-----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, PtsQ47V87Ry0fYez1RBniZDIjx5jCNVY3JdazAIqeC2JbV21cxCvcovTZqw07/wh Lv9hNs9ffmcVhRSSwMJryw== 0001157523-07-005243.txt : 20070516 0001157523-07-005243.hdr.sgml : 20070516 20070516065518 ACCESSION NUMBER: 0001157523-07-005243 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070516 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070516 DATE AS OF CHANGE: 20070516 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: 1002 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09390 FILM NUMBER: 07855908 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 a5403926.txt JACK IN THE BOX INC. 8-K UNITED STATES 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): May 16, 2007 -------------- JACK IN THE BOX INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 1-9390 95-2698708 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation) Number) Identification Number) 9330 BALBOA AVENUE, SAN DIEGO, CA 92123 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (858) 571-2121 -------------- (Registrant's telephone number, including area code) N/A --- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION --------------------------------------------- On May 16, 2007, Jack in the Box Inc. issued a press release furnished as Exhibit 99.1, announcing the company's second-quarter results and third-quarter and fiscal-year 2007 guidance. Jack in the Box Inc. will conduct a conference call on May 16, 2007, at 8:30 a.m. PDT to review Jack in the Box Inc. second-quarter results and third-quarter and fiscal- year 2007 guidance. Investors can hear this conference call live by visiting the Jack in the Box Inc. home page at www.jackinthebox.com. Access the Jack in the Box Inc. home page at least 15 minutes prior to the call to download and install any necessary audio software. For a limited time, investors can hear replays of the conference call by visiting www.jackinthebox.com and clicking on the conference call link. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- (C) EXHIBITS The following exhibit is filed as part of this report: Exhibit No. Description - ------- --------------- 99.1 Press Release of Jack in the Box Inc. dated May 16, 2007 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: JERRY P. REBEL ---------------------------- Jerry P. Rebel Executive Vice President Chief Financial Officer (Principal Financial Officer) (Duly Authorized Signatory) Date: May 16, 2007 EX-99.1 2 a5403926ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Jack in the Box Inc. Reports Record Second Quarter Profit; Raises Fiscal 2007 Earnings Forecast and Provides Third-Quarter Guidance SAN DIEGO--(BUSINESS WIRE)--May 16, 2007--Fueled by another strong quarter of comparable sales growth at its namesake Jack in the Box(R) restaurants, Jack in the Box Inc. (NYSE:JBX) today reported that earnings increased to $27.2 million, or 80 cents per diluted share, for the second quarter ended April 15, 2007, compared with $21.8 million, or 61 cents per diluted share, for the same quarter a year ago. Year-to-date net earnings increased to $64.6 million, or $1.83 per diluted share, versus $47.0 million, or $1.31 per diluted share, last year - a 39 percent improvement in EPS. Second quarter earnings exceeded the high end of the range previously forecast by the company and analysts' First Call consensus estimate of 70 cents. "Our commitment to reinvent the Jack in the Box brand has generated new products and new initiatives that drove the increase in restaurant sales for the first half of the year," said Linda A. Lang, chairman and chief executive officer. "We continue to develop a strong lineup of innovative and high-quality menu items, like our new 100% Sirloin Burger, which we introduced earlier this month and is the only 100% sirloin burger offered by a major quick-serve chain." Second quarter financial highlights Same-store sales at Jack in the Box company restaurants increased 6.4 percent in the second quarter, with an increase in both average check and transactions, on top of a year-ago increase of 4.0 percent. Year to date, same-store sales are up 5.9 percent on top of a 4.9 percent increase for the same period last year. System same-store sales at Qdoba Mexican Grill(R) increased 3.5 percent in the second quarter on top of a 5.6 percent increase in the second quarter of 2006. Year to date, same-store sales are up 3.8 percent at Qdoba, on top of a 6.8 percent increase for the first half of fiscal 2006. Restaurant operating margin improved to 18.3 percent of sales in the second quarter compared with 17.6 percent of sales a year ago, due primarily to fixed cost leverage from higher sales in 2007 and lower utility costs. For the first half of fiscal 2007, restaurant operating margin improved to 18.3 percent of sales versus 16.9 percent of sales for the same period a year ago, with the 140 basis point improvement due primarily to the same reasons cited for the quarterly increase as well as lower food and packaging costs. SG&A expense rate in the second quarter improved to 10.5 percent of revenues compared with 11.2 percent last year, due primarily to leverage from higher sales and franchise revenues, lower pension expense, and the impact of the company's refranchising strategy. Ten company and franchised Jack in the Box restaurants opened in the second quarter, compared with 5 new restaurants that opened in the same quarter a year ago. Qdoba opened 13 company and franchised restaurants in the second quarter, the same as last year. At April 15, the company's system total comprised 2,098 company and