Jack in the Box Inc. Reports Third Quarter Results; Raises FY06 Earnings Forecast; Announces Agreement to Franchise Hawaii Market.SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- Jack in the Box Inc. (NYSE NYSE See: New York Stock Exchange :JBX JBX Jack-In-The-Box (stock symbol) ) today reported that net earnings increased to $27.8 million, or 77 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, in the third quarter ended July 9, 2006, compared with $23.9 million, or 66 cents per diluted share, in the same quarter a year ago. Results exceeded the company's guidance of 65-67 cents per diluted share and analysts' First Call consensus estimate of 66 cents. Year to date, net earnings totaled $74.9 million, or $2.09 per diluted share, compared with $70.0 million, or $1.89 per diluted share, for the first three quarters of fiscal 2005. "We're continuing to make progress in reinventing the Jack in the Box(R) brand," said Linda A. Lang Linda A. Lang is the Chairman and CEO of Jack in the Box. Lang has an MBA from San Diego State University and a BS in finance from the Haas School of Business at the University of California, Berkeley. External links
As required by Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 123R, fiscal 2006 results include the effect of expensing stock options. Fiscal 2005 results did not include the effect of expensing of stock options. The following table shows a 22 percent increase in comparable third-quarter diluted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. , adjusting for the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma effect of stock option expense in fiscal 2005:
Third Quarter Third Quarter
Fiscal 2006 Fiscal 2005
------------- -------------
Diluted EPS $ 0.77 $ 0.66
Comparable adjustments:
Pro forma effect of stock options
as if expensed in FY 2005(1) - (0.03)
------------- -------------
Comparable diluted EPS $ 0.77 $ 0.63
============= =============
(1) Included in SG&A expense in the company's unaudited consolidated
statements of earnings commencing with the adoption of SFAS 123R
in the first quarter of fiscal 2006.
Third quarter financial highlights Earnings per diluted share exceeded by 11 cents the midpoint mid·point n. 1. Mathematics The point of a line segment or curvilinear arc that divides it into two parts of the same length. 2. A position midway between two extremes. of the range previously forecast by the company. Approximately 8 cents of this improvement versus guidance was due primarily to higher restaurant operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: resulting from lower costs related to commodities and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurance, along with profit improvement program initiatives and lower SG&A expense. The remaining 3 cents of the improvement was due to a lower tax rate resulting from tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. initiatives and tax credits. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. at Jack in the Box company restaurants increased 2.9 percent in the third quarter, on top of a 2.8 percent increase in the third quarter of 2005. The improvement was slightly lower than the range previously forecast, with an increase in average check partially offset by slightly lower transactions. Year to date, Jack in the Box same-store sales increased 4.3 percent on top of a 2.7 percent increase for the same period in 2005, with an increase in both average check and transactions. For the third quarter, system same-store sales at Qdoba Mexican Grill Qdoba Mexican Grill (formerly known as Z-TECA Mexican Grill) is a chain of fast casual Fresh Mex restaurants in the United States serving Mexican-style cuisine. The company is owned by Jack in the Box. (R) increased 6.0 percent on top of a 10.3 percent increase in the third quarter of 2005. Year to date, system same-store sales at Qdoba increased 6.5 percent on top of a 12.3 percent increase for the same period last year. Qdoba continued to be accretive to earnings for the quarter. "Qdoba continues to perform well and now has 28 consecutive quarters -- or seven years -- of comparable sales growth," Lang said. "I'd like to congratulate Qdoba's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President Gary Beisler and his team on two major accomplishments: In July, Qdoba celebrated the opening of its 300th location, in Bloomington, Ind., and Nation's Restaurant News selected Gary as one of only six 2006 Golden Chain award winners." Restaurant operating margin increased to 18.7 percent of sales in the third quarter compared with 18.0-18.2 percent forecast and 17.2 percent a year ago, with the improvement versus 2005 due primarily to lower commodity costs -- principally beef, cheese and pork -- and profit improvement program initiatives, partially offset by