-----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, SaAXaKdnPeGjbuoWyyhwS7UBlB3jFMLMJjOW1AtWnrNaWL5rphvs71smsRuRr8qY NQ/exAOl/eHky3yP9xeXlw== 0001157523-10-007058.txt : 20101122 0001157523-10-007058.hdr.sgml : 20101122 20101122162448 ACCESSION NUMBER: 0001157523-10-007058 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20101122 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101122 DATE AS OF CHANGE: 20101122 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: 101209020 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 a6520476.htm 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):     November 22, 2010

 

JACK IN THE BOX INC.

(Exact name of registrant as specified in its charter)


DELAWARE

1-9390

95-2698708

(State or other jurisdiction

of incorporation)

(Commission File

Number)

(I.R.S. Employer

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)

Not Applicable
(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 November 22, 2010, Jack in the Box Inc. issued a press release announcing its fourth quarter fiscal 2010 operating results and disclosing other information. A copy of the press release is attached as Exhibit 99.1.

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS

(d)       Exhibits.

Exhibit  
No. Description
 
99.1 Press Release of Jack in the Box Inc. dated November 22, 2010



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:

/s/ JERRY P. REBEL

Jerry P. Rebel

Executive Vice President

Chief Financial Officer

(Principal Financial Officer)

(Duly Authorized Signatory)

Date: November 22, 2010

EX-99.1 2 a6520476ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

Jack in the Box Inc. Reports Fourth Quarter FY 2010 Earnings; Issues Guidance for FY 2011

SAN DIEGO--(BUSINESS WIRE)--November 22, 2010--Jack in the Box Inc. (NASDAQ: JACK) today reported net earnings of $4.0 million, or 7 cents per diluted share, for the fourth quarter ended Oct. 3, 2010, compared with earnings from continuing operations of $40.6 million, or 70 cents per diluted share, for the fourth quarter of fiscal 2009. Fiscal 2010 net earnings totaled $70.2 million, or $1.26 per diluted share, compared with earnings from continuing operations of $131.0 million, or $2.27 per diluted share, in fiscal 2009.

As previously announced, the company closed 40 Jack in the Box® company restaurants during the fourth quarter of fiscal 2010. In connection with the closures, the company recorded pre-tax charges totaling $28.0 million (included in “impairment and other charges, net” in the accompanying consolidated statements of earnings), which reduced diluted earnings per share by approximately 33 cents in fiscal 2010. These charges, as well as higher work opportunity tax credits and positive mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans, resulted in a tax benefit in the fourth quarter of 2010 versus a tax rate of 35.1 percent in the fourth quarter of 2009, and a 33.8 percent tax rate for fiscal 2010 compared with 37.7 percent in fiscal 2009.

The fourth quarter and fiscal year ended Oct. 3, 2010, included 13 weeks and 53 weeks, respectively, as compared to 12 weeks and 52 weeks in the fourth quarter and fiscal year ended Sept. 27, 2009, respectively. The company estimates that the extra week benefitted diluted earnings per share by approximately 3 cents in both the fourth quarter and fiscal 2010.


Increase (decrease) in same-store sales:

   

13 Weeks Ended
October 3, 2010

 

12 Weeks Ended
September 27, 2009

 

53 Weeks Ended
October 3, 2010

 

52 Weeks Ended
September 27, 2009

Jack in the Box:
Company (4.0 %) (6.0 %) (8.6 %) (1.2 %)
Franchise (2.8 %) (7.0 %) (7.8 %) (1.3 %)
System (3.3 %) (6.5 %) (8.2 %) (1.3 %)
Qdoba System 5.6 % (3.1 %) 2.8 % (2.3 %)
 

Linda A. Lang, chairman, chief executive officer and president, said, “Jack in the Box company same-store sales declined 4.0 percent in the fourth quarter and continued to be impacted by high unemployment in our major markets for our key customer demographics. With that said, we believe the investments we have made around service consistency and making noticeable quality improvements to some of our signature products are beginning to resonate with our guests. We remain focused on enhancing the entire guest experience, including the substantial completion of our restaurant re-imaging program system-wide, which is targeted by the end of 2011. We believe these actions will increase the customer appeal of the Jack in the Box brand and provide a catalyst for sales growth when unemployment and consumer spending begin to improve.

“Qdoba’s same-store sales momentum continued in the fourth quarter with an increase of 5.6 percent, driven by our Craft 2™ menu and higher catering sales, as well as increased spending by consumers in the fast-casual segment,” Lang said.

Consolidated restaurant operating margin was 12.5 percent of sales in the fourth quarter of 2010, compared with 15.8 percent of sales in the year-ago quarter. The company estimates that sales deleverage negatively impacted margins by approximately 110 basis points in the fourth quarter of 2010. For fiscal 2010, consolidated restaurant operating margin was 14.1 percent of sales, consistent with the company’s expectations.

Food and packaging costs in the fourth quarter were 90 basis points higher than prior year. Overall commodity costs were approximately 3 percent higher in the quarter, driven primarily by higher beef, cheese and pork costs which were partially offset by lower costs for poultry, shortening and bakery products.


