EXHIBIT 99
FOR IMMEDIATE RELEASE
Contacts: Tim Smith/Louis Adams, Media Relations Chuck Sonsteby, Investor Relations
(972) 770-4959 /(972) 770-4967 (972) 770-9406
BRINKER INTERNATIONAL REPORTS $0.47 EARNINGS PER SHARE
DALLAS (April 23, 2003) - Dallas-based Brinker International, Inc. (NYSE - EAT), a leader in the casual dining industry, reported its earnings per share increased 38.2 percent for the company's third quarter ended March 26, 2003. Net income for the third quarter of fiscal 2003 was $46.2 million or $0.47 diluted earnings per share as compared to $34.2 million or $0.34 per share, reported in the same quarter of fiscal 2002. Exclusive of the California labor settlement recorded in the third quarter of fiscal 2002, earnings per share increased 14.6 percent.
Brinker reported third quarter revenues for the 13-week period of $840.8 million, an increase of 12.7 percent compared with the $745.8 million reported for the same period in fiscal 2002. These revenue gains were primarily driven by a combination of 11.6 percent capacity gains and overall comparable same store sales for all Brinker concepts, which were up 0.9 percent for the quarter. Quarterly comparable same store sales were up 2.3 percent at Chili's and up 0.3 percent at Maggiano's. Comparable same store sales were down 1.1 percent at Macaroni Grill and down 1.8 percent at On The Border.
"Our long term strategic game plan continues to deliver solid results." said Ron McDougall, Brinker's Chairman and CEO. " While this quarter contained some unusual challenges, we responded by executing our plans and driving our business forward. Our teams have done an exceptional job, remaining focused and adapting to a changing environment."
Brinker estimates fourth quarter earnings per share for fiscal 2003 to be $0.55 to $0.56 based on expectations of comparable same store sales growth in the 1 to 2 percent range.
Brinker continues to be active in its share repurchase program, acquiring approximately 435,000 shares during the third quarter. Since the inception of its share repurchase program, the company has purchased approximately $380.9 million of its common stock.
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 at the following Web site address:http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=EAT&script=1010&item_id=729763 at 10 a.m. CDT today (April 23). 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 (www.brinker.com) until the end of the day April 25, 2003.
At the end of the third quarter of fiscal 2003, Brinker International either owned, operated, franchised, or was involved in the ownership of 1,370 restaurants under the names Chili's Grill & Bar (880 units), Romano's Macaroni Grill (196 units), On The Border Mexican Grill & Cantina (134 units), Maggiano's Little Italy (24 units), Cozymel's Coastal Grill (15 units), Corner Bakery Cafe (84 units), Big Bowl Asian Kitchen (17 units), and Rockfish Seafood Grill (20 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 impact of competition, the seasonality of the company's business, adverse weather conditions, future commodity prices, fuel and utility costs, governmental regulations, and inflation.
| BRINKER INTERNATIONAL, INC. | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (In thousands, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | ||||||||||||
| March 26, 2003 | March 27, 2002 | March 26, 2003 | March 27, 2002 | ||||||||||
| Revenues | $ | 840,776 | $ | 745,786 | $ | 2,409,178 | $ | 2,104,192 | |||||
| Operating Costs and Expenses: | |||||||||||||
| Cost of Sales | 231,054 | 207,871 | 659,151 | 584,529 | |||||||||
| Restaurant Expenses | 461,360 | 417,407 | 1,332,309 | 1,161,487 | |||||||||
| Depreciation and Amortization | 40,380 | 34,273 | 116,238 | 92,610 | |||||||||
| General and Administrative | 34,810 | 29,586 | 99,131 | 87,833 | |||||||||
| Total Operating Costs and Expenses | 767,604 | 689,137 | 2,206,829 | 1,926,459 | |||||||||
| Operating Income | 73,172 | 56,649 | 202,349 | 177,733 | |||||||||
| Interest Expense | 3,730 | 4,034 | 10,151 | 10,655 | |||||||||
| Other, Net | 237 | 998 | (593) | 1,806 | |||||||||
| Income Before Provision for Income Taxes | 69,205 | 51,617 | 192,791 | 165,272 | |||||||||
| Provision for Income Taxes | 23,045 | 17,447 | 64,402 | 56,832 | |||||||||
| Net Income | $ | 46,160 | $ | 34,170 | $ | 128,389 | $ | 108,440 | |||||
| Basic Net Income per Share | $ | 0.48 | $ | 0.35 | $ | 1.32 | $ | 1.11 | |||||
| Diluted Net Income per Share | $ | 0.47 | $ | 0.34 | $ | 1.30 | $ | 1.08 | |||||
| Basic Weighted Average | |||||||||||||
| Shares Outstanding | 97,025 | 97,694 | 96,996 | 97,924 | |||||||||
| Diluted Weighted Average | |||||||||||||
| Shares Outstanding | 98,901 | 100,652 | 98,988 | 100,588 | |||||||||
| BRINKER INTERNATIONAL, INC. | |||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (In thousands) | |||||||||||||
| (Unaudited) | |||||||||||||
| March 26, 2003 | June 26, 2002 | ||||||||||||
| ASSETS | |||||||||||||
| Total current assets | $ | 136,176 | $ | 141,954 | |||||||||
| Net property and equipment | 1,473,644 | 1,355,417 | |||||||||||
| Total other assets | 280,032 | 285,965 | |||||||||||
| Total assets | $ | 1,889,852 | $ | 1,783,336 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Total current liabilities | $ | 331,840 | $ | 302,220 | |||||||||
| Long-term debt, less current installments | 395,348 | 426,679 | |||||||||||
| Other liabilities | 84,085 | 77,341 | |||||||||||
| Total shareholders' equity | 1,078,579 | 977,096 | |||||||||||
| Total liabilities and shareholders' equity | $ | 1,889,852 | $ | 1,783,336 | |||||||||
| FOR ADDITIONAL INFORMATION, CONTACT: | |||||||||||||
| CHUCK SONSTEBY | |||||||||||||
| INVESTOR RELATIONS | |||||||||||||
| (972) 770-9406 | |||||||||||||
| 6820 LBJ FREEWAY | |||||||||||||
| DALLAS, TEXAS 75240 | |||||||||||||
BRINKER INTERNATIONAL, INC. | ||||||
UNITS SUMMARY | ||||||
| Total Units Dec. 25, 2002 | Third Quarter Fiscal2003 Net Activity | Total Units Mar. 26, 2003 | Projected Openings Fiscal 2003 | |||
| Company-Owned Units: | ||||||
| Chili's | 664 | 13 | 677 | 63-65 | ||
| Macaroni Grill | 188 | 1 | 189 | 20-22 | ||
| On The Border | 115 | - | 115 | 3-5 | ||
| Maggiano's | 23 | 1 | 24 | 4-5 | ||
| Cozymel's | 15 | - | 15 | 1 | ||
| Corner Bakery | 78 | 3 | 81 | 10-12 | ||
| Big Bowl | 16 | 1 | 17 | 7-8 | ||
| 1,099 | 19 | 1,118 | 108-118 | |||
| JV/Franchise Units: | ||||||
| Chili's | 200 | 3 | 203 | 19-22 | ||
| Macaroni Grill | 6 | 1 | 7 | 2 | ||
| On The Border | 19 | - | 19 | 1 | ||
| Corner Bakery | 3 | - | 3 | 1 | ||
| Rockfish | 16 | 4 | 20 | 6-8 | ||
| 244 | 8 | 252 | 29-34 | |||
| Total Units: | ||||||
| Chili's | 864 | 16 | 880 | 82-87 | ||
| Macaroni Grill | 194 | 2 | 196 | 22-24 | ||
| On The Border | 134 | - | 134 | 4-6 | ||
| Maggiano's | 23 | 1 | 24 | 4-5 | ||
| Cozymel's | 15 | - | 15 | 1 | ||
| Corner Bakery | 81 | 3 | 84 | 11-13 | ||
| Big Bowl | 16 | 1 | 17 | 7-8 | ||
| Rockfish | 16 | 4 | 20 | 6-8 | ||
| 1,343 | 27 | 1,370 | 137-152 | |||
