Form 8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

 FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 20, 2004

BRINKER INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State of incorporation)

1-10275
(Commission File Number)

            74-1914582
            (IRS employment
            identification no.)

6820 LBJ Freeway
Dallas, Texas 75240
(Address of principal executive offices)

 

Registrant's telephone number, including area code    972-980-9917


 

Item 7.  Financial Statements and Exhibits.

              (c)     Exhibits.

               99   Press Release, dated January 20, 2004.

Item 12.  Results of Operations and Financial Condition.

              On January 20, 2004, Brinker International, Inc. issued a Press Release announcing its second quarter fiscal 2004 results.  The information in the Press Release attached hereto as Exhibit 99 is furnished pursuant to Item 12.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BRINKER INTERNATIONAL, INC.

Date: January 23, 2004

By:        /s/ Douglas H. Brooks                       

     Douglas H. Brooks

     President and Chief Executive Officer

   

Exhibit 99

EXHIBIT 99

FOR IMMEDIATE RELEASE                                        

Contacts:  Louis Adams, Media Relations                                   Hil Davis, Investor Relations

                (972) 770-4967                                                           	(972) 770-7228

BRINKER INTERNATIONAL REPORTS SECOND QUARTER EARNINGS

 DALLAS (Jan. 20, 2004) - Casual dining leader Brinker International, Inc. (NYSE - EAT), reported earnings per share of $0.45 for the company's second quarter ended December 24, 2003.  Net income for the second quarter of fiscal 2004 was $44.1 million or $0.45 diluted earnings per share as compared to $37.2 million or $0.38 per share reported in the same quarter of fiscal 2003.

During the second quarter of fiscal 2004, Brinker completed the sale of its Cozymel's brand resulting in an additional $1.4 million after-tax loss.  Brinker also recognized after-tax gains totaling $1.6 million as a result of the sale of four Chili's to a franchise partner and the sale of one real estate property.

Exclusive of certain gains and charges, net income and diluted earnings per share for second quarter fiscal 2004 and 2003 would have been as follows (net of taxes):

Second Quarter FY '04
(in millions, except per share amounts)


Net Income

 

           Diluted EPS

As reported

  $     44.1

$      0.45

  Cozymel's loss

    1.4

        0.01

  Chili's/real estate gains

    (1.6)

        (0.01)

Adjusted

  $     43.9

$     0.45


Second Quarter FY '03
(in millions, except per share amounts)

Net Income

 


           Diluted EPS

As reported

  $     37.2 

 

$     0.38

  Impairment on 10 restaurants

    3.5

 

       0.04

  PIZZAAHHH! impairment

    2.8

 

       0.02

Adjusted

  $     43.5

 

              $      0.44



Brinker reported second quarter revenues for the 13-week period of $886.5 million, an increase of 11.6 percent compared with the $794.5 million reported for the same period in fiscal 2003.  These revenue gains were primarily driven by a combination of 9.3 percent capacity gains as measured by average-weighted sales weeks and a 2.3 percent increase in comparable store sales for all Brinker concepts.  By brand, quarterly comparable store sales increased 1.9 percent at Chili's, 1.2 percent at Macaroni Grill, 5.0 percent at Maggiano's and 4.5 percent at On The Border.

For the four-week period ending December 24, 2003, comparable store sales increased 4.9 percent. December comparable store sales for the four reported brands were as follows:

                                               Dec FY '04             Dec FY '03
               Chili's                                   4.2%                    -1.0%
               Macaroni Grill                      4.4%                     -6.1%
               Maggiano's                           8.8%                     -3.7%
               On The Border                     7.8%                     -7.7%
    

Comparable store sales included an overall price increase of 2.1 percent for Brinker International.  By brand, price increases were 2.3 percent at Chili's, 2.0 percent at Macaroni Grill, 1.6 percent at Maggiano's and 1.3 percent at On The Border.  Product mix-shift declined by 0.5 percent for Brinker International.  By brand, product mix-shift declined 0.7 percent at Chili's and 1.1 percent at On The Border, was flat for Macaroni Grill and increased 2.3 percent at Maggiano's.

December comparable store sales were favorably impacted by approximately 3 percent due to the calendar shift of Christmas Day from the December period in fiscal 2003 to the January period in fiscal 2004.  This same calendar shift will have a negative impact of approximately 3 percent on January comparable store sales. 

Brinker's initial estimate for third quarter fiscal 2004 earnings per share is $0.51 to $0.53.  Third quarter estimates are based on expectations of capacity growth of approximately 8 to 9 percent as measured by average-weighted sales weeks and comparable store sales growth in the 0 to 2 percent range.

 


The company continues to be active in its share repurchase program, acquiring approximately 1.2 million shares during the second quarter.  At the end of the quarter, approximately $27.5 million was available under the company's share repurchase program.

Investors and interested parties are invited to listen to today's conference call as management will provide further details of the quarter and an outlook for future periods.  The call will be broadcast live on the Brinker Web site (www.brinker.com) at 9 a.m. CST today (January 20).  For those who are unable to listen to the live broadcast, a replay of the call will be available shortly thereafter and will remain on the Brinker Web site until the end of the day January 23, 2004.     

At the end of the second quarter of fiscal 2004, Brinker International either owned, operated, franchised, or was involved in the ownership of 1,450 restaurants under the names Chili's Grill & Bar (944 units), Romano's Macaroni Grill (213 units), Maggiano's Little Italy (28 units), On The Border Mexican Grill & Cantina (132 units), Corner Bakery Cafe (90 units), Big Bowl Asian Kitchen (20 units), and Rockfish Seafood Grill (23 units).

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by general business and economic conditions, the seasonality of the company's business, adverse weather conditions, future commodity prices, fuel and utility costs and availability, governmental regulations and inflation.

# # #

 


BRINKER INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

                                                                                       Thirteen Week Periods Ended                   Twenty Six Week Periods Ended

December 24,

December 25,

   December 24,

    December 25,

2003

2002

2003

2002

 

 

 

 

Revenues

$   886,490

$   794,510

$ 1,757,388

$ 1,568,402

 

 

 

 

 

Operating Costs and Expenses:

 

 

 

 

  Cost of sales

245,217

217,671

485,119

428,097

  Restaurant expenses (1)

492,064

447,343

978,422

870,949

  Depreciation and amortization

43,366

38,701

85,775

75,858

  General and administrative

     36,626

     31,776

     69,922

     64,321

   Total operating costs and expenses

    817,273

    735,491

  1,619,238

  1,439,225

 

 

 

 

 

Operating income

69,217

59,019

138,150

129,177

 

 

 

 

 

Interest expense

2,933

2,450

6,251

6,421

Other, net

      1,127

        760

        870

      (830)

 

 

 

 

Income before provision for income taxes

65,157

55,809

131,029

123,586

Provision for income taxes

     21,046

     18,584

     42,323

     41,357

 

 

 

 

 

    Net income

$    44,111

$    37,225

$    88,706

$    82,229

 

 

 

 

 

 

 

 

 

 

Basic net income per share

$      0.46

$      0.38

$      0.92

$      0.85

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

$      0.45

$      0.38

$      0.90

$      0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average

 

 

 

 

  shares outstanding

     96,156

     96,784

     96,780

     96,981

 

 

 

 

 

Diluted weighted average

 

 

 

 

  shares outstanding

     97,731

     98,848

     98,535

     99,041

 

 

 

 

 

(1) Restaurant expenses in the current period include a loss on the sale of Cozymel's totaling $2.0 million and a gain on the sale of four Chili's to a franchise partner and the sale of one real estate property totaling $2.4 million.  Restaurant expenses in the prior period include approximately $9.5 million in charges associated with store closings and impairment charges.

 

BRINKER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

December 24,

June 25,

 

ASSETS

2003

2003

 

  Total current assets

$    208,575

$    166,467

 

  Net property and equipment

   1,537,533

   1,499,572

 

  Total other assets

     278,303

     277,251

 

  Total assets

$  2,024,411

$  1,943,290

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

  Total current liabilities

$    365,671

$    310,211

 

  Long-term debt, less current installments

     354,415

     353,785

 

  Other liabilities

     152,168

     139,044

 

  Total shareholders' equity

   1,152,157

   1,140,250

 

  Total liabilities and shareholders' equity

$  2,024,411

$  1,943,290

 

 

 

   FOR ADDITIONAL INFORMATION, CONTACT:
 

HIL DAVIS
INVESTOR RELATIONS
(972) 770-7228
6820 LBJ FREEWAY
DALLAS, TEXAS 75240



BRINKER INTERNATIONAL, INC.

UNITS SUMMARY

 

Total Units

Second Quarter Fiscal 2004

Total Units

Projected Openings

Sep. 24, 2003

Net Activity

Dec. 24, 2003

 Fiscal 2004

Company-Owned Units:

 

  

 

 

  Chili's

711

 15

726

70-75

  Macaroni Grill

198

   6

204

18-20

  Maggiano's

28

   -

28

3-4

  On The Border

114

    -

114

4-5

  Cozymel's

16

  (16)

-

-

  Corner Bakery

86

    1

87

5-8

  Big Bowl

   19

    1

   20

    2-3

1,172

   7

1,179

102-115

 

 

 

 

JV/Franchise Units:

 

 

 

 

  Chili's

210

   8

218

18-21

  Macaroni Grill

9

   -

9

2-3

  On The Border

18

   -

18

-

  Corner Bakery

3

   -

3

-

  Rockfish

   22

    1

   23

    4-6

  262

    9

  271

  24-30

 

 

 

 

Total Units:

 

 

 

 

  Chili's

921

 23

944

88-96

  Macaroni Grill

207

  6

213

20-23

  Maggiano's

28

   -

28

3-4

  On The Border

132

   -

132

4-5

  Cozymel's

16

 (16)

-

-

  Corner Bakery

89

   1

90

5-8

  Big Bowl

19

   1

20

2-3

  Rockfish

   22

    1

   23

    4-6

1,434

   16

1,450

126-145