Payroll and employee benefits costs were 29.9 percent of restaurant sales versus 29.6 percent in the year-ago quarter. An increase in workers’ compensation and other insurance costs negatively impacted payroll and employee benefits costs by approximately 50 basis points as compared to prior year.

Occupancy and other costs increased 210 basis points in the fourth quarter due primarily to sales deleverage, higher depreciation resulting from the company’s ongoing restaurant re-image program, increased repairs and maintenance, and additional costs relating to guest service initiatives.

Franchise costs for the fourth quarter increased to 45.5 percent of franchise revenues from 40.8 percent last year due primarily to sales deleverage against fixed rental costs.

Beginning in the fourth quarter of fiscal 2010, “impairment and other charges, net,” have been reclassified from “selling, general and administrative (‘SG&A’) expenses” in the company’s consolidated statements of earnings. A schedule reflecting this additional disclosure for each quarter of fiscal years 2009 and 2010 is included in the supplemental information at the end of this press release.

SG&A expense for the fourth quarter increased by $3.8 million and was 10.8 percent of revenues compared with 10.6 percent last year. SG&A expense for fiscal 2010 decreased by $17.3 million and was 10.6 percent of revenues compared with 10.5 percent last year. The variances in SG&A were attributable primarily to the following:

  • The 53rd week added approximately $3.6 million to SG&A in both the fourth quarter and fiscal 2010.
  • Pension expense, which is non-cash in nature, increased by $4.7 million in the fourth quarter and by $17.6 million for fiscal 2010, due primarily to lower discount rates. Cash pension contributions for the full year were similar to last year. In September 2010, the company’s board of directors approved changes to the pension plan whereby participants will no longer accrue benefits after December 31, 2015.
  • The company’s refranchising strategy and planned overhead reductions resulted in lower general and administrative costs of approximately $2.4 million for the fourth quarter and $14.8 million for the full year.
  • Advertising costs were $1.4 million lower in the fourth quarter and $11.7 million lower in fiscal 2010, as the impact of refranchising and the decline in Jack in the Box same-store sales was partially offset by incremental spending during the third and fourth quarters.
  • Incentive compensation declined by $2.2 million in the fourth quarter and $6.1 million in fiscal 2010.

  • Insurance recoveries related to Hurricane Ike resulted in a $1.2 million benefit in the fourth quarter and a $4.2 million benefit in fiscal 2010.
  • Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $2.1 million in the fourth quarter as compared to a positive impact of $2.6 million in last year’s fourth quarter, resulting in a year-over-year increase in SG&A of $0.5 million. For fiscal 2010, mark-to-market adjustments positively impacted SG&A by $2.7 million as compared to a negative impact of $0.3 million last year, resulting in a year-over-year decrease in SG&A of $3.0 million.

Gains on the sale of 108 company-operated Jack in the Box restaurants to franchisees totaled $18.9 million in the fourth quarter, or an average of $175,000. Total proceeds for the fourth quarter of 2010 related to refranchising were $37.2 million, or an average of $344,000 per restaurant. Fourth quarter transactions included the sale of an entire market with lower-than-average sales and cash flows. Excluding this transaction, average gains and proceeds for the fourth quarter were $352,000 and $510,000, respectively. The company provided $23.1 million in financing during the quarter for two of the six refranchising transactions, including the entire market sale discussed above, of which $18.7 million has been repaid thus far in the first quarter of 2011.

For fiscal 2010, gains on the sale of 219 company-operated restaurants to franchisees totaled $55.0 million, or approximately 65 cents per diluted share, compared with $78.6 million, or approximately 85 cents per diluted share in fiscal 2009 from the sale of 194 company-operated restaurants. Total proceeds for fiscal 2010 related to refranchising, including cash and notes receivable, were $92.0 million, or an average of $420,000 per restaurant.

“Refranchising is a critical element in transforming the company to a business model that is less capital intensive and not as susceptible to cost fluctuations,” Lang said. “Over the last five years, we have refranchised 680 restaurants and increased franchise ownership from 25 percent to nearly 57 percent of the system. We are ahead of our plan to achieve our goal to increase the percentage of franchise ownership in the Jack in the Box system to 70 to 80 percent by the end of fiscal year 2013.”

The company repurchased approximately 2,346,000 shares of its common stock in the fourth quarter of 2010 at an average price of $20.01 per share and approximately 4,914,000 shares of its common stock in fiscal 2010 at an average price of $19.71 per share. These repurchases completed the company’s stock-buyback program authorized by its board of directors in November 2007. In November 2010, the company’s board of directors authorized a $100 million stock-buyback program that expires in November 2011.


Capital expenditures decreased to $95.6 million in fiscal year 2010 versus expenditures of $153.5 million last year. Fiscal 2010 spending was lower than the company’s guidance of $125 to $135 million due to lower-than-anticipated costs for new restaurants, re-images and capital maintenance projects completed during the year, as well as lower construction-in-progress spending for new restaurants and re-images slated for completion in early 2011.

Restaurant openings

Fourteen new Jack in the Box restaurants opened in the fourth quarter, including 2 franchised locations, compared with 15 new restaurants opened system-wide during the same quarter last year, of which 7 were franchised. For the full year, 46 new Jack in the Box restaurants opened, including 16 franchised locations, compