SAN DIEGO--(BUSINESS WIRE)--May. 15, 2013--
Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from
continuing operations of $13.4 million, or $0.30 per diluted share, for
the second quarter ended April 14, 2013, compared with earnings from
continuing operations of $21.6 million, or $0.48 per diluted share, for
the second quarter of fiscal 2012.
Operating earnings per share, a non-GAAP measure which the company
defines as diluted earnings per share from continuing operations on a
GAAP basis excluding restructuring charges and gains or losses from
refranchising, were $0.33 per share in the second quarter of fiscal 2013
compared with $0.30 per share in the prior year quarter.
During the second quarter of fiscal 2013, the company recognized a
pre-tax loss of $2.7 million, or approximately 4 cents per diluted
share, related to the expected sale of 16 restaurants in one market that
is anticipated to be completed by the end of the fiscal year. The
company also refranchised four Jack in the Box® restaurants, which
generated a gain of approximately $0.01 per diluted share. The resulting
loss from refranchising of approximately $0.03 per diluted share for the
quarter compares with a gain from refranchising of approximately $0.21
per diluted share in the prior year quarter.
A reconciliation of non-GAAP measurements to GAAP results is provided
below, with additional information included in the attachment to this
release. Figures may not add due to rounding.
|
|
12 Weeks Ended
|
|
28 Weeks Ended
|
|
|
April 14, 2013
|
April 15, 2012
|
|
April 14, 2013
|
April 15, 2012
|
Diluted earnings per share from continuing operations – GAAP
|
|
$
|
0.30
|
$
|
0.48
|
|
|
$
|
0.84
|
$
|
0.75
|
|
Plus: Restructuring charges
|
|
|
-
|
|
0.02
|
|
|
|
0.02
|
|
0.02
|
|
Less: (Gains)/losses from refranchising
|
|
|
0.03
|
|
(0.21
|
)
|
|
|
0.03
|
|
(0.22
|
)
|
Operating earnings per share – Non-GAAP
|
|
$
|
0.33
|
$
|
0.30
|
|
|
$
|
0.88
|
$
|
0.55
|
|
The company is continuing its efforts to lower its cost structure and
identify opportunities to reduce G&A as well as improve restaurant
profitability across both brands. As a result, restructuring charges of
$0.3 million were recorded during the second quarter of 2013 as compared
to $1.5 million, or approximately $0.02 per diluted share in the prior
year quarter. These charges are included in “impairment and other
charges, net” in the accompanying condensed consolidated statements of
earnings. The company expects to incur additional restructuring charges
in fiscal 2013 relating to this review.
As previously announced, during the fourth quarter of 2012, the company
began outsourcing its distribution business, and the transition was
completed in the first quarter of fiscal 2013. As a result of the
outsourcing, the company recorded an after-tax charge of $0.1 million in
the second quarter and $3.3 million in the first quarter of fiscal 2013,
which reduced year-to-date diluted net earnings per share by
approximately $0.08. This charge and the results of operations for the
distribution business are included in discontinued operations in the
accompanying condensed consolidated statements of earnings for all
periods presented.
Increase (decrease) in same-store sales:
|
|
|
12 Weeks Ended April 14, 2013
|
|
12 Weeks Ended April 15, 2012
|
|
28 Weeks Ended April 14, 2013
|
|
28 Weeks Ended April 15, 2012
|
Jack in the Box®:
|
|
|
|
|
|
|
|
|
|
Company
|
|
0.9
|
%
|
|
5.6
|
%
|
|
1.6
|
%
|
|
5.5
|
%
|
|
Franchise
|
|
(0.2
|
%)
|
|
3.6
|
%
|
|
0.9
|
%
|
|
3.1
|
%
|
|
System
|
|
0.1
|
%
|
|
4.2
|
%
|
|
1.1
|
%
|
|
3.8
|
%
|
Qdoba®:
|
|
|
|
|
|
|
|
|
|
Company
|
|
(2.0
|
%)
|
|
3.8
|
%
|
|
(0.1
|
%)
|
|
3.7
|
%
|
|
Franchise
|
|
(0.9
|
%)
|
|
2.2
|
%
|
|
(0.1
|
%)
|
|
3.2
|
%
|
|
System
|
|
(1.5
|
%)
|
|
3.0
|
%
|
|
(0.1
|
%)
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linda A. Lang, chairman and chief executive officer, said, “Jack in the
Box company same-store sales increased 0.9 percent during the quarter,
accelerating in the last two months of the quarter after a slow start
which we attributed to pressures on consumer spending due to higher
payroll taxes, delayed tax refunds and the rapid increase in gas prices
in the last part of January and first half of February. Jack in the Box
system same-store sales growth for the quarter exceeded that of the QSR
sandwich segment by 1.9 percentage points for the comparable period,
according to The NPD Group’s SalesTrack® Weekly for the 12-week time
period ended April 14, 2013. Included in this segment are 15 of the top
QSR sandwich and burger chains in the US. And on a weekly basis, the
brand outperformed the segment for 11 out of the 12 weeks.
“Qdoba same-store sales in the second quarter decreased 2.0 percent for
company restaurants, and were adversely affected by more severe winter
weather in the quarter than last year, which we believe resulted in
approximately 150 basis points of unfavorable impact,” Lang said.
Consolidated restaurant operating margin improved by 30 basis points to
15.8 percent of sales in the second quarter of 2013, compared with 15.5
percent of sales in the year-ago quarter.
Restaurant operating margin increased 160 basis points to 17.1% of sales
for Jack in the Box. The improvement was due primarily to leverage from
same-store sales increases and the benefit of refranchising, as well as
slightly lower food and packaging costs. The decrease in food and
packaging costs as a percentage of sales was due primarily to the
benefit of price increases and favorable product mix which were
partially offset by commodity inflation of approximately 2.6 percent.
Restaurant operating margin decreased 340 basis points to 12.2% of sales
for Qdoba, due primarily to sales deleverage and greater promotional
activity, as well as commodity inflation of approximately 1.8 percent.
SG&A expense for the second quarter decreased by $1.5 million and was
14.9 percent of revenues, the same percentage as the prior year quarter.
The decrease in SG&A costs was due, in part, to the benefit of the
company’s restructuring activities, lower advertising and overhead costs
resulting from the Jack in the Box refranchising strategy, and a
decrease in pre-opening costs. These decreases were partially offset by
higher incentive and share-based compensation, increased advertising and
G&A related to Qdoba growth, and higher pension costs. Mark-to-market
adjustments on investments supporting the company’s non-qualified
retirement plans positively impacted SG&A by $1.4 million in the second
quarter as compared to a positive impact of $1.1 million in last year’s
second quarter, resulting in a year-over-year decrease in SG&A of $0.3
million.
Impairment and other charges decreased $2.7 million in the quarter
compared to a year ago, including a $1.2 million decrease in
restructuring charges.
The tax rate for the second quarter of 2013 was 37.1 percent versus 34.1
percent for the second quarter of 2012. The tax rate in the second
quarter of fiscal 2013 was affected by the timing of Work Opportunity
Tax Credits.
The company repurchased approximately 421,000 shares of its common stock
in the second quarter at an average price of $34.28 per share for an
aggregate cost of $14.4 million. This leaves $35.6 million remaining
under a $100 million stock-buyback program authorized by the company’s
board of directors that expires in November 2013, and $100 million
remaining under a subsequent authorization that expires in November 2014.
Restaurant openings
Three new franchised Jack in the Box restaurants opened in the second
quarter of fiscal 2013, compared with 7 new restaurants opened
system-wide during the same quarter last year, of which 3 were
franchised.
In the second quarter, 15 Qdoba restaurants opened, including 6
franchised locations, versus 8 new restaurants in the year-ago quarter,
of which 6 were franchised. The company also acquired 6 Qdoba
restaurants from franchisees in the quarter, compared with 25 in the
prior year quarter.
At April 14, 2013, the company’s system total comprised 2,256 Jack in
the Box restaurants, including 1,710 franchised locations, and 647 Qdoba
restaurants, including 307 franchised locations.
Guidance
The following guidance and underlying assumptions reflect the company’s
current expectations for the third quarter ending July 7, 2013, and the
fiscal year ending September 29, 2013. Fiscal 2013 is a 52-week year,
with 16 weeks in the first quarter, and 12 weeks in each of the second,
third and fourth quarters.