higher utility costs. Beef costs were down approximately 11 percent versus last year. SG&A expense rate, including an approximate 20-basis-point increase from the expensing of stock options, was 10.5 percent of revenues in the third quarter compared with 10.6 percent in 2005, which did not include stock option expense. Ten company and franchised Jack in the Box restaurants opened in the third quarter, along with 3 new Quick Stuff(R) convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. , as forecast, compared with 10 new restaurants, including 4 Quick Stuff sites, opened in the same quarter a year ago. Qdoba opened 14 company and franchised restaurants during the third quarter, as forecast, compared with 15 locations opened in the same quarter a year ago. At July 9, the company's system total included 2,065 company and franchised Jack in the Box restaurants, including 50 with Quick Stuff convenience stores, and 298 company and franchised Qdoba restaurants. Gains on the sale of company-operated restaurants and other revenues totaled $7.6 million in the third quarter, as forecast, primarily from the sale of 17 Jack in the Box company restaurants to franchisees, compared with approximately $6.4 million a year ago, primarily from the sale of 20 such restaurants to franchisees. The increase in average gains this year related to the specific sales and cash flows of restaurants sold. The effective tax rate for the quarter was 34.1 percent, versus 37.0-37.5 percent forecast and 31.0 percent a year ago, with the decrease versus forecast due to tax-planning initiatives and tax credits. The tax rate in 2005 was lower due to the resolution of a prior year's tax matter and tax-planning initiatives. Capital expenditures, including capital lease obligations, were $42.2 million for the third quarter compared with $35-40 million forecast and $26.8 million in fiscal 2005, with the increase due primarily to investments associated with the company's restaurant re-imaging program. Third quarter initiatives Several new products were introduced during the third quarter as Jack in the Box continues to focus on menu innovation, upgraded service execution and enhanced restaurant facilities, which are the three major components of this holistic approach holistic approach A term used in alternative health for a philosophical approach to health care, in which the entire Pt is evaluated and treated. See Alternative medicine, Holistic medicine. to reinvent re·in·vent tr.v. re·in·vent·ed, re·in·vent·ing, re·in·vents 1. To make over completely: "She reinvented Indian cooking to fit a Western kitchen and a Western larder" the Jack in the Box brand: --Diner Melts, featuring either a single or double jumbo beef patty, grilled onions, two kinds of melted cheese, mayo-onion sauce and sweet mustard mustard, common name for the Cruciferae, a large family chiefly of herbs of north temperate regions. The easily distinguished flowers of the Cruciferae have four petals arranged diagonally ("cruciform") and alternating with the four sepals. . --Acapulco Chicken Salad, offering a blend of fresh romaine and spring mix lettuce lettuce, annual garden plant (Lactuca sativa and varieties) of the family Asteraceae (aster family), probably native to the East Indies or Asia Minor, possibly as a derivative of the widespread weed called wild lettuce (L. scariola). L. topped with savory savory, name for any plant of the genus Satureja, aromatic herbs and subshrubs of the family Labiatae (mint family). Commonly cultivated as border ornamentals or potherbs are two species of the Mediterranean region and surrounding areas: summer savory (S. grilled chicken, shredded shred n. 1. A long irregular strip that is cut or torn off. 2. A small amount; a particle: not a shred of evidence. tr.v. pepper jack cheese Pepper jack cheese is a derivative of Monterey Jack that combines spicy hot peppers for a zesty flavor. Spicy, delicate and buttery, pepper jack cheese is semi-soft and open textured with a slightly tart flavor. Pepper jack cheese can complement most meat, especially beef. , grape tomatoes A grape tomato is a class of tomatoes originally believed to be of southeast Asian origin, shaped similarly to the oblong plum tomatoes but having the small size and sweetness of cherry tomatoes. They produce small and typically oblong fruits. , cucumber cucumber, fruit of Cucumis sativus, a species of gourd whose many varieties are descended from a plant native to Asia and Africa. Cucumber is classified in the division Magnoliophyta, class Magnoliopsida, order Violales, family Curcurbitaceae. slices and red onions served with a side of blue corn Blue Corn (c. 1920 – May 3, 1999), also known as Crucita Calabaza, was a Native American potter from San Ildefonso Pueblo, New Mexico, United States. She became famous for