SAN DIEGO--(BUSINESS WIRE)--Nov. 18, 2014--
Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from
continuing operations of $17.4 million, or $0.44 per diluted share, for
the fourth quarter ended September 28, 2014, compared with earnings from
continuing operations of $24.1 million, or $0.54 per diluted share, for
the fourth quarter of fiscal 2013.
Fiscal 2014 earnings from continuing operations totaled $94.8 million,
or $2.26 per diluted share, compared with $82.6 million, or $1.84 per
diluted share in fiscal 2013.
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 $0.54 in the fourth quarter of fiscal 2014 compared
with $0.45 in the prior year quarter. For fiscal year 2014, operating
earnings per share were $2.45 compared with $1.82 last year.
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.
|
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12 Weeks Ended
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52 Weeks Ended
|
|
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Sept. 28,
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|
Sept. 29,
|
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Sept. 28,
|
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Sept. 29,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Diluted earnings per share from continuing operations – GAAP
|
|
$
|
0.44
|
|
$
|
0.54
|
|
|
$
|
2.26
|
|
$
|
1.84
|
|
Restructuring charges
|
|
|
-
|
|
|
0.03
|
|
|
|
0.13
|
|
|
0.05
|
|
(Gains)/losses from refranchising
|
|
|
0.10
|
|
|
(0.13
|
)
|
|
|
0.05
|
|
|
(0.07
|
)
|
Operating earnings per share – Non-GAAP
|
|
$
|
0.54
|
|
$
|
0.45
|
|
|
$
|
2.45
|
|
$
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Lenny Comma, chairman and chief executive officer, said, “Operating
earnings per share for the fourth quarter increased 20 percent, driven
by better than expected same-store sales growth at Qdoba Mexican Grill®
and Jack in the Box®, margin expansion, and a 10 percent
reduction in our diluted share count as we continued to use our growing
free cash flow to return cash to shareholders. This performance capped a
terrific year, with operating earnings per share up approximately 35
percent, the third consecutive year of growth in excess of 30 percent.”
Increase (decrease) in same-store sales:
|
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12 Weeks Ended
|
|
12 Weeks Ended
|
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52 Weeks Ended
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52 Weeks Ended
|
|
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Sept. 28, 2014
|
|
Sept. 29, 2013
|
|
Sept. 28, 2014
|
|
Sept. 29, 2013
|
Jack in the Box®:
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|
|
|
|
|
|
|
|
Company
|
|
3.1%
|
|
(0.2%)
|
|
2.0%
|
|
1.0%
|
Franchise
|
|
3.1%
|
|
(1.7%)
|
|
2.0%
|
|
0.1%
|
System
|
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3.1%
|
|
(1.4%)
|
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2.0%
|
|
0.3%
|
Qdoba®:
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|
|
|
|
|
|
|
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Company
|
|
7.1%
|
|
1.3%
|
|
5.7%
|
|
0.5%
|
Franchise
|
|
8.4%
|
|
2.8%
|
|
6.3%
|
|
1.1%
|
System
|
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7.7%
|
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2.0%
|
|
6.0%
|
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0.8%
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|
|
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“Jack in the Box company same-store sales increased 3.1 percent for the
quarter, above our expectations,” Comma said. “The increase was driven
primarily by growth in our breakfast and late-night dayparts.”
Jack in the Box system same-store sales growth for the quarter exceeded
that of the QSR sandwich segment by 3.3 percentage points for the
comparable period, according to The NPD Group’s SalesTrack® Weekly for
the 12-week time period ended September 28, 2014. Included in this
segment are 16 of the top QSR sandwich and burger chains in the country.
“Qdoba’s same-store sales in the fourth quarter increased 7.1 percent
for company restaurants and 7.7 percent system-wide, our third
consecutive quarter of growth above 7 percent. The top-line momentum
continued with the conclusion of our Mango Mojo campaign, followed by
the return of our popular Queso Diablo as a permanent menu item. In
addition, the performance of our Qdoba company restaurants reflected
less discounting, as well as double-digit growth in catering sales,”
Comma said.