franchised Jack in the Box restaurants, including 57 with Quick Stuff convenience stores, and 353 company and franchised Qdoba restaurants. Gains on sale of company-operated restaurants were $7.2 million in the second quarter, resulting from the sale of 15 Jack in the Box company restaurants to franchisees. In the second quarter of fiscal 2006, gains on sale of company-operated restaurants totaled $7.5 million, resulting from the sale of 13 Jack in the Box company restaurants to franchisees. The difference in average gains is related to the specific sales and cash flows of restaurants sold. The effective tax rate in the second quarter was 36.5 percent versus 37.0 percent a year ago. Capital expenditures, including capital lease obligations, were $29.1 million in the quarter compared with $21.5 million in fiscal 2006, with the increase due primarily to investment in the Jack in the Box re-image program. Second quarter initiatives In the second quarter, Jack in the Box added several new products as part of the company's strategy to holistically reinvent the Jack in the Box brand through major upgrades to its menu, restaurant environment and guest service. Menu additions included the following products: -- Steak 'n' Mushroom Ciabatta Sandwich, which features tender, marinated, 100-percent sirloin steak on toasted ciabatta bread with savory sliced mushrooms, provolone cheese, grilled onions and creamy peppercorn mayo. -- Jack's Sampler Trio, which includes three stuffed jalapenos, three mozzarella cheese sticks and seven Spicy Chicken Bites - a new snack item consisting of chicken breast pieces with a spicy, crunchy coating. The Sampler Trio is served with buttermilk ranch and zesty marinara dipping sauces. -- Grilled cheese sandwich, which features two slices of American cheese on sourdough bread. This product joined Jack's Kids' Meal(R) menu along with new 8-ounce milk chugs, available in reduced-fat regular or low-fat chocolate flavors. -- Andes(R) Mint Shake, which blends real vanilla ice cream, mint flavor and pieces of Andes chocolate mint candy and features whipped topping and a maraschino cherry. Through the first half of fiscal 2007, Jack in the Box re-imaged 56 restaurants and remains on pace to re-image 150-200 restaurants in fiscal 2007 with a comprehensive program that includes a complete redesign of the dining room and common areas. Interior finishes include ceramic tile floors, a mix of seating styles ranging from booths and bars to high-top round tables, decorative pendant lighting, and graphics and wall collages. The program, which is expected to be rolled out to the entire Jack in the Box system in 4-5 years, also includes music, uniforms and packaging, along with new paint schemes, landscaping and other exterior enhancements. According to a proprietary brand image and loyalty study, the newly re-imaged restaurants are expanding their customer base, generating more guest visits, and gaining more loyal users. "Our re-imaged restaurants are receiving higher ratings on all attributes, from being trendy and a good dining destination to providing friendly, consistent customer service," Lang said. "This has led to positive sales trends in the re-imaged markets." In the second quarter, Jack in the Box also completed the installation of new interior and exterior menu boards at all locations. Treasury highlights In the second quarter the company repurchased under a 10b5-1 plan approximately 3.2 million shares of its common stock at an aggregate cost of approximately $220 million. Including 2.3 million shares acquired through a modified Dutch auction tender offer in December, the company has repurchased approximately 5.5 million shares of its stock in fiscal 2007 at an aggregate cost of approximately $363 million. The company still has a $100 million authorization from its board to repurchase Jack in the Box stock. Using its available cash resources, the company prepaid without penalty $60 million of its $475 million term loan in the second quarter. The paydown will reduce borrowing rates by 25 basis points and result in an annualized interest savings of approximately $2.0 million. To reduce future exposure to rising interest rates, the company in March entered into interest-rate swap agreements to effectively convert $200 million of its $415 million term loan at floating interest rates to a fixed rate for three years. Fiscal year 2007 guidance update (in approximate amounts) Jack in the Box Inc. today updated its earnings guidance and certain underlying assumptions for fiscal year 2007: -- $3.45-3.50 per diluted share in earnings. -- 5.0-6.0 percent same-store sales increase at Jack in the Box company-operated restaurants. -- 3.0-5.0 percent same-store sales increase at Qdoba system restaurants. -- $29-31 million in gains from the sale of 70-80 restaurants to franchisees. -- 36-37 percent tax rate. -- 40-45 new company and franchise-operated Jack in the Box restaurants. -- 80-90 new company and franchise-operated Qdoba restaurants. -- $160-170 million in capital expenditures, including investment costs related to the Jack in the Box restaurant re-image program and kitchen enhancements. Third quarter guidance (in approximate amounts) Jack in the Box Inc. also today announced the following guidance for the third quarter of 2007: -- 85-89 cents per diluted share in earnings, which reflects an expected 5-6 percent increase in beef costs versus the prior year's quarter. -- 5.0-6.0 percent same-store sales increase at Jack in the Box company-operated restaurants. Third quarter initiatives -- Near the beginning of May, Jack in the