reviving San Ildefonso polychrome wares and had a very long and productive career. tortilla strips, a flavorful flavorful - flavour cilantro-lime dressing and lime wedges. --Vanilla Malted Crunch Shake, made with real ice cream blended with malted crunch pieces. --Jack's Fresh Fruit Cup, made by Del Monte(R), offering a 7-ounce serving of cantaloupe cantaloupe: see gourd; melon. , honeydew, pineapple pineapple, common name for one member of and for the Bromeliaceae, a family of chiefly epiphytic herbs and small shrubs native to the American tropics and subtropics. and red grapes Grapes - A Modula-like system description language. E-mail: <peter@cadlab.cadlab.de>. ["GRAPES Language Description. Syntax, Semantics and Grammar of GRAPES-86", Siemens Nixdorf Inform, Berlin 1991, ISBN 3-8009-4112-0]. . --Bottled spring water by Dannon(R). In the third quarter, the company began re-imaging Jack in the Box restaurants in Seattle with a comprehensive program that includes a complete redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of the dining room and common areas. Interior finishes include ceramic tile floors; a mix of seating styles, such as booths, bars and high-top round tables; decorative pendant lighting A pendant light, sometimes called a drop or suspender, is a lone light fixture that hangs from the ceiling usually suspended by a cord, chain, or metal rod. Pendant lights are often used in multiples, hung in a straight line over kitchen countertops and dinette sets or sometimes in ; and graphics and wall collages. Other elements of the program include music, uniforms, menu boards and packaging, along with new paint schemes, landscaping and other exterior enhancements. The entire market is expected to be re-imaged by fiscal year end. Agreement to franchise Hawaii market Jack in the Box Inc. also announced today that it has signed an agreement to sell its company-operated Jack in the Box restaurants in Hawaii to a new franchise operator, who has extensive experience operating multiple quick-serve concepts in Hawaii. The sale of the 25 restaurants to Chris Scanlan, president of Scanlan Management, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , is scheduled for completion late in the fourth quarter. Following completion of the sale, which is expected to positively impact earnings by approximately 20-24 cents per diluted share, the company's Hawaii market will be entirely franchise operated. A development agreement for new restaurants will be part of this transaction, which is expected to be neutral to earnings in subsequent years. More than 27 percent of the Jack in the Box system is currently franchised. Including the projected sale of the restaurants in Hawaii, along with additional restaurants that the company expects to franchise in the fourth quarter, nearly 29 percent of the Jack in the Box system will be franchised at fiscal year end. Fiscal year 2006 guidance update Jack in the Box Inc. today increased its earnings guidance for fiscal 2006. The company now expects to earn approximately $2.72 -- $2.74 per diluted share for the full year, which is up from its previous forecast of approximately $2.60 -- $2.63 per diluted share and compares with $2.48 per diluted share earned in fiscal 2005. The new forecast for fiscal 2006 does not include the anticipated benefit of 20-24 cents per diluted share from the expected sale of company-operated restaurants in Hawaii, but it does include the effect of expensing stock options, as required by SFAS 123R. Fiscal 2005 results did not include the expensing of stock options. The following table compares guidance for fiscal year 2006 with 2005 comparable results, assuming the pro forma effect of expensing stock options of approximately 15 cents per diluted share (excluding the effect of accelerated vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of retiree's stock options) and a charge related to canceling the test of JBX Grill JBX Grill was a new line of fast casual restaurants introduced in 2004 by Jack in the Box Inc. JBX Grill features high-quality, cafe-style food, avoiding most of the cheaper fast-food items typically served at Jack in the Box. (R) in the fourth quarter of fiscal 2005:
Forecast
Fiscal 2006 Fiscal 2005
------------- -------------
Diluted EPS $ 2.72 - 2.74 $ 2.48
Comparable adjustments:
Pro forma effect of stock options
as if expensed in FY 2005(1) - (0.15)
Charge related to JBX Grill in
Q4 of FY 2005(2) - 0.05
------------- -------------
Comparable diluted EPS $ 2.72 - 2.74 $ 2.38
============= =============
(1) Included in SG&A expense in the company's unaudited consolidated
statements of earnings commencing with the adoption of SFAS 123R
in the first quarter of fiscal 2006.
(2) Included in SG&A expense in the company's unaudited consolidated
statements of earnings.