Consolidated restaurant operating margin increased 190 basis points to
18.0 percent of sales in the fourth quarter of 2014, compared with 16.1
percent of sales in the year-ago quarter. Restaurant operating margin
for Jack in the Box restaurants increased 210 basis points to 17.8
percent of sales. The improvement was due primarily to lower food and
packaging costs and the benefit of refranchising, which were partially
offset by higher labor costs resulting from an increase in the
California minimum wage during the quarter. The decrease in food and
packaging costs as a percentage of sales resulted from the benefit of
price increases and favorable product mix changes, which were partially
offset by commodity inflation of approximately 3.2 percent in the
quarter. Restaurant operating margin for Qdoba restaurants increased 130
basis points to 18.5 percent of sales. The benefits of sales leverage,
price increases and less discounting at Qdoba were partially offset by
commodity inflation of approximately 4.0 percent, higher incentive
compensation for restaurant managers and beverage equipment rental costs.
SG&A expense for the fourth quarter increased by $2.2 million and was
15.0 percent of revenues as compared to 14.6 percent in the prior year
quarter. Mark-to-market adjustments on investments supporting the
company’s non-qualified retirement plans negatively impacted SG&A by
$1.5 million in the fourth quarter of 2014 as compared to a positive
impact of $2.0 million in the fourth quarter of 2013, resulting in a
year-over-year increase in SG&A of $3.5 million. In addition, the
increase reflects a $2.0 million increase in incentive and share-based
compensation. These increases were partially offset by a $4.0 million
reduction in pension expense.
The company is continuing its efforts to improve its cost structure and
identify opportunities to reduce G&A as well as improve restaurant
profitability across both brands. Restructuring charges of $0.3 million
relating primarily to severance costs were recorded during the fourth
quarter of 2014, as compared to $2.2 million, or approximately $0.03 per
diluted share, during the fourth quarter of 2013. These charges are
included in “Impairment and other charges, net” in the accompanying
consolidated statements of earnings.
Losses on the sale of company-operated restaurants were $5.8 million in
the fourth quarter, or approximately $0.10 per diluted share, related
primarily to the sale of 23 Jack in the Box restaurants in two markets
in the Southeast during the quarter and the expected sale of the
remaining Jack in the Box market in the Southeast for which the company
has received a signed letter of intent. This loss was partially offset
by additional proceeds received as a result of the extension of
underlying franchise and lease agreements for previously refranchised
Jack in the Box restaurants of $0.6 million. This compares to a gain of
$7.8 million, or approximately $0.13 per diluted share, in the prior
year quarter.
The tax rate for the fourth quarter of 2014 was 32.7 percent versus 28.0
percent for the fourth quarter of 2013, and 35.3 percent in fiscal 2014
as compared to 32.8 percent in fiscal 2013. The tax rate for fiscal 2014
was slightly lower than the company’s most recent guidance due to the
benefit of a change in the California tax law which was partially offset
by the market performance of insurance investment products used to fund
certain non-qualified retirement plans. Changes in the cash value of the
insurance products are not deductible or taxable.
In the third quarter of 2013, 62 company-operated Qdoba restaurants were
closed, and the results of operations, impairment charges, lease
obligations and other exit costs for these restaurants are included in
discontinued operations in the accompanying consolidated statements of
earnings for all periods presented. Discontinued operations for the
fourth quarter of fiscal 2014 include after-tax charges related to the
Qdoba restaurant closures of approximately $0.03 per diluted share, as
compared to $0.02 per diluted share for the fourth quarter of fiscal
2013. In addition, discontinued operations for the fourth quarter of
fiscal 2013 included approximately $0.01 per diluted share related to
the outsourcing of the company’s distribution business which was
completed in fiscal 2013.
Capital Allocation
The company repurchased approximately 697,000 shares of its common stock
in the fourth quarter of 2014 at an average price of $61.19 per share
for an aggregate cost of $42.7 million. During fiscal year 2014, the
company repurchased approximately 5,645,000 shares at an average price
of $56.63 per share, for an aggregate cost of $319.7 million. This
leaves $117.1 million remaining under two stock-buyback programs
authorized by the company’s Board of Directors that expire in November
2015. In November 2014, the company’s Board of Directors authorized an
additional $100 million stock-buyback program that expires in November
2016.
