-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QTg5h2IEC/ZYpApCnuMLo6IHFMJYLzcDQyyS+Bh6YlRcbQKK6ExeEzd6ywstsLrS ATeGkNfgnLg8JbMvSKILIw== 0001157523-03-003681.txt : 20030806 0001157523-03-003681.hdr.sgml : 20030806 20030806080039 ACCESSION NUMBER: 0001157523-03-003681 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030806 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JACK IN THE BOX INC /NEW/ CENTRAL INDEX KEY: 0000807882 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 952698708 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09390 FILM NUMBER: 03825022 BUSINESS ADDRESS: STREET 1: 9330 BALBOA AVE CITY: SAN DIEGO STATE: CA ZIP: 92123-1516 BUSINESS PHONE: 6195712121 MAIL ADDRESS: STREET 1: 9330 BALBOA AVENUE CITY: SAN DIEGO STATE: CA ZIP: 92123-1516 FORMER COMPANY: FORMER CONFORMED NAME: FOODMAKER INC /DE/ DATE OF NAME CHANGE: 19920703 8-K 1 a4448922.txt JACK IN THE BOX 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): August 6, 2003 JACK IN THE BOX INC. ---------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 1-9390 95-2698708 - ----------------------------- ---------- -------------------- (State of Incorporation) (Commission File (I.R.S. Employer Number) Identification Number) 9330 BALBOA AVENUE, SAN DIEGO, CA 92123 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (858) 571-2121 -------------- 1 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- (c) Exhibits. --------- Exhibit Description Number ----------- - ------ 99.1 Press release of Jack in the Box Inc. issued August 6, 2003 ITEM 9. REGULATION FD DISCLOSURE (Item 12, Results of Operations and Financial Condition) The information contained in this item 9 is being furnished under Item 12 "Results of Operations and Financial Condition" on Form 8-K in accordance with SEC Release No. 33-8216. Attached as Exhibit 99.1 and incorporated herein by reference, is a copy of the press release of Jack in the Box Inc. dated August 6, 2003, announcing Jack in the Box Inc. financial results for the quarter ended July 6, 2003. Jack in the Box Inc. will conduct a conference call on August 6, 2003 at 9:00 a.m. PT to review third quarter results. Investors can hear this conference call live by visiting the Jack in the Box home page at www.jackinthebox.com. Access the Jack in the Box home page at least 15 minutes prior to the call in order to download and install any necessary audio software. Investors can hear replays of the conference call by visiting www.jackinthebox.com and clicking on the conference call link. 2 SIGNATURES ---------- 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. JACK IN THE BOX INC. By: JOHN F. HOFFNER ----------------------------- John F. Hoffner Executive Vice President Chief Financial Officer (Principal Financial Officer) (Duly Authorized Signatory) Date: August 6, 2003 3 EX-99 3 a4448922ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Jack in the Box Inc. Earns $19.8 Million in Third Quarter; Updates Earnings Guidance for Fiscal 2003 SAN DIEGO--(BUSINESS WIRE)--Aug. 6, 2003--Jack in the Box Inc. (NYSE: JBX), operator and franchiser of Jack in the Box(R) and Qdoba Mexican Grill(R) restaurants, today announced net earnings of $19.8 million for the third quarter ended July 6, compared with $24.2 million in the third quarter of fiscal 2002. Earnings per diluted share were 54 cents compared with 60 cents last year. Jack in the Box exceeded its earnings-per-share estimate by 5 cents, primarily due to the favorable resolution of a tax matter. The company reported that its fiscal 2003 earnings-per-share estimate was now $2.03-$2.06, due to a lower effective tax rate resulting from this resolution. Year to date, Jack in the Box earned $57.3 million, or $1.54 per diluted share, compared with fiscal 2002 earnings of $69.1 million, or $1.72 per diluted share. Same-store sales decreased 0.2 percent compared with a 1.5 percent decrease in the third quarter last year. Benefiting from the introduction of a new line of premium salads called Jack's Ultimate Salads(TM), same-store sales improved from the 3.3 percent decline reported for the first half of the year, as well as third-quarter guidance of a 2.5 percent decrease. Qdoba continued to produce double-digit same-store sales increases during the quarter on top of double-digit increases last year, while the Quick Stuff(R) concept, combining a convenience store and fuel station with a Jack in the Box restaurant, continued to maintain year-to-date, double-digit same-store sales increases. Qdoba and Quick Stuff operations are not material components of Jack in the Box Inc. consolidated financial results or projections. "We are pleased to see the improvement in Jack in the Box same-store sales despite continued economic weakness," said Chairman and CEO Robert J. Nugent. "In addition, our other brands, Qdoba and Quick Stuff, continue to exceed same-store sales expectations." During the quarter, the company introduced three new premium salads: Asian Chicken, Southwest Chicken and Chicken Club. At the beginning of the fourth quarter, the company introduced its Turkey Jack(TM) sandwich, the quick-serve restaurant segment's first turkey burger. Consolidated company restaurant sales were $444 million during the third quarter compared with $428 million last year. Year to date, company restaurant sales increased to $1.42 billion compared with $1.4 billion a year ago. Other revenues during the quarter were $6.9 million compared with $4.7 million last year. Jack in the Box completed conversions of 14 restaurants to franchises in the quarter versus five last year. Year to date, other revenues were $25.4 million versus $12.9 million, primarily due to the sale of 28 restaurants to franchisees compared with 14 restaurants in fiscal 2002. Total revenues for the quarter were $489 million compared with $461 million in last year's third quarter, and were $1.57 billion year to date compared with $1.5 billion in 2002. Consolidated systemwide sales were $569 million in the third quarter versus $525 million last year, and year to date were $1.79 billion compared with $1.72 billion in 2002. During the third quarter, the company opened 21 new Jack in the Box restaurants, bringing to 1,534 the total number of company-operated restaurants. At the end of the third quarter, there were 1,920 Jack in the Box units systemwide compared with 1,840 a year ago. The company also operated 13 Quick Stuff convenience stores at quarter-end compared with 12 last year. Qdoba operated or franchised 98 units at quarter-end, compared with 79 restaurants at the same time last year. Gross profit rate in the third quarter was 17.7 percent of revenues compared with 20 percent last year, due primarily to higher workers' compensation insurance, utilities, and food and packaging costs, as well as costs related to a new point-of-sale (POS) system rollout. Year to date, gross profit rate was 18.1 percent of revenues versus 19.4 percent in 2002. Restaurant operating margin was 16.5 percent of sales compared with 19.4 percent in last year's third quarter for the same reasons. Year to date, restaurant operating margin was 16.6 percent of sales versus 18.6 percent last year. The company reported that legislative changes plus higher medical costs have significantly increased workers' compensation costs in California, Washington, and to a lesser extent, Texas. Additionally, the company's food and packaging costs were higher than last year due to the introduction of its new salad program, which was also impacted by higher produce costs. Restricted beef shipments from Canada reduced supply throughout the industry, resulting in increased beef costs in the quarter. Finally, the company incurred higher costs than last year related to equipment leases and maintenance contracts for its new POS system rollout, which is expected to be completed in January 2004. The new system replaces an older technology platform, and upgrades will enable all company restaurants to process debit/credit-card transactions. The company expects that cost increases associated with insurance, medical benefits, and the new POS system, as well as pension costs, will continue into the next fiscal year. SG&A expense rate in the quarter was 10.6 percent of revenues compared with 11.2 percent forecast and 11.1 percent last year, primarily due to the company's ongoing Profit Improvement Program initiatives, which have helped offset increases in pension costs. Year to date, SG&A expense rate was 11.1 percent of revenues, the same as 2002. Third-quarter earnings from operations, or operating income, were $34.8 million compared with $41 million in 2002, and included $2.1 million in additional other revenues, primarily related to gains and fees on restaurant sales to franchisees. Year to date, operating income was $109 million versus $124 million last year, and included $12.5 million in additional other revenues. Operating income was $34.8 million, and depreciation and amortization was $16.3 million during the quarter compared with $41 million and $16.3 million, respectively, last year. Year to date, operating income was $109.3 million, and depreciation and amortization was $53.5 million versus $124.2 million and $53.6 million, respectively, in 2002. Interest expense in the third quarter was $5.5 million versus $5.1 million last year, primarily due to borrowing costs associated with the Qdoba acquisition and fees related to the company's refinancing this past January. The company reported a favorable resolution of a tax matter, which improved the quarter's income tax rate to 32.5 percent compared with 38 percent forecast and 32.7 percent in last year's third quarter. Year to date, the company's income tax rate was 36.2 percent compared with 35.2 percent in fiscal 2002. The company now expects its 2003 income tax rate to be 36.2 percent versus 33.9 percent last year, and expects to return to its normal rate of 38 percent in fiscal 2004. Capital expenditures were $31.4 million versus $37.2 million in last year's third quarter and were lower than guidance. The company is now leasing a greater portion of its new stores instead of purchasing them due to favorable financing terms. Year to date, capital expenditures were $81 million compared with $91 million in 2002. Regarding the company's balance sheet, the quarter-end current ratio was 0.6 versus 0.5 last year, debt-to-equity ratio was 0.6 versus 0.5, and total debt was $303 million compared with $251 million, primarily related to the $45 million acquisition of Qdoba in January of this year. Accounts receivables were $9 million higher than 