Third quarter fiscal year 2013 guidance
-
Same-store sales are expected to increase approximately 1 to 3 percent
at Jack in the Box company restaurants versus a 3.4 percent increase
in the year-ago quarter.
-
Same-store sales are expected to be approximately flat at Qdoba
company restaurants versus a 3.3 percent increase in the year-ago
quarter.
Fiscal year 2013 guidance
-
Same-store sales are expected to increase approximately 1.5 to 2.5
percent at Jack in the Box company restaurants.
-
Same-store sales are expected to be approximately flat to up 1.0
percent at Qdoba company restaurants.
-
Overall commodity costs are expected to increase by approximately 2 to
2.5 percent for the full year.
-
Restaurant operating margin for the full year is expected to be
approximately 16.0 percent, depending on same-store sales and
commodity inflation.
-
SG&A as a percentage of revenue is expected to be in the high-14
percent range as compared to 14.7% in fiscal 2012. G&A as a percentage
of system-wide sales is expected to decline to approximately 4.4% in
fiscal 2013 from 4.6% in fiscal 2012. The increase in expected SG&A
costs as compared to the company’s previous guidance is due primarily
to higher anticipated incentive compensation.
-
Impairment and other charges as a percentage of revenue are expected
to be approximately 70 basis points, excluding restructuring charges.
-
The company no longer provides guidance with respect to refranchising
gains or proceeds.
-
Approximately 20 new Jack in the Box restaurants are expected to open,
including approximately 6 company locations.
-
70 to 75 new Qdoba restaurants are expected to open, of which
approximately 40 are expected to be company locations.
-
Capital expenditures are expected to be $95 to $105 million.
-
The tax rate is expected to be approximately 35 to 36 percent.
-
Operating earnings per share, which the company defines as diluted
earnings per share from continuing operations on a GAAP basis
excluding restructuring charges and gains from refranchising, are now
expected to range from $1.55 to $1.65 in fiscal 2013 as compared to
operating earnings per share of $1.20 in fiscal 2012.
-
Diluted earnings per share includes approximately $0.03 of incentive
payments to Jack in the Box franchisees in fiscal 2013 to complete the
installation of new signage as compared to $0.11 in fiscal 2012 to
complete the re-image program.
-
Diluted weighted-average shares outstanding for the full year are
expected to be approximately the same as last year.
Conference call
The company will host a conference call for financial analysts and
investors on Thursday, May 16, 2013, beginning at 8:30 a.m. PT (11:30
a.m. ET). The conference call will be broadcast live over the Internet
via the Jack in the Box website. To access the live call through the
Internet, log onto the Investors section of the Jack in the Box Inc.
website at http://investors.jackinthebox.com
at least 15 minutes prior to the event in order to download and install
any necessary audio software. A replay of the call will be available
through the Jack in the Box Inc. corporate website for 21 days,
beginning at approximately 11:30 a.m. PT on May 16.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant
company that operates and franchises Jack in the Box® restaurants,
one of the nation’s largest hamburger chains, with more than 2,200
restaurants in 21 states. Additionally, through a wholly owned
subsidiary, the company operates and franchises Qdoba Mexican Grill®,
a leader in fast-casual dining, with more than 600 restaurants in 44
states, the District of Columbia and Canada. For more information on
Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com
or www.qdoba.com.
Safe harbor statement
This press release contains forward-looking statements within the
meaning of the federal securities laws. Such statements are subject to
substantial risks and uncertainties. A variety of factors could cause
the company’s actual results to differ materially from those expressed
in the forward-looking statements, including the following: the success
of new products and marketing initiatives; the impact of competition,
unemployment, trends in consumer spending patterns and commodity costs;
the company’s ability to achieve and manage its planned growth, which is
affected by the availability of a sufficient number of suitable new
restaurant sites, the performance of new restaurants, and risks relating
to expansion into new markets; and stock market volatility. These and
other factors are discussed in the company’s annual report on Form 10-K
and its periodic reports on Form 10-Q filed with the Securities and
Exchange Commission which are available online at http://investors.jackinthebox.com
or in hard copy upon request. The company undertakes no obligation to
update or revise any forward-looking statement, whether as the result of
new information or otherwise.
JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)
Operating earnings per share, a non-GAAP measure, is defined by the
company as diluted earnings per share from continuing operations on a
GAAP basis excluding restructuring charges and gains or losses from
refranchising. Management believes this non-GAAP financial measure
provides important supplemental information to assist investors in
analyzing the performance of the company’s core business. In addition,
the company uses operating earnings per share in establishing
performance goals for purposes of executive compensation. The company
encourages investors to rely upon its GAAP numbers but includes this
non-GAAP financial measure as a supplemental metric to assist investors.
This non-GAAP financial measure should not be considered as a substitute
for, or superior to, financial measures calculated in accordance with
GAAP. In addition, this non-GAAP financial measure used by the company
may be calculated differently from, and therefore may not be comparable
to, similarly titled measures used by other companies.
Below is a reconciliation of non-GAAP operating earnings per share to
the most directly comparable GAAP measure, diluted earnings per share
from continuing operations. Figures may not add due to rounding.
|
|
12 Weeks Ended
|
|
28 Weeks Ended
|
|
|
April 14, 2013
|
April 15, 2012
|
|
April 14, 2013
|
April 15, 2012
|
Diluted earnings per share from continuing operations – GAAP
|
|
$
|
0.30
|
$
|
0.48
|
|
|
$
|
0.84
|
$
|
0.75
|
|
Plus: Restructuring charges
|
|
|
-
|
|
0.02
|
|
|
|
0.02
|
|
0.02
|
|
Less: (Gains)/losses from refranchising
|
|
|
0.03
|
|
(0.21
|
)
|
|
|
0.03
|
|
(0.22
|
)
|
Operating earnings per share – Non-GAAP
|
|
$
|
0.33
|
$
|
0.30
|
|
|
$
|
0.88
|
$
|
0.55
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
Quarter
|
|
Year-to-Date
|
|
|
April 14,
2013
|
|
April 15,
2012
|
|
April 14,
2013
|
|
April 15,
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
$
|
277,197
|
|
|
$
|
290,803
|
|
|
$
|
637,291
|
|
|
$
|
654,905
|
|
Franchise revenues
|
|
|
78,426
|
|
|
|
75,681
|
|
|
|
183,855
|
|
|
|
169,500
|
|
|
|
|
355,623
|
|
|
|
366,484
|
|
|
|
821,146
|
|
|
|
824,405
|
|
Operating costs and expenses, net:
|
|
|
|
|
|
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
|
90,688
|
|
|
|
94,910
|
|
|
|
206,789
|
|
|
|
217,017
|
|
Payroll and employee benefits
|
|
|
79,620
|
|
|
|
84,566
|
|
|
|
183,684
|
|
|
|
191,377
|
|
Occupancy and other
|
|
|
63,152
|
|
|
|
66,184
|
|
|
|
146,506
|
|
|
|
152,127
|
|
Total company restaurant costs
|
|
|
233,460
|
|
|
|
245,660
|
|
|
|
536,979
|
|
|
|
560,521
|
|
Franchise costs
|
|
|
39,661
|
|
|
|
37,996
|
|
|
|
92,149
|
|
|
|
87,855
|
|
Selling, general and administrative expenses
|
|
|
52,972
|
|
|
|
54,497
|
|
|
|
120,308
|
|
|
|
120,214
|
|
Impairment and other charges, net
|
|
|
2,382
|
|
|
|
5,074
|
|
|
|
5,645
|
|
|
|
9,425
|
|
Losses (gains) on the sale of company-operated restaurants
|
|
|
2,418
|
|
|
|
(14,078
|
)
|
|
|
1,670
|
|
|
|
(15,200
|
)
|
|
|
|
330,893
|
|
|
|
329,149
|
|
|
|
756,751
|
|
|
|
762,815
|
|
Earnings from operations
|
|
|
24,730
|
|
|
|
37,335
|
|
|
|
64,395
|
|
|
|
61,590
|
|
Interest expense, net
|
|
|
3,426
|
|
|
|
4,534
|
|
|
|
8,791
|
|
|
|
10,591
|
|
Earnings from continuing operations and before income taxes
|
|
|
21,304
|
|
|
|
32,801
|
|
|
|
55,604
|
|
|
|
50,999
|
|
Income taxes
|
|
|