Fiscal 2006 earnings guidance represents a 14-15 percent improvement over comparable 2005 results. The primary assumptions on which earnings guidance is based are as follows, in approximate amounts: --The opening of 40 company and franchised Jack in the Box restaurants, including 12 with new Quick Stuff convenience stores, as well as the opening of 75 company and franchised Qdoba restaurants. --A 4.0-4.5 percent increase in same-store sales at Jack in the Box company restaurants, and a 6.0-7.0 percent system same-store sales increase at Qdoba. --Restaurant operating margin at 17.4-17.6 percent of sales versus 16.9 percent in 2005, with the increase due primarily to lower commodity costs, profit improvement program initiatives, and fixed-cost leverage on same-store sales growth, partially offset by higher utility costs. --Gains on the sale of company-operated restaurants and other revenues of $34-35 million, primarily related to the sale of 57 Jack in the Box restaurants to franchisees, excluding the pending Hawaii transaction. --An effective tax rate of 36-36.5 percent. --Capital expenditures, including capital lease obligations, of $150 million compared with $124 million in 2005, with the increase due primarily to investments associated with the planned re-imaging of approximately 150 Jack in the Box restaurants in 2006. Fourth quarter 2006 guidance The company also today provided earnings guidance for the fourth quarter ending Oct. 1, 2006, of approximately 64-66 cents per diluted share versus 59 cents per diluted share in the prior year. The quarter's guidance does not include the anticipated benefit of 20-24 cents per diluted share from the expected sale of company-operated restaurants in Hawaii, but it does include the effect of expensing stock options, as required by SFAS 123R. Fourth-quarter fiscal 2005 results did not include the pro forma effect of expensing stock options of approximately 4 cents per diluted share. The following table compares 2006 guidance with 2005 comparable results after adjusting for the pro forma effect of stock option expense in fiscal 2005 and a charge related to canceling the test of JBX Grill in the fourth quarter of fiscal 2005:
Forecast
Fourth Quarter Fourth Quarter
Fiscal 2006 Fiscal 2005
--------------- ---------------
Diluted EPS $ 0.64 - 0.66 $ 0.59
Comparable adjustments:
Pro forma effect of stock
options as if expensed in
FY 2005(1) - (0.04)
Charge related to JBX Grill
in Q4 of FY 2005(2) - 0.05
--------------- ---------------
Comparable diluted EPS $ 0.64 - 0.66 $ 0.60
=============== ===============
(1) Included in SG&A expense in the company's unaudited consolidated
statements of earnings commencing with the adoption of SFAS 123R
in the first quarter of fiscal 2006.
(2) Included in SG&A expense in the company's unaudited consolidated
statements of earnings.
Estimated fourth-quarter fiscal 2006 earnings guidance represents a 7-10 percent improvement over comparable prior-year results after adjusting for the noncomparable items noted in the table above. The primary assumptions on which fourth-quarter earnings guidance is based are as follows, in approximate amounts: --A 3.5-4.5 percent increase in same-store sales at Jack in the Box company restaurants. --Restaurant operating margin at 17.8-18.0 percent of sales versus 17.3 percent in 2005, due primarily to lower food costs, fixed-cost leverage on increased sales, and profit improvement program initiatives. --Gains on the sale of company-operated restaurants and other revenues of $8.0-9.0 million, primarily related to the sale of 10 Jack in the Box restaurants to franchisees, compared with $7.5 million in 2005, primarily related to the sale of 12 company restaurants to franchisees. The fourth-quarter forecast excludes the pending Hawaii transaction. --An effective tax rate of 36-36.5 percent compared with 32.2 percent in 2005. --Capital expenditures of $60 million compared with $47 million in 2005, with the increase due in part to investments associated with the planned re-imaging of Jack in the Box restaurants in 2006. Fourth quarter initiatives --In July, Jack in the Box enhanced its dessert menu by adding a Chocolate Chip Chocolate chips are small chunks of chocolate. They are often sold in a round, flat-bottomed teardrop shape (similar to a Hershey's Kiss). They are available in numerous sizes, from large to miniature, but are usually around 1 cm in diameter. Cookie cookie File or part of a file put on a Web user's hard disk by a Web site. Cookies are used to store registration data, to make it possible to customize information for visitors to a Web site, to target Web advertising, and to keep track of the products a user wishes to Cheesecake made with Nestle Toll House(R) semisweet sem·i·sweet adj. Having a small amount of sweetening: semisweet chocolate. Adj. 1. semisweet - having a taste that is a mixture of bitterness and sweetness bittersweet chocolate morsels and by re-imaging its line of real ice cream shakes. Jack's shakes now feature creamy cream·y adj. cream·i·er, cream·i·est Rich in or resembling cream. cream  i·ly adv. whipped topping Whipped topping is a non dairy product made to resemble the taste, texture, and look of whipped cream. Whipped Topping normally contains some mixture of partially hydrogenated oil, sweeteners, and other ingredients. and a