2002, due to short-term bridge loans made to qualified Jack in the Box franchisees on restaurant purchases. Other current assets were $27 million lower than last year, primarily due to a reduction in sinking funds related to the retirement of 10.3 percent financing lease obligations, and to a decrease in assets held for sale/leaseback. Other assets were up $52 million from 2002, primarily related to the establishment of intangible assets for the Qdoba acquisition, approximately $9 million of which is amortizable. Current liabilities were $66 million lower than last year, primarily related to reclassification of the company's senior facility to long-term debt following a refinancing transaction in January, and to the retirement of financing lease obligations. Long-term debt was up $122 million from 2002, primarily related to the senior credit facility reclassification and to the Qdoba acquisition financing. Other long-term liabilities were $27 million higher than last year, primarily due to increases in deferred taxes, straight-line rent and pension obligations. Stockholders' equity was slightly lower than last year, as increases to retained earnings were essentially offset by reductions for share repurchases and a pension liability adjustment. Fourth-Quarter Guidance The company currently expects to earn approximately 49 cents per share in the fourth quarter compared with 35 cents per share reported in 2002, or 57 cents per share when adjusted for the following factors: normalizing the annual income tax rate to 36.2 percent; eliminating the amortization of indefinite life intangible assets of approximately $1 million (related to this year's adoption of FAS 142); and excluding one-time pre-tax charges of $15.7 million in the fourth quarter of 2002. The primary assumptions supporting this earnings-per-share estimate are as follows, in approximate amounts: -- 27 new Jack in the Box restaurants open, including six Quick Stuff convenience stores co-branded with Jack in the Box restaurants and fuel stations. Two Quick Stuff sites originally planned for 2003 will open in the first quarter of 2004. They will be replaced by two additional Jack in the Box sites, bringing total company restaurant openings for the year to 90 as planned. -- A 1 percent increase in Jack in the Box same-store sales compared with a 2.7 percent decrease last year due to new product and promotional introductions that are expected to offset continued economic weakness and competitive discounting activity. For the full year, the company estimates that same-store sales will decrease approximately 1.5 to 1.8 percent compared with last year's 0.8 percent decrease. -- $27 million in distribution and other sales versus $20.3 million last year, due to higher fuel revenues from co-branded sites, and additional distribution to Qdoba restaurants. Margins are expected to be slightly lower, primarily due to a higher percentage of fuel sales at low margins and higher distribution costs associated with more frequent restaurant deliveries. -- Eight Jack in the Box conversions to franchises, the same as last year, producing approximately $5.5 million in other revenues compared with $7.2 million in 2002. For the full year, the company expects to convert 36 restaurants to franchises, producing approximately $31 million in other revenues, compared with approximately $20 million from the conversion of 22 restaurants last year. These conversions represent only 2 percent of all company-operated restaurants. -- $493 million in total revenues versus $463 million in 2002. -- Gross profit rate of 17.5 percent of revenues compared with 19.6 percent last year, due to higher costs for food and packaging, workers' compensation and medical insurance, utilities and the new POS system. -- SG&A expense rate of 10.7 percent of revenues compared with 10.9 percent last year, excluding one-time pre-tax charges of $15.7 million, incurred in the fourth quarter of 2002, for the settlement of a class-action lawsuit and the closure of eight underperforming restaurants. -- Income tax rate of 36.2 percent versus 26.6 percent last year, due to one-time tax benefits in both years. The company expects to return to its normal income tax rate of 38 percent in fiscal 2004. -- Weighted average shares outstanding of 36.7 million versus 39.7 million in 2002. -- Capital expenditures of approximately $55 million compared with $51.8 million last year, bringing total capital expenditures in 2003 to $135 million versus $143 million in fiscal 2002. -- Operating income plus depreciation and amortization of approximately $50 million versus $56.8 million a year ago, when adjusting 2002 for the items mentioned above. About Jack in the Box Inc. Jack in the Box Inc. (NYSE: JBX) operates and franchises Jack in the Box and Qdoba Mexican Grill restaurants in 30 states combined. Jack in the Box is the nation's first major drive-thru hamburger chain, with more than 1,900 restaurants. Qdoba Mexican Grill is an emerging leader in fast-casual dining, with nearly 100 restaurants. With headquarters in San Diego, Jack in the Box Inc. has more than 44,000 employees. For more information, visit www.jackinthebox.com and www.qdoba.com. Safe Harbor This news release contains forward-looking statements about, among other items, the company's projected earnings, sales, including same store sales trends, revenues, growth, completion of a POS system rollout, costs and expenses, including insurance, utilities and pension costs, sales of franchises, franchise conversions, profits, tax rates, shares outstanding, new products, and marketing plans. These forward-looking statements are subject to risks and uncertainties. The statements reflect management's current expectations regarding future events. 