7,894
|
|
|
|
11,169
|
|
|
|
18,250
|
|
|
|
17,417
|
|
Earnings from continuing operations
|
|
|
13,410
|
|
|
|
21,632
|
|
|
|
37,354
|
|
|
|
33,582
|
|
Losses from discontinued operations, net of income tax benefit
|
|
|
(120
|
)
|
|
|
-
|
|
|
|
(3,375
|
)
|
|
|
-
|
|
Net earnings
|
|
$
|
13,290
|
|
|
$
|
21,632
|
|
|
$
|
33,979
|
|
|
$
|
33,582
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share - basic:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
0.31
|
|
|
$
|
0.49
|
|
|
$
|
0.86
|
|
|
$
|
0.77
|
|
Losses from discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.08
|
)
|
|
|
—
|
|
Net earnings per share (1)
|
|
$
|
0.30
|
|
|
$
|
0.49
|
|
|
$
|
0.78
|
|
|
$
|
0.77
|
|
Net earnings per share - diluted:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
0.30
|
|
|
$
|
0.48
|
|
|
$
|
0.84
|
|
|
$
|
0.75
|
|
Losses from discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.08
|
)
|
|
|
—
|
|
Net earnings per share (1)
|
|
$
|
0.29
|
|
|
$
|
0.48
|
|
|
$
|
0.76
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,747
|
|
|
|
43,937
|
|
|
|
43,319
|
|
|
|
43,896
|
|
Diluted
|
|
|
45,274
|
|
|
|
44,911
|
|
|
|
44,736
|
|
|
|
44,775
|
|
|
|
|
|
|
|
|
|
|
(1) Earnings per share may not add due to rounding
|
|
|
|
|
|
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Dollars in thousands, except share data)
|
(Unaudited)
|
|
|
|
April 14,
2013
|
|
September 30,
2012
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,202
|
|
|
$
|
8,469
|
|
Accounts and other receivables, net
|
|
|
52,185
|
|
|
|
78,798
|
|
Inventories
|
|
|
8,713
|
|
|
|
7,752
|
|
Prepaid expenses
|
|
|
31,992
|
|
|
|
32,821
|
|
Deferred income taxes
|
|
|
26,931
|
|
|
|
26,932
|
|
Assets held for sale and leaseback
|
|
|
39,569
|
|
|
|
45,443
|
|
Assets of discontinued operations held for sale
|
|
|
—
|
|
|
|
30,591
|
|
Other current assets
|
|
|
452
|
|
|
|
375
|
|
Total current assets
|
|
|
170,044
|
|
|
|
231,181
|
|
Property and equipment, at cost
|
|
|
1,543,068
|
|
|
|
1,529,650
|
|
Less accumulated depreciation and amortization
|
|
|
(736,854
|
)
|
|
|
(708,858
|
)
|
Property and equipment, net
|
|
|
806,214
|
|
|
|
820,792
|
|
Goodwill
|
|
|
148,935
|
|
|
|
140,622
|
|
Other assets, net
|
|
|
276,544
|
|
|
|
271,130
|
|
|
|
$
|
1,401,737
|
|
|
$
|
1,463,725
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
20,960
|
|
|
$
|
15,952
|
|
Accounts payable
|
|
|
24,123
|
|
|
|
94,713
|
|
Accrued liabilities
|
|
|
160,581
|
|
|
|
164,637
|
|
Total current liabilities
|
|
|
205,664
|
|
|
|
275,302
|
|
Long-term debt, net of current maturities
|
|
|
369,728
|
|
|
|
405,276
|
|
Other long-term liabilities
|
|
|
369,667
|
|
|
|
371,202
|
|
Stockholders’ equity:
|
|
|
|
|
Preferred stock $0.01 par value, 15,000,000 shares authorized, none
issued
|
|
|
—
|
|
|
|
—
|
|
Common stock $0.01 par value, 175,000,000 shares authorized,
77,559,191 and 75,827,894
issued, respectively
|
|
|
776
|
|
|
|
758
|
|
Capital in excess of par value
|
|
|
266,500
|
|
|
|
221,100
|
|
Retained earnings
|
|
|
1,154,650
|
|
|
|
1,120,671
|
|
Accumulated other comprehensive loss
|
|
|
(129,344
|
)
|
|
|
(136,013
|
)
|
Treasury stock, at cost, 33,362,162 and 31,955,606 shares,
respectively
|
|
|
(835,904
|
)
|
|
|
(794,571
|
)
|
Total stockholders’ equity
|
|
|
456,678
|
|
|
|
411,945
|
|
|
|
$
|
1,401,737
|
|
|
$
|
1,463,725
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Year-to-Date