The company also announced today that on November 13, 2014, its Board of
Directors declared a quarterly cash dividend of $0.20 per share on the
company’s common stock. The dividend is payable on December 12, 2014, to
shareholders of record at the close of business on December 1, 2014.
Guidance
The following guidance and underlying assumptions reflect the company’s
current expectations for the first quarter and fiscal year ending
September 27, 2015. Fiscal 2015 is a 52-week year, with 16 weeks in the
first quarter, and 12 weeks in each of the second, third and fourth
quarters.
First quarter fiscal year 2015 guidance
-
Same-store sales are expected to increase approximately 1.0 to 2.0
percent at Jack in the Box company restaurants versus a 2.1 percent
increase in the year-ago quarter.
-
Same-store sales are expected to increase approximately 8.0 to 10.0
percent at Qdoba company restaurants versus a 2.0 percent increase in
the year-ago quarter.
Fiscal year 2015 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 increase approximately 6.0 to 8.0
percent at Qdoba company restaurants.
-
Overall commodity costs are expected to increase by approximately 3
percent for the full year, with higher inflation in the first two
quarters.
-
Restaurant operating margin for the full year is expected to be
approximately 18.8 to 19.6 percent, depending on same-store sales and
commodity inflation.
-
SG&A as a percentage of revenue is expected to be approximately 13.5
to 14.0 percent as compared to 13.9 percent in fiscal 2014, and
reflects $5.0 million of higher pension expense in fiscal 2015. G&A as
a percentage of system-wide sales is expected to decline to
approximately 3.7 percent in fiscal 2015 from 3.8 percent in fiscal
2014.
-
Impairment and other charges as a percentage of revenue are expected
to be approximately 60 basis points.
-
Approximately 10 to 15 new Jack in the Box restaurants are expected to
open system-wide.
-
Approximately 50 to 60 new Qdoba restaurants are expected to open, of
which approximately half are expected to be company locations.
-
Capital expenditures are expected to be $90 to $100 million.
-
The tax rate is expected to be approximately 37 to 38 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 or losses from
refranchising, are expected to range from $2.73 to $2.88 in fiscal
2015 as compared to operating earnings per share of $2.45 in fiscal
2014.
Long-term goals (2016 to 2018)
The company today provided long-term goals for fiscal 2016 to 2018. The
company expects:
-
Annual same-store sales growth of 2 to 3 percent at Jack in the Box
company restaurants and in the mid-single-digit range at Qdoba company
restaurants.
-
Restaurant operating margin of 19.0 to 20.0 percent.
-
G&A of 3.5 to 3.8 percent of consolidated system-wide sales.
-
Jack in the Box system new unit growth of approximately 1 to 2 percent
per year.
-
Qdoba company new unit growth of approximately 40 to 70 restaurants
per year and franchise unit growth of 30 to 40 restaurants per year.
-
Continued return of cash to shareholders through a combination of
share repurchases and dividends.
-
Annual operating earnings per share growth in the mid-teens.
Conference call
The company will host a conference call for financial analysts and
investors on Wednesday, November 19, 2014, 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 Inc. corporate 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 November 19.
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 and Guam. 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 47
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
|
|
52 Weeks Ended
|
|
|
Sept. 28,
|
|
Sept. 29,
|
|
Sept. 28,
|
|
Sept. 29,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Diluted earnings per share from continuing operations – GAAP
|
|
$
|
0.44
|
|
$
|
0.54
|
|
|
$
|
2.26
|
|
$
|
1.84
|
|
Restructuring charges
|
|
|
-
|
|
|
0.03
|
|
|
|
0.13
|
|
|
0.05
|
|
(Gains)/losses from refranchising
|
|
|
0.10
|
|
|
(0.13
|
)
|
|
|
0.05
|
|
|
(0.07
|
)
|
Operating earnings per share – Non-GAAP
|
|
$
|
0.54
|
|
$
|
0.45
|
|
|
$
|
2.45
|
|
$
|
1.82
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
Quarter
|
|
Fiscal Year
|
|
|
September 28,
|
|
September 29,
|
|
September 28,
|
|
September 29,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
$
|
259,912
|
|
|
$
|
255,215
|
|
|
$
|
1,120,912
|
|
|
$
|
1,143,780
|
|
Franchise revenues
|
|
|
84,775
|
|
|
|
82,766
|
|
|
|
363,219
|
|
|
|
346,087
|
|
|
|
|
344,687
|
|
|
|
337,981
|
|
|
|
1,484,131
|
|
|
|
1,489,867
|
|
Operating costs and expenses, net:
|
|
|
|
|
|
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
|
83,219
|
|
|
|
83,426
|
|
|
|
357,338
|
|
|
|
372,685
|
|
Payroll and employee benefits
|
|
|
71,329
|
|
|
|
70,378
|
|
|
|
308,494
|
|
|
|
320,384
|
|
Occupancy and other
|
|
|
58,483
|
|
|
|
60,215
|
|
|
|
247,861
|
|
|
|
255,586
|
|
Total company restaurant costs
|
|
|
213,031
|
|
|
|
214,019
|
|
|
|
913,693
|
|
|
|
948,655
|
|
Franchise costs
|
|
|
42,816
|
|
|
|
41,303
|
|
|
|
182,886
|
|
|
|
173,567
|
|
Selling, general and administrative expenses
|
|
|
51,550
|
|
|
|
49,394
|
|
|
|
206,788
|
|
|
|
220,641
|
|
Impairment and other charges, net
|
|
|
2,275
|
|
|
|
4,385
|
|
|
|
14,908
|
|
|
|
13,439
|
|
(Gains) losses on the sale of company-operated restaurants
|
|
|
5,790
|
|
|
|
(7,819
|
)
|
|
|
3,548
|
|
|
|
(4,640
|
)
|
|
|
|
315,462
|
|
|
|
301,282
|
|
|
|
1,321,823
|
|
|
|
1,351,662
|
|
Earnings from operations
|
|
|
29,225
|
|
|
|
36,699
|
|
|
|
162,308
|
|
|
|
138,205
|
|
Interest expense, net
|
|
|
3,290
|
|
|
|
3,190
|
|
|
|
15,678
|
|
|
|
15,251
|
|
Earnings from continuing operations and before income taxes
|
|
|
25,935
|
|
|
|
33,509
|
|
|
|
146,630
|
|
|
|
122,954
|
|
Income taxes
|
|
|
8,492
|
|
|
|
9,392
|
|
|
|
51,786
|
|
|
|
40,346
|
|
Earnings from continuing operations
|
|
|
17,443
|
|
|
|
24,117
|
|
|
|
94,844
|
|
|
|
82,608
|
|
Losses from discontinued operations, net of income tax benefit
|
|
|
(1,283
|
)
|
|
|
(1,289
|
)
|
|
|
(5,894
|
)
|
|
|
(31,456
|
)
|
Net earnings
|
|
$
|
16,160
|
|
|
$
|
22,828
|
|
|
$
|
88,950
|
|
|
$
|
51,152
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share - basic:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
0.45
|
|
|
$
|
0.56
|
|
|
$
|
2.33
|
|
|
$
|
1.91
|
|
Losses from discontinued operations
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.14
|
)
|
|
|
(0.73
|
)
|
Net earnings per share (1)
|
|
$
|
0.41
|
|
|
$
|
0.53
|
|
|
$
|
2.18
|
|
|