cherry and are served in a clear plastic cup with a dome-shaped lid.--Also in July, Jack in the Box launched a value-friendly combo meal called The Big Deal, featuring a chicken sandwich Noun 1. chicken sandwich - a sandwich made with a filling of sliced chicken sandwich - two (or more) slices of bread with a filling between them , two beef tacos and a 20-ounce beverage for just $2.59. --Additionally, Jack in the Box enhanced its beverage offerings by introducing a new brand of orange juice, from Minute Maid Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid was the first company to market orange juice concentrate, allowing it to be distributed nationwide and served (R). --Next week, Jack in the Box will add buttermilk biscuits Noun 1. buttermilk biscuit - very tender biscuit partially leavened with buttermilk and soda soda biscuit biscuit - small round bread leavened with baking-powder or soda to its breakfast menu and introduce two new products: Bacon, Egg & Cheese Biscuit biscuit, n the firing bakes, or stages (referred to as low, medium, and high), during the fusing of dental porcelain preceding the final, or glaze, bake. biscuit in dogs, a grayish-yellow coat color. and Sausage, Egg & Cheese Biscuit. --Also next week, Jack in the Box will introduce an Outlaw(TM) Burger and Outlaw(TM) Spicy Chicken Sandwich, featuring either a jumbo beef patty or spicy crispy crisp·y adj. crisp·i·er, crisp·i·est 1. Firm but easily broken or crumbled; crisp. 2. Having small curls, waves, or ripples. chicken fillet fillet /fil·let/ (fil´et) 1. a loop, as of cord or tape, for making traction on the fetus. 2. in the nervous system, a long band of nerve fibers. fil·let n. 1. with two fried onion Fried onions are a popular snack food or accompaniment to various recipes, made from frying onions. They are usually associated with fast food. It is an integral part of Green bean casserole. Examples include:
The sauce was test marketed by Rich Davis, who was a child psychologist, in 1977 in Kansas City, Missouri as K.C. Soul Style Barbecue Sauce. (R) Original Barbecue Sauce and served on a toasted sesame bun BUN blood urea nitrogen; see urea nitrogen. BUN abbr. blood urea nitrogen Blood urea nitrogen (BUN) . About Jack in the Box Inc. Jack in the Box Inc. (NYSE:JBX), based in San Diego, is a restaurant company that operates and franchises Jack in the Box(R) restaurants, one of the nation's largest hamburger chains, with more than 2,000 restaurants in 17 states. The company also operates a proprietary chain of convenience stores called Quick Stuff(R), with approximately 50 locations, each built adjacent to a full-size Jack in the Box restaurant and including a major-brand fuel station. Additionally, through a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , the company operates and franchises Qdoba Mexican Grill(R), an emerging leader in fast-casual dining, with more than 300 restaurants in 40 states. For more information, visit www.jackinthebox.com. Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to substantial risks and uncertainties. These statements, which include the company's guidance and related assumptions, may be identified by the use of words such as "assumption," "believes," "estimates," "expects," "guidance," "plans," "will," and other words of similar meaning. The following are some of the factors that could cause the company's actual results to differ materially from those expressed in the forward-looking statements: delays in closings or failure to close sales of franchises; delays in the opening of new or remodeled restaurants; the uncertainty whether test results for products or facility enhancements are predictive of successful results on a larger scale; loss of sales due to restaurant closures related to blackouts or adverse weather conditions or other events in the regions in which the company's restaurants are located; changes in laws, regulations and accounting rules and interpretations; and adverse economic and other local, national and international conditions or events that affect consumer confidence and spending. Costs may exceed projections, including the cost of food, labor, pending or future legal claims, new restaurant construction and remodels, and utilities. Increases in the cost of fuel may increase the cost of food and packaging as well as impact consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns. Additional factors that may adversely affect results include the effect of any widespread negative publicity regarding the company, the foodservice industry in general or particular foods. Further information about factors that could affect the company's financial and other results is included in the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its periodic reports on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. The information in this press release is as of Aug. 8, 2006. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise. Use of non-GAAP financial information In this press release, the company provides (i) earnings per diluted share (EPS) determined in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and (ii) EPS adjusted for certain items as follows: --For the third quarter of fiscal 2005, comparable diluted EPS as shown in a table earlier in this press release includes the pro forma effect of expensing stock options in accordance with SFAS 123. --For fiscal year 2005, comparable diluted EPS as shown in a table earlier in this press release includes the pro forma effect of expensing stock options in accordance with SFAS 123 and excludes a charge related to canceling the test of JBX Grill in the fourth quarter of fiscal 2005. --For the fourth quarter of fiscal 2005, comparable diluted EPS as shown in a table earlier in this press release includes the pro forma effect of expensing stock options in accordance with SFAS 123 and excludes a charge related to canceling the test of JBX Grill in the fourth quarter of fiscal 2005. These non-GAAP financial measures are used by the company's management to evaluate financial operating performance. Use of these non-GAAP measures also facilitates comparisons between current and prior period financial results, estimates of future results, and to the results of the company's competitors. These financial measures are also comparable to forecasts made by securities analysts and others, which generally exclude special items as they are difficult to predict in advance. Non-GAAP measures are not intended to be a substitute for net earnings determined in accordance with GAAP.
JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Twelve Weeks Ended Twenty-Eight Weeks
Ended
------------------ ----------------------
July 9, July 10, July 9, July 10,
2006 2005 2006 2005
-------- -------- ---------- ----------
Revenues:
Restaurant sales $488,054 $483,392 $1,615,756 $1,573,500
Distribution and other
sales 130,076 81,318 378,159 248,244
Franchise rents and
royalties 23,259 18,236 75,402 59,503
Gains on sale of company-
operated restaurants and
other 7,599 6,357 25,624 21,764
-------- -------- ---------- ----------
648,988 589,303 2,094,941 1,903,011
-------- -------- ---------- ----------
Costs of revenues:
Restaurant costs of sales 149,399 156,136 504,913 499,489
Restaurant operating costs 247,598 244,155 829,164 809,132
Costs of distribution and
other sales 128,218 79,869 373,510 244,937
Franchised restaurant
costs 10,679 8,711 33,530 27,142
-------- -------- ---------- ----------
535,894 488,871 1,741,117 1,580,700
-------- -------- ---------- ----------
Selling, general and
administrative costs 68,193 62,273 226,874 205,871
-------- -------- ---------- ----------
Earnings from operations 44,901 38,159 126,950 116,440
Interest expense, net 2,685 3,560 10,115 10,011
-------- -------- ---------- ----------
Earnings before income
taxes 42,216 34,599 116,835 106,429
Income taxes 14,375 10,713 41,984 36,436
-------- -------- ---------- ----------
Net earnings $ 27,841 $ 23,886 $ 74,851 $ 69,993
======== ======== ========== ==========
Net earnings per share:
Basic $ .79 $ .68 $ 2.15 $ 1.96
Diluted $ .77 $ .66 $ 2.09 $ 1.89
Weighted-average shares
outstanding:
Basic 35,073 35,080 34,858 35,733
Diluted 36,018 36,403 35,850 37,067
JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 9, July 10,
2006 2005
----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 191,523 $ 98,636
Accounts and notes receivable, net 28,608 26,030
Inventories 40,964 39,503
Other current assets 98,595 102,974
---------- ----------
Total current assets 359,690 267,143
---------- ----------
Property and equipment, net 883,424 855,349
Other assets, net 178,920 203,119
---------- ----------
$1,422,034 $1,325,611
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 7,916 $ 7,629
Other current liabilities 278,863 256,039
---------- ----------
Total current liabilities 286,779 263,668
---------- ----------
Long-term debt, net of current maturities 284,105 291,973
Other long-term liabilities 214,428 201,021
Stockholders' equity 636,722 568,949
---------- ----------
$1,422,034 $1,325,611
========== ==========
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