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: the effect of competition, including pricing, marketing initiatives and new products introduced by competitors; the availability and cost of food ingredients, labor, utilities, workers' compensation and other insurance, and real estate; increases in expenses related to technology and equipment upgrades; the success of the company's new products and marketing initiatives; delays in the opening of restaurants and of the innovation center; the availability of financing on terms satisfactory to franchisees and potential franchisees; timely payment of franchisee obligations due the company; the attractiveness of the company's franchise offerings; the continuation of franchise conversions; adverse weather conditions and business, economic and other local or national conditions or events which affect consumer confidence and spending patterns; the company's ability to successfully execute its strategic plans; the volume of advertising the company is able to purchase compared to its competitors; consumer health concerns about fast food in general or the company's products specifically; the effect of negative or positive publicity regarding the company or the restaurant industry in general; changes in government regulations; changes in accounting standards, policies and practices; changes in effective tax rates; potential variances between estimated and actual liabilities; effects of legal claims; the possibility of unforeseen events affecting the industry in general and other risk factors listed from time to time in the company's reports filed with the Securities and Exchange Commission. Statements about the company's past performance are not necessarily indicative of its future results. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as the result of new information, future events or otherwise. JACK IN THE BOX INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) Twelve Weeks Ended Forty Weeks Ended ------------------ ---------------------- July 6, July 7, July 6, July 7, 2003 2002 2003 2002 ------------------ ---------------------- Revenues: Restaurant sales $443,990 $428,150 $1,421,695 $1,398,816 Distribution and other sales 25,927 19,051 78,351 57,153 Franchise rents and royalties 11,803 9,271 39,799 34,157 Other 6,854 4,747 25,411 12,903 ------------------ ---------------------- 488,574 461,219 1,565,256 1,503,029 ------------------ ---------------------- Costs of revenues: Restaurant costs of sales 140,129 128,395 436,950 426,093 Restaurant operating costs 230,557 216,756 748,804 713,144 Costs of distribution and other sales 25,277 18,491 76,556 55,630 Franchised restaurant costs 6,157 5,215 19,402 16,979 ------------------ ---------------------- 402,120 368,857 1,281,712 1,211,846 ------------------ ---------------------- Gross profit 86,454 92,362 283,544 291,183 Selling, general and administrative 51,629 51,341 174,210 167,020 ------------------ ---------------------- Earnings from operations 34,825 41,021 109,334 124,163 Interest expense 5,538 5,086 19,598 17,582 ------------------ ---------------------- Earnings before income taxes 29,287 35,935 89,736 106,581 Income taxes 9,515 11,733 32,485 37,519 ------------------ ---------------------- Net earnings $19,772 $24,202 $57,251 $69,062 ================== ====================== Net earnings per share: Basic $.55 $.61 $1.56 $1.75 Diluted $.54 $.60 $1.54 $1.72 Weighted-average shares outstanding: Basic 36,007 39,513 36,608 39,393 Diluted 36,559 40,482 37,082 40,232 JACK IN THE BOX INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 6, July 7, 2003 2002 - ---------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $10,328 $6,695 Accounts receivable, net 31,827 22,542 Inventories 32,404 30,055 Other current assets 45,646 73,121 ----------------------- Total current assets 120,205 132,413 ----------------------- Property and equipment, at cost 1,269,476 1,180,896 Accumulated depreciation and amortization (412,019) (365,768) ----------------------- Property and equipment, net 857,457 815,128 ----------------------- Other assets, net 158,816 106,873 ----------------------- TOTAL $1,136,478 $1,054,414 ======================= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $2,604 $72,456 Accounts payable 42,328 46,173 Other current liabilities 171,265 163,233 ----------------------- Total current liabilities 216,197 281,862 ----------------------- Long-term debt, net of current maturities 300,835 178,524 Other long-term liabilities 147,653 120,974 Total stockholders' equity 471,793 473,054 ----------------------- TOTAL $1,136,478 $1,054,414 ======================= CONTACT: Jack in the Box Inc. Karen Bachmann, 858-571-2229 Vice President, Corporate Communications karen.bachmann@jackinthebox.com www.jackinthebox.com -----END PRIVACY-ENHANCED MESSAGE-----