$
|
1.18
|
|
Net earnings per share - diluted:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
0.44
|
|
|
$
|
0.54
|
|
|
$
|
2.26
|
|
|
$
|
1.84
|
|
Losses from discontinued operations
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.14
|
)
|
|
|
(0.70
|
)
|
Net earnings per share (1)
|
|
$
|
0.40
|
|
|
$
|
0.51
|
|
|
$
|
2.12
|
|
|
$
|
1.14
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
38,982
|
|
|
|
43,069
|
|
|
|
40,781
|
|
|
|
43,351
|
|
Diluted
|
|
|
39,918
|
|
|
|
44,532
|
|
|
|
41,973
|
|
|
|
44,899
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.20
|
|
|
$
|
-
|
|
|
$
|
0.40
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
(1) Earnings per share may not add due to rounding
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Dollars in thousands, except share data)
|
(Unaudited)
|
|
|
|
September 28,
|
|
September 29,
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,578
|
|
|
$
|
9,644
|
|
Accounts and other receivables, net
|
|
|
50,014
|
|
|
|
41,749
|
|
Inventories
|
|
|
7,481
|
|
|
|
7,181
|
|
Prepaid expenses
|
|
|
36,314
|
|
|
|
19,970
|
|
Deferred income taxes
|
|
|
36,810
|
|
|
|
26,685
|
|
Assets held for sale
|
|
|
4,766
|
|
|
|
11,875
|
|
Other current assets
|
|
|
597
|
|
|
|
108
|
|
Total current assets
|
|
|
146,560
|
|
|
|
117,212
|
|
Property and equipment, at cost:
|
|
|
|
|
Land
|
|
|
113,622
|
|
|
|
112,673
|
|
Buildings
|
|
|
1,090,360
|
|
|
|
1,068,405
|
|
Restaurant and other equipment
|
|
|
291,443
|
|
|
|
305,769
|
|
Construction in progress
|
|
|
24,522
|
|
|
|
30,066
|
|
|
|
|
1,519,947
|
|
|
|
1,516,913
|
|
Less accumulated depreciation and amortization
|
|
|
(797,818
|
)
|
|
|
(746,054
|
)
|
Property and equipment, net
|
|
|
722,129
|
|
|
|
770,859
|
|
Intangible assets, net
|
|
|
15,604
|
|
|
|
16,390
|
|
Goodwill
|
|
|
149,074
|
|
|
|
148,988
|
|
Other assets, net
|
|
|
237,298
|
|
|
|
265,760
|
|
|
|
$
|
1,270,665
|
|
|
$
|
1,319,209
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
10,871
|
|
|
$
|
20,889
|
|
Accounts payable
|
|
|
31,810
|
|
|
|
36,899
|
|
Accrued liabilities
|
|
|
163,626
|
|
|
|
153,886
|
|
Total current liabilities
|
|
|
206,307
|
|
|
|
211,674
|
|
Long-term debt, net of current maturities
|
|
|
497,012
|
|
|
|
349,393
|
|
Other long-term liabilities
|
|
|
309,435
|
|
|
|
286,124
|
|
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,
80,127,387 and 78,515,171 issued, respectively
|
|
|
801
|
|
|
|
785
|
|
Capital in excess of par value
|
|
|
356,727
|
|
|
|
296,764
|
|
Retained earnings
|
|
|
1,244,897
|
|
|
|
1,171,823
|
|
Accumulated other comprehensive loss
|
|
|
(90,132
|
)
|
|
|
(62,662
|
)
|
Treasury stock, at cost, 41,571,752 and 35,926,269 shares,
respectively
|
|
|
(1,254,382
|
)
|
|
|
(934,692
|
)
|
Total stockholders’ equity
|
|
|
257,911
|
|
|
|
472,018
|
|
|
|
$
|
1,270,665
|
|
|
$
|
1,319,209
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Fiscal Year
|
|
|
September 28,
|
|
September 29,
|
|
|
2014
|
|
2013
|
Cash flows from operating activities:
|
|
|
|
|
Net earnings
|
|
$
|
88,950
|
|
|
