$ |
230.7 |
|||||||
Less: Franchise and other revenues |
(10.1) |
(29.3) |
(73.6) |
(111.7) |
|||||||||||
Plus: Depreciation and amortization |
41.4 |
38.1 |
162.3 |
147.6 |
|||||||||||
General and administrative |
40.4 |
39.1 |
136.3 |
149.1 |
|||||||||||
Other (gains) and charges |
16.7 |
7.9 |
47.4 |
(4.5) |
|||||||||||
Restaurant operating margin – non-GAAP |
$ |
35.2 |
$ |
119.8 |
$ |
335.0 |
$ |
411.2 |
|||||||
Restaurant operating margin as a percentage of Company sales |
6.4 |
% |
14.9 |
% |
11.1 |
% |
13.2 |
% |
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. This non-GAAP measure is not indicative of overall Company performance and profitability because this measure does not directly accrue benefit to the shareholders due to the nature of costs excluded. We define Restaurant operating margin as Company sales less Food and beverage costs, Restaurant labor and Restaurant expenses. 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 expenses, Depreciation and amortization, and Other (gains) and charges.
Restaurant operating margin excludes Franchise and other revenues which are earned primarily from franchise royalties, advertising fees, and other non-food and beverage revenues streams such as gift card breakage, banquet service charges, delivery fee income, and digital entertainment revenues. Depreciation and amortization expenses, substantially all of which are related to restaurant-level assets, are excluded because such expenses represent historical costs which do not reflect current cash outlays for the restaurants. General and administrative expenses include primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices and are 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.
Reconciliation of Free Cash Flow (in millions)
Brinker believes presenting free cash flow provides a useful measure to evaluate the cash flow available for reinvestment after considering the capital requirements and expenditures of our business operations.
Fifty-Two Week |
|||
Cash flows provided by operating activities – GAAP |
$ |
245.0 |
|
Capital expenditures |
(104.5) |
||
Free cash flow – non-GAAP |
$ |
140.5 |
View original content to download multimedia:http://www.prnewswire.com/news-releases/brinker-international-provides-first-quarter-of-fiscal-2021-outlook-and-reports-fourth-quarter-of-fiscal-2020-results-301110471.html
SOURCE Brinker International, Inc.
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DALLAS, Aug. 5, 2020 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) has scheduled its earnings conference call at 10 a.m. Eastern Time on Wednesday, August 12, 2020 to review fourth quarter fiscal 2020 earnings, which will be announced before the market opens on August 12, 2020.
The live audio webcast can be accessed through Brinker’s investor relations website at http://investors.brinker.com/events/event-details/q4-2020-brinker-international-earnings-conference-call. A replay of the conference call will be available on the website for two weeks after the event and via Thomson StreetEvents for their service subscribers.
ABOUT BRINKER
Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Based in Dallas, Texas, as of March 25, 2020, Brinker owned, operated, or franchised 1,675 restaurants under the names Chili’s® Grill & Bar (1,622 restaurants) and Maggiano’s Little Italy® (53 restaurants).
View original content to download multimedia:http://www.prnewswire.com/news-releases/brinker-international-inc-to-host-fourth-quarter-fiscal-2020-earnings-call-301106587.html
SOURCE Brinker International, Inc.
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