|
|
|
April 14,
2013
|
|
April 15,
2012
|
Cash flows from operating activities:
|
|
|
|
|
Net earnings
|
|
$
|
33,979
|
|
|
$
|
33,582
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
52,590
|
|
|
|
51,874
|
|
Deferred finance cost amortization
|
|
|
1,249
|
|
|
|
1,431
|
|
Deferred income taxes
|
|
|
2,536
|
|
|
|
(2,560
|
)
|
Share-based compensation expense
|
|
|
7,599
|
|
|
|
3,562
|
|
Pension and postretirement expense
|
|
|
16,772
|
|
|
|
14,372
|
|
Gains on cash surrender value of company-owned life insurance
|
|
|
(5,669
|
)
|
|
|
(8,427
|
)
|
Losses (gains) on the sale of company-operated restaurants
|
|
|
1,670
|
|
|
|
(15,200
|
)
|
Losses on the disposition of property and equipment
|
|
|
416
|
|
|
|
2,858
|
|
Impairment charges and other
|
|
|
4,828
|
|
|
|
2,109
|
|
Loss on early retirement of debt
|
|
|
939
|
|
|
|
—
|
|
Changes in assets and liabilities, excluding acquisitions and
dispositions:
|
|
|
|
|
Accounts and other receivables
|
|
|
25,227
|
|
|
|
(8,680
|
)
|
Inventories
|
|
|
25,883
|
|
|
|
5,213
|
|
Prepaid expenses and other current assets
|
|
|
751
|
|
|
|
(4,627
|
)
|
Accounts payable
|
|
|
(32,036
|
)
|
|
|
(6,178
|
)
|
Accrued liabilities
|
|
|
(4,256
|
)
|
|
|
6,237
|
|
Pension and postretirement contributions
|
|
|
(7,052
|
)
|
|
|
(6,573
|
)
|
Other
|
|
|
(3,821
|
)
|
|
|
595
|
|
Cash flows provided by operating activities
|
|
|
121,605
|
|
|
|
69,588
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
|
(41,754
|
)
|
|
|
(40,609
|
)
|
Purchases of assets intended for sale and leaseback
|
|
|
(25,165
|
)
|
|
|
(22,000
|
)
|
Proceeds from sale and leaseback of assets
|
|
|
22,892
|
|
|
|
9,312
|
|
Proceeds from the sale of company-operated restaurants
|
|
|
2,866
|
|
|
|
21,964
|
|
Collections on notes receivable
|
|
|
2,987
|
|
|
|
9,669
|
|
Disbursements for loans to franchisees
|
|
|
—
|
|
|
|
(3,977
|
)
|
Acquisitions of franchise-operated restaurants
|
|
|
(11,014
|
)
|
|
|
(39,195
|
)
|
Other
|
|
|
3,694
|
|
|
|
244
|
|
Cash flows used in investing activities
|
|
|
(45,494
|
)
|
|
|
(64,592
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings on revolving credit facilities
|
|
|
479,000
|
|
|
|
333,020
|
|
Repayments of borrowings on revolving credit facilities
|
|
|
(539,000
|
)
|
|
|
(308,324
|
)
|
Proceeds from issuance of debt
|
|
|
200,000
|
|
|
|
—
|
|
Principal repayments on debt
|
|
|
(170,540
|
)
|
|
|
(10,662
|
)
|
Debt issuance costs
|
|
|
(4,392
|
)
|
|
|
(741
|
)
|
Proceeds from issuance of common stock
|
|
|
37,113
|
|
|
|
2,015
|
|
Repurchases of common stock
|
|
|
(40,465
|
)
|
|
|
(6,901
|
)
|
Excess tax benefits from share-based compensation arrangements
|
|
|
599
|
|
|
|
287
|
|
Change in book overdraft
|
|
|
(36,693
|
)
|
|
|
(13,806
|
)
|
Cash flows used in financing activities
|
|
|
(74,378
|
)
|
|
|
(5,112
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
1,733
|
|
|
|
(116
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
8,469
|
|
|
|
11,424
|
|
Cash and cash equivalents at end of period
|
|
$
|
10,202
|
|
|
$
|
11,308
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
SUPPLEMENTAL INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
The following table presents certain income and expense items
included in our consolidated statements of earnings as a percentage
of total revenues, unless otherwise indicated. Percentages may not
add due to rounding.