$
|
51,152
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
91,384
|
|
|
|
96,219
|
|
Deferred finance cost amortization
|
|
|
2,175
|
|
|
|
2,277
|
|
Deferred income taxes
|
|
|
4,152
|
|
|
|
(18,604
|
)
|
Share-based compensation expense
|
|
|
10,358
|
|
|
|
11,392
|
|
Pension and postretirement expense
|
|
|
13,760
|
|
|
|
31,147
|
|
Gains on cash surrender value of company-owned life insurance
|
|
|
(6,049
|
)
|
|
|
(8,998
|
)
|
(Gains) losses on the sale of company-operated restaurants
|
|
|
3,548
|
|
|
|
(4,640
|
)
|
Losses on the disposition of property and equipment
|
|
|
2,889
|
|
|
|
3,344
|
|
Impairment charges and other
|
|
|
9,225
|
|
|
|
28,230
|
|
Loss on early retirement of debt
|
|
|
789
|
|
|
|
939
|
|
Changes in assets and liabilities, excluding acquisitions and
dispositions:
|
|
|
|
|
Accounts and other receivables
|
|
|
19,589
|
|
|
|
33,994
|
|
Inventories
|
|
|
(300
|
)
|
|
|
27,415
|
|
Prepaid expenses and other current assets
|
|
|
(16,831
|
)
|
|
|
13,117
|
|
Accounts payable
|
|
|
(627
|
)
|
|
|
(26,945
|
)
|
Accrued liabilities
|
|
|
20,358
|
|
|
|
(10,560
|
)
|
Pension and postretirement contributions
|
|
|
(25,349
|
)
|
|
|
(23,886
|
)
|
Other
|
|
|
(16,999
|
)
|
|
|
(6,721
|
)
|
Cash flows provided by operating activities
|
|
|
201,022
|
|
|
|
198,872
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
|
(60,525
|
)
|
|
|
(84,690
|
)
|
Purchases of assets intended for sale and leaseback
|
|
|
(2,801
|
)
|
|
|
(26,058
|
)
|
Proceeds from sale and leaseback of assets
|
|
|
5,698
|
|
|
|
47,431
|
|
Proceeds from the sale of company-operated restaurants
|
|
|
10,536
|
|
|
|
30,619
|
|
Collections on notes receivable
|
|
|
2,974
|
|
|
|
6,448
|
|
Acquisition of franchise-operated restaurants
|
|
|
(1,750
|
)
|
|
|
(12,064
|
)
|
Other
|
|
|
2,889
|
|
|
|
4,375
|
|
Cash flows used in investing activities
|
|
|
(42,979
|
)
|
|
|
(33,939
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings on revolving credit facilities
|
|
|
652,000
|
|
|
|
646,000
|
|
Repayments of borrowings on revolving credit facilities
|
|
|
(521,000
|
)
|
|
|
(721,000
|
)
|
Proceeds from issuance of debt
|
|
|
200,000
|
|
|
|
200,000
|
|
Principal repayments on debt
|
|
|
(193,399
|
)
|
|
|
(175,946
|
)
|
Debt issuance costs
|
|
|
(3,607
|
)
|
|
|
(4,392
|
)
|
Dividends paid on common stock
|
|
|
(15,808
|
)
|
|
|
—
|
|
Proceeds from issuance of common stock
|
|
|
31,748
|
|
|
|
61,993
|
|
Repurchases of common stock
|
|
|
(323,866
|
)
|
|
|
(132,833
|
)
|
Excess tax benefits from share-based compensation arrangements
|
|
|
17,664
|
|
|
|
2,094
|
|
Change in book overdraft
|
|
|
(848
|
)
|
|
|
(39,678
|
)
|
Cash flows used in financing activities
|
|
|
(157,116
|
)
|
|
|
(163,762
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
7
|
|
|
|
4
|
|
Net increase in cash and cash equivalents
|
|
|
934
|
|
|
|
1,175
|
|
Cash and cash equivalents at beginning of period
|
|
|
9,644
|
|
|
|
8,469
|
|
Cash and cash equivalents at end of period
|
|
$
|
10,578
|
|
|
$
|
9,644
|
|
|
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