Box introduced a 100% Sirloin Burger, the first all-sirloin beef patty among major quick-serve chains. Weighing in at nearly one-third of a pound after cooking, the 100% Sirloin Burger features a sirloin patty on a toasted bakery-style bun with peppercorn mayo, pickle strips, lettuce, tomato, and a choice of American, cheddar or Swiss cheese, grilled or red onions, and bacon. -- Earlier this month Jack in the Box added a blackberry flavor to its lineup of shakes. The new shake features real vanilla ice cream blended with pieces of real blackberries and served with creamy whipped topping and a maraschino cherry. -- To continue to grow breakfast transactions and build consumer awareness for its Buttermilk Biscuit Sandwiches, Jack in the Box last month launched a 2 for $2 campaign. The two builds of Buttermilk Biscuit Sandwiches feature a freshly fried egg, slice of American cheese, and choice of sausage patty or bacon. -- In June, Jack in the Box will launch an upgrade to its line of entree salads, which will feature a new blend of mostly Romaine lettuce and spring mix, and offer guests the opportunity to customize their salad with grilled or crispy chicken breast strips. The company will also introduce the new BBQ Ranch Chicken Salad, which will be topped with real cheddar cheese, fresh cucumber slices and red onion rings, and served with crunchy barbecue tortilla strips, barbecue sauce and ranch dressing on the side. 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 more than 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, the company operates and franchises Qdoba Mexican Grill(R), an emerging leader in fast-casual dining, with more than 350 restaurants in 39 states. For more information, visit www.jackinthebox.com. Safe harbor statement Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that are subject to substantial risks and uncertainties. These statements may be identified by the use of words such as "believe," "expects," "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 the opening of new or remodeled restaurants; costs that exceed projections; 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 weather or other adverse conditions in the regions in which restaurants are located; changes in laws, regulations and accounting rules and interpretations; the costs of legal claims by employees, franchisees, customers, stockholders and others; and adverse economic and other local, national and international conditions or events which affect consumer confidence and spending. 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 and its periodic reports on Forms 10-Q filed with the Securities and Exchange Commission. The information in this press release is as of May 15, 2007. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise. 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 ------------------- ----------------------- April 15, April 16, April 15, April 16, 2007 2006 2007 2006 ------------------- ----------------------- Revenues: Restaurant sales $500,445 $487,822 $1,151,853 $1,127,702 Distribution and other sales 129,807 108,122 293,557 248,083 Franchised restaurant revenues 30,415 22,819 71,949 55,981 --------- --------- ----------- ----------- 660,667 618,763 1,517,359 1,431,766 --------- --------- ----------- ----------- Operating costs and expenses: Restaurant costs of sales 155,205 151,569 357,331 355,514 Restaurant operating costs 253,750 250,418 583,388 581,566 Distribution and other costs of sales 128,359 107,134 291,154 245,292 Franchised restaurant costs 12,923 9,984 29,343 22,851 Selling, general and administrative expenses 69,552 69,131 158,904 158,681 Gains on sale of company-operated restaurants (7,244) (7,473) (14,401) (14,187) --------- --------- ----------- ----------- 612,545 580,763 1,405,719 1,349,717 --------- --------- ----------- ----------- Earnings from operations 48,122 38,000 111,640 82,049 Interest expense, net 5,281 3,440 10,775 7,430 --------- --------- ----------- ----------- Earnings before income taxes 42,841 34,560 100,865 74,619 Income taxes 15,632 12,773 36,302 27,609 --------- --------- ----------- ----------- Net earnings $27,209 $21,787 $64,563 $47,010 ========= ========= =========== =========== Net earnings per share: Basic $.82 $.63 $1.89 $1.35 Diluted $.80 $.61 $1.83 $1.31 Weighted-average shares outstanding: Basic 33,060 34,482 34,249 34,766 Diluted 33,944 35,701 35,213 35,921 JACK IN THE BOX INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) April 15, April 16, 2007 2006 - ---------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $77,113 $159,134 Accounts and notes receivable, net 42,927 27,200 Inventories 45,495 39,789 Other current assets 98,535 104,535 ----------- ----------- Total current assets 264,070 330,658 ----------- ----------- Property and equipment, net 903,997 867,643 Other assets, net 215,269 177,547 ----------- ----------- TOTAL $1,383,336 $1,375,848 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $5,950 $7,884 Other current liabilities 269,410 264,494 ----------- ----------- Total current liabilities 275,360 272,378 ----------- ----------- Long-term debt, net of current maturities 429,911 285,937 Other long-term liabilities 215,523 215,190 ----------- ----------- Total liabilities 920,794 773,505 ----------- ----------- Stockholders' equity 462,542 602,343 ----------- ----------- TOTAL $1,383,336 $1,375,848 =========== =========== CONTACT: Jack in the Box Inc. Brian Luscomb, 858-571-2229 Division Vice President, Corporate Communications brian.luscomb@jackinthebox.com www.jackinthebox.com -----END PRIVACY-ENHANCED MESSAGE-----