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGS DATA
|
|
|
Quarter
|
|
Year-to-Date
|
|
April 14,
2013
|
|
April 15,
2012
|
|
April 14,
2013
|
|
April 15,
2012
|
Revenues:
|
|
|
|
|
|
|
|
Company restaurant sales
|
77.9
|
%
|
|
79.3
|
%
|
|
77.6
|
%
|
|
79.4
|
%
|
Franchise revenues
|
22.1
|
%
|
|
20.7
|
%
|
|
22.4
|
%
|
|
20.6
|
%
|
Total revenues
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Operating costs and expenses, net:
|
|
|
|
|
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
Food and packaging (1)
|
32.7
|
%
|
|
32.6
|
%
|
|
32.4
|
%
|
|
33.1
|
%
|
Payroll and employee benefits (1)
|
28.7
|
%
|
|
29.1
|
%
|
|
28.8
|
%
|
|
29.2
|
%
|
Occupancy and other (1)
|
22.8
|
%
|
|
22.8
|
%
|
|
23.0
|
%
|
|
23.2
|
%
|
Total company restaurant costs (1)
|
84.2
|
%
|
|
84.5
|
%
|
|
84.3
|
%
|
|
85.6
|
%
|
Franchise costs (1)
|
50.6
|
%
|
|
50.2
|
%
|
|
50.1
|
%
|
|
51.8
|
%
|
Selling, general and administrative expenses
|
14.9
|
%
|
|
14.9
|
%
|
|
14.7
|
%
|
|
14.6
|
%
|
Impairment and other charges, net
|
0.7
|
%
|
|
1.4
|
%
|
|
0.7
|
%
|
|
1.1
|
%
|
Gains on the sale of company-operated restaurants
|
0.7
|
%
|
|
(3.8
|
)%
|
|
0.2
|
%
|
|
(1.8
|
)%
|
Earnings from operations
|
7.0
|
%
|
|
10.2
|
%
|
|
7.8
|
%
|
|
7.5
|
%
|
Income tax rate (2)
|
37.1
|
%
|
|
34.1
|
%
|
|
32.8
|
%
|
|
34.2
|
%
|
|
|
|
|
|
|
|
|
(1) As a percentage of the related sales and/or revenues.
|
(2) As a percentage of earnings from continuing operations and
before income taxes.
|
|
|
|
|
The following table presents Jack in the Box and Qdoba company
restaurant sales, costs and costs as a percentage of the related
sales. Percentages may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL COMPANY-OPERATED RESTAURANTS STATEMENTS OF EARNINGS
DATA
|
(Dollars in thousands)
|
|
|
Quarter
|
|
Year-to-Date
|
|
April 14, 2013
|
|
April 15, 2012
|
|
April 14, 2013
|
|
April 15, 2012
|
Jack in the Box:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
$
|
203,439
|
|
|
|
$
|
227,828
|
|
|
|
$
|
470,615
|
|
|
|
$
|
522,181
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
68,195
|
|
33.5
|
%
|
|
|
76,508
|
|
33.6
|
%
|
|
|
155,993
|
|
33.1
|
%
|
|
|
178,098
|
|
34.1
|
%
|
Payroll and employee benefits
|
|
58,108
|
|
28.6
|
%
|
|
|
67,128
|
|
29.5
|
%
|
|
|
135,110
|
|
28.7
|
%
|
|
|
153,697
|
|
29.4
|
%
|
Occupancy and other
|
|
42,421
|
|
20.9
|
%
|
|
|
48,900
|
|
21.5
|
%
|
|
|
99,009
|
|
21.0
|
%
|
|
|
114,191
|
|
21.9
|
%
|
Total company restaurant costs
|
$
|
168,724
|
|
82.9
|
%
|
|
$
|
192,536
|
|
84.5
|
%
|
|
$
|
390,112
|
|
82.9
|
%
|
|
$
|
445,986
|
|
85.4
|
%
|
Qdoba:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
$
|
73,758
|
|
|
|
$
|
62,975
|
|
|
|
$
|
166,676
|
|
|
|
$
|
132,724
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
22,493
|
|
30.5
|
%
|
|
|
18,402
|
|
29.2
|
%
|
|
|
50,796
|
|
30.5
|
%
|
|
|
38,919
|
|
29.3
|
%
|
Payroll and employee benefits
|
|
21,512
|
|
29.2
|
%
|
|
|
17,438
|
|
27.7
|
%
|
|
|
48,574
|
|
29.1
|
%
|
|
|
37,680
|
|
28.4
|
%
|
Occupancy and other
|
|
20,731
|
|
28.1
|
%
|
|
|
17,284
|
|
27.4
|
%
|
|
|
47,497
|
|
28.5
|
%
|
|
|
37,936
|
|
28.6
|
%
|
Total company restaurant costs
|
$
|
64,736
|
|
87.8
|
%
|
|
$
|
53,124
|
|
84.4
|
%
|
|
$
|
146,867
|
|
88.1
|
%
|
|
$
|
114,535
|
|
86.3
|
%
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
SUPPLEMENTAL INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes the changes in the number and mix of
Jack in the Box and Qdoba company and franchise restaurants in each
fiscal year:
|
|
|
|
April 14, 2013
|
|
April 15, 2012
|
|
|
Company
|
|
Franchise
|
|
Total
|
|
Company
|
|
Franchise
|
|
Total
|
Jack in the Box:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
547
|
|
|
1,703
|
|
|
2,250
|
|
|
629
|
|
|
1,592
|
|
|
2,221
|
|
New
|
|
3
|
|
|
9
|
|
|
12
|
|
|
9
|
|
|
14
|
|
|
23
|
|
Refranchised
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|
(37
|
)
|
|
37
|
|
|
—
|
|
Acquired from franchisees
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Closed
|
|
(1
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
End of period
|
|
546
|
|
|
1,710
|
|
|
2,256
|
|
|
601
|
|
|
1,641
|
|
|
2,242
|
|
% of Jack in the Box system
|
|
24
|
%
|
|
76
|
%
|
|
100
|
%
|
|
27
|
%
|
|
73
|
%
|
|
100
|
%
|
% of consolidated system
|
|
62
|
%
|
|
85
|
%
|
|
78
|
%
|
|
68
|
%
|
|
84
|
%
|
|
79
|
%
|
Qdoba:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
316
|
|
|
311
|
|
|
627
|
|
|
245
|
|
|
338
|
|
|
583
|
|
New
|
|
12
|
|
|
20
|
|
|
32
|
|
|
8
|
|
|
15
|
|
|
23
|
|
Acquired from franchisees
|
|
12
|
|
|
(12
|
)
|
|
—
|
|
|
36
|
|
|
(36
|
)
|
|
—
|
|
Closed
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
End of period
|
|
340
|
|
|
307
|
|
|
647
|
|
|
289
|
|
|
316
|
|
|
605
|
|
% of Qdoba system
|
|
53
|
%
|
|
47
|
%
|
|
100
|
%
|
|
48
|
%
|
|
52
|
%
|
|
100
|
%
|
% of consolidated system
|
|
38
|
%
|
|
15
|
%
|
|
22
|
%
|
|
32
|
%
|
|
16
|
%
|
|
21
|
%
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total system
|
|
886
|
|
|
2,017
|
|
|
2,903
|
|
|
890
|
|
|
1,957
|
|
|
2,847
|
|
% of consolidated system
|
|
31
|
%
|
|
69
|
%
|
|
100
|
%
|
|
31
|
%
|
|
69
|
%
|
|
100
|
%
|
Source: Jack in the Box Inc.
Jack in the Box Inc.
Investor Contact:
Carol DiRaimo,
(858) 571-2407
Media Contact:
Brian Luscomb, (858)
571-2291