|
|
Fiscal Year
|
|
|
September 28,
|
|
September 29,
|
|
September 28,
|
|
September 29,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
75.4
|
%
|
|
75.5
|
%
|
|
75.5
|
%
|
|
76.8
|
%
|
Franchise revenues
|
|
24.6
|
%
|
|
24.5
|
%
|
|
24.5
|
%
|
|
23.2
|
%
|
Total revenues
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Operating costs and expenses, net:
|
|
|
|
|
|
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
Food and packaging (1)
|
|
32.0
|
%
|
|
32.7
|
%
|
|
31.9
|
%
|
|
32.6
|
%
|
Payroll and employee benefits (1)
|
|
27.4
|
%
|
|
27.6
|
%
|
|
27.5
|
%
|
|
28.0
|
%
|
Occupancy and other (1)
|
|
22.5
|
%
|
|
23.6
|
%
|
|
22.1
|
%
|
|
22.3
|
%
|
Total company restaurant costs (1)
|
|
82.0
|
%
|
|
83.9
|
%
|
|
81.5
|
%
|
|
82.9
|
%
|
Franchise costs (1)
|
|
50.5
|
%
|
|
49.9
|
%
|
|
50.4
|
%
|
|
50.2
|
%
|
Selling, general and administrative expenses
|
|
15.0
|
%
|
|
14.6
|
%
|
|
13.9
|
%
|
|
14.8
|
%
|
Impairment and other charges, net
|
|
0.7
|
%
|
|
1.3
|
%
|
|
1.0
|
%
|
|
0.9
|
%
|
(Gains) losses on the sale of company-operated restaurants
|
|
1.7
|
%
|
|
(2.3
|
)%
|
|
0.2
|
%
|
|
(0.3
|
)%
|
Earnings from operations
|
|
8.5
|
%
|
|
10.9
|
%
|
|
10.9
|
%
|
|
9.3
|
%
|
Income tax rate (2)
|
|
32.7
|
%
|
|
28.0
|
%
|
|
35.3
|
%
|
|
32.8
|
%
|
|
|
|
|
|
|
|
|
|
(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
|
|
Fiscal Year
|
|
|
September 28, 2014
|
|
September 29, 2013
|
|
September 28, 2014
|
|
September 29, 2013
|
Jack in the Box:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
$
|
177,255
|
|
|
|
$
|
182,657
|
|
|
|
$
|
782,461
|
|
|
|
$
|
850,512
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
|
57,472
|
|
32.4
|
%
|
|
|
61,675
|
|
33.8
|
%
|
|
|
254,891
|
|
32.6
|
%
|
|
|
284,221
|
|
33.4
|
%
|
Payroll and employee benefits
|
|
|
49,687
|
|
28.0
|
%
|
|
|
51,020
|
|
27.9
|
%
|
|
|
218,000
|
|
27.9
|
%
|
|
|
241,149
|
|
28.4
|
%
|
Occupancy and other
|
|
|
38,468
|
|
21.7
|
%
|
|
|
41,226
|
|
22.6
|
%
|
|
|
164,433
|
|
21.0
|
%
|
|
|
182,493
|
|
21.5
|
%
|
Total company restaurant costs
|
|
$
|
145,627
|
|
82.2
|
%
|
|
$
|
153,921
|
|
84.3
|
%
|
|
$
|
637,324
|
|
81.5
|
%
|
|
$
|
707,863
|
|
83.2
|
%
|
Qdoba:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
$
|
82,657
|
|
|
|
$
|
72,558
|
|
|
|
$
|
338,451
|
|
|
|
$
|
293,268
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
|
25,747
|
|
31.1
|
%
|
|
|
21,751
|
|
30.0
|
%
|
|
|
102,447
|
|
30.3
|
%
|
|
|
88,464
|
|
30.2
|
%
|
Payroll and employee benefits
|
|
|
21,642
|
|
26.2
|
%
|
|
|
19,358
|
|
26.7
|
%
|
|
|
90,494
|
|
26.7
|
%
|
|
|
79,235
|
|
27.0
|
%
|
Occupancy and other
|
|
|
20,015
|
|
24.2
|
%
|
|
|
18,989
|
|
26.2
|
%
|
|
|
83,428
|
|
24.6
|
%
|
|
|
73,093
|
|
24.9
|
%
|
Total company restaurant costs
|
|
$
|
67,404
|
|
81.5
|
%
|
|
$
|
60,098
|
|
82.8
|
%
|
|
$
|
276,369
|
|
81.7
|
%
|
|
$
|
240,792
|
|
82.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the detail of our franchise revenues
and costs (dollars in thousands):
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
SUPPLEMENTAL INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
|
Fiscal Year
|
|
|
|
|
September 28,
2014
|
|
|
September 29,
2013
|
|
|
September 28,
2014
|
|
|
September 29,
2013
|
|
Royalties
|
|
$
|
32,992
|
|
|
$
|
31,067
|
|
|
$
|
140,986
|
|
|
|
$
|
132,663
|
|
|
Rental income
|
|
|
50,453
|
|
|
|
48,580
|
|
|
|
217,182
|
|
|
|
|
207,513
|
|
|
Re-image contributions to franchisees
|
|
|
—
|
|
|
|
40
|
|
|
|
(22
|
)
|
|
|
|
(1,990
|
)
|
|
Franchise fees and other
|
|
|
1,330
|
|
|
|
3,079
|
|
|
|
5,073
|
|
|
|
|
7,901
|
|
|
Total franchise revenues
|
|
$
|
84,775
|
|
|
$
|
82,766
|
|
|
$
|
363,219
|
|
|
|
$
|
346,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental expense
|
|
$
|
31,576
|
|
|
$
|
30,282
|
|
|
$
|
135,190
|
|
|
|
$
|
128,173
|
|
|
Depreciation and amortization
|
|
|
7,713
|
|
|
|
7,898
|
|
|
|
33,844
|
|
|
|
|
32,876
|
|
|
Other franchise support costs
|
|
|
3,527
|
|
|
|
3,123
|
|
|
|
13,852
|
|
|
|
|
12,518
|
|
|
Total franchise costs
|
|
$
|
42,816
|
|
|
$
|
41,303
|
|
|
$
|
182,886
|
|
|
|
$
|
173,567
|
|
|
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:
|
|
|
|
|
|
September 28, 2014
|
|
September 29, 2013
|
|
|
|
Company
|
|
Franchise
|
|
Total
|
|
Company
|
|
Franchise
|
|
Total
|
|
Jack in the Box:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
465
|
|
|
1,786
|
|
|
2,251
|
|
|
547
|
|
|
1,703
|
|
|
2,250
|
|
|
New
|
|
1
|
|
|
11
|
|
|
12
|
|
|
6
|
|
|
11
|
|
|
17
|
|
|
Refranchised
|
|
(37
|
)
|
|
37
|
|
|
—
|
|
|
(78
|
)
|
|
78
|
|
|
—
|
|
|
Acquired from franchisees
|
|
4
|
|
|
(4
|
)
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
Closed
|
|
(2
|
)
|
|
(11
|
)
|
|
(13
|
)
|
|
(11
|
)
|
|
(5
|
)
|
|
(16
|
)
|
|
End of period
|
|
431
|
|
|
1,819
|
|
|
2,250
|
|
|
465
|
|
|
1,786
|
|
|
2,251
|
|
|
% of JIB system
|
|
19
|
%
|
|
81
|
%
|
|
100
|
%
|
|
21
|
%
|
|
79
|
%
|
|
100
|
%
|
|
% of consolidated system
|
|
58
|
%
|
|
85
|
%
|
|
78
|
%
|
|
61
|
%
|
|
85
|
%
|
|
79
|
%
|
|
Qdoba:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
296
|
|
|
319
|
|
|
615
|
|
|
316
|
|
|
311
|
|
|
627
|
|
|
New
|
|
16
|
|
|
22
|
|
|
38
|
|
|
34
|
|
|
34
|
|
|
68
|
|
|
Refranchised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
3
|
|
|
—
|
|
|
Acquired from franchisees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
(13
|
)
|
|
—
|
|
|
Closed
|
|
(2
|
)
|
|
(13
|
)
|
|
(15
|
)
|
|
(64
|
)
|
|
(16
|
)
|
|
(80
|
)
|
|
End of period
|
|
310
|
|
|
328
|
|
|
638
|
|
|
296
|
|
|
319
|
|
|
615
|
|
|
% of Qdoba system
|
|
49
|
%
|
|
51
|
%
|
|
100
|
%
|
|
48
|
%
|
|
52
|
%
|
|
100
|
%
|
|
% of consolidated system
|
|
42
|
%
|
|
15
|
%
|
|
22
|
%
|
|
39
|
%
|
|
15
|
%
|
|
21
|
%
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total system
|
|
741
|
|
|
2,147
|
|
|
2,888
|
|
|
761
|
|
|
2,105
|
|
|
2,866
|
|
|
% of consolidated system
|
|
26
|
%
|
|
74
|
%
|
|
100
|
%
|
|
27
|
%
|
|
73
|
%
|
|
100
|
%
|
Source: Jack in the Box Inc.
Jack in the Box Inc.
Investor Contact:
Carol DiRaimo,
(858) 571-2407
or
Media Contact:
Brian Luscomb,
(858) 571-2291