EXHIBIT 99
FOR IMMEDIATE RELEASE
Contacts: Louis Adams, Media Relations Hil Davis, Investor Relations
(972) 770-4967 (972) 770-7228
BRINKER INTERNATIONAL REPORTS FIRST QUARTER EARNINGS
DALLAS (Oct. 21, 2003) - Casual dining leader Brinker International, Inc. (NYSE - EAT), reported earnings per share of $0.45 for the company's first quarter ended Sept. 24, 2003. Net income for the first quarter of fiscal 2004 was $44.6 million or $0.45 diluted earnings per share as compared to $45.0 million or $0.45 per share reported in the same quarter of fiscal 2003. First quarter fiscal 2003 net income would have been $42.8 million or $0.43 diluted earning per share exclusive of a $2.2 million insurance gain.
Brinker reported first quarter revenues for the 13-week period of $870.9 million, an increase of 12.5 percent compared with the $773.9 million reported for the same period in fiscal 2003. These revenue gains were primarily driven by a combination of 10.6 percent capacity gains as measured by average-weighted sales weeks and a 1.9 percent increase in comparable store sales for all Brinker concepts. By brand, quarterly comparable store sales increased 1.9 percent at Chili's, 0.9 percent at Macaroni Grill, 2.4 percent at Maggiano's and 3.2 percent at On The Border.
For the four-week period ending September 24, 2003, comparable store sales increased 1.5 percent. September comparable store sales for the four reported brands were as follows:
Sept FY '04 Sept FY '03
Chili's 2.0% 2.2%
Macaroni Grill &n
bsp; -1.2% 3.0%
Maggiano's 1.3% 9.5%
On The Border 4.1% -1.1%
Comparable store sales included an overall price increase of 1.1 percent for Brinker International.
By brand, price increases were 1.1 percent at Chili's, 1.3 percent at Macaroni Grill, 0.8 percent at
On The Border and there was a price decrease of 0.2 percent at Maggiano's. Product mix-shift
declined by 0.2 percent for Brinker International. By brand, product mix-shift was flat for Chili's and
Macaroni Grill and declined 0.9 percent at Maggiano's and 1.3 percent at On The Border.
Brinker's initial estimate for second quarter fiscal 2004 earnings per share is $0.44 to $0.45. Second
quarter estimates are based on expectations of capacity growth of approximately 9 to 10 percent as
measured by average-weighted sales weeks and comparable store sales growth in the 2 to 4 percent
range. This comparable store sales range includes a 1 percent benefit due to a favorable holiday shift with
Christmas Day moving from the December period this fiscal year to the January period.
The company continues to be active in its share repurchase program, acquiring approximately 1,615,000 shares during the first quarter. At the end of the quarter, approximately $66 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 10 a.m. CDT today (Oct. 21). 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 Oct. 24, 2003.
At the end of the first quarter of fiscal 2004, Brinker International either owned, operated, franchised, or was involved in the ownership of 1,434 restaurants under the names Chili's Grill & Bar (921 units), Romano's Macaroni Grill (207 units), Maggiano's Little Italy (28 units), On The Border Mexican Grill & Cantina (132 units), Cozymel's Coastal Grill (16 units), Corner Bakery Cafe (89 units), Big Bowl Asian Kitchen (19 units), and Rockfish Seafood Grill (22 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 and availability, governmental regulations and inflation.
# # #
BRINKER INTERNATIONAL, INC. |
CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except per share amounts) |
(Unaudited) |
|
Thirteen Week Periods Ended |
| September 24,
2003 | September 25,
2002 | |
| | | |
Revenues | $ 870,898 | $ 773,892 | |
| | | |
Operating Costs and Expenses: | | | |
Cost of sales | 239,902 | 210,426 | |
Restaurant expenses | 486,358 | 423,606 | |
Depreciation and amortization | 42,409 | 37,157 | |
General and administrative | 33,296 | 32,545 | |
Total operating costs and expenses | 801,965 | 703,734 | |
| | | |
Operating income | 68,933 | 70,158 | |
| | | |
Interest expense | 3,318 | 3,971 | |
Other, net | (257) | (1,590) | |
| | | |
Income before provision for income taxes | 65,872 | 67,777 | |
Provision for income taxes | 21,277 | 22,773 | |
| | | |
Net income | $ 44,595 | $ 45,004 | |
| | | |
| | | |
Basic net income per share | $ 0.46 | $ 0.46 | |
| | | |
| | | |
Diluted net income per share | $ 0.45 | $ 0.45 | |
| | | |
Basic weighted average | | | |
shares outstanding | 97,404 | 97,177 | |
| | | |
Diluted weighted average | | | |
shares outstanding | 99,367 | 99,235 | |
| | | |
BRINKER INTERNATIONAL, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) |
| | | |
| September 24,
2003 | June 25,
2003 | |
ASSETS | | | |
Total current assets | $ 148,233 | $ 166,467 | |
Net property and equipment | 1,523,505 | 1,499,572 | |
Total other assets | 271,812 | 277,251 | |
Total assets | $ 1,943,550 | $ 1,943,290 | |
| | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
Total current liabilities | $ 308,885 | $ 310,211 | |
Long-term debt, less current installments | 354,745 | 353,785 | |
Other liabilities | 140,588 | 139,044 | |
Total shareholders' equity | 1,139,332 | 1,140,250 | |
Total liabilities and shareholders' equity | $ 1,943,550 | $ 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
|
First Quarter Fiscal 2004
|
Total Units
|
Projected Openings
|
| June 25, 2003 | Net Activity | Sep. 24, 2003 | Fiscal 2004 |
| | | | |
Company-Owned Units: | | | | |
Chili's | 693 | 18 | 711 | 70-75 |
Macaroni Grill | 194 | 4 | 198 | 21-23 |
On The Border | 114 | - | 114 | 4-5 |
Maggiano's | 25 | 3 | 28 | 3-4 |
Cozymel's | 16 | - | 16 | - |
Corner Bakery | 85 | 1 | 86 | 5-8 |
Big Bowl | 18 | 1 | 19 | 2-3 |
| 1,145 | 27 | 1,172 | 105-118 |
| | | | |
JV/Franchise Units: | | | | |
Chili's | 207 | 3 | 210 | 20-24 |
Macaroni Grill | 8 | 1 | 9 | 2-4 |
On The Border | 19 | (1) | 18 | 0-1 |
Corner Bakery | 3 | - | 3 | - |
Rockfish | 20 | 2 | 22 | 4-6 |
| 257 | 5 | 262 | 26-35 |
| | | | |
Total Units: | | | | |
Chili's | 900 | 21 | 921 | 90-99 |
Macaroni Grill | 202 | 5 | 207 | 23-27 |
On The Border | 133 | (1) | 132 | 4-6 |
Maggiano's | 25 | 3 | 28 | 3-4 |
Cozymel's | 16 | - | 16 | - |
Corner Bakery | 88 | 1 | 89 | 5-8 |
Big Bowl | 18 | 1 | 19 | 2-3 |
Rockfish | 20 | 2 | 22 | 4-6 |
| 1,402 | 32 | 1,434 | 131-153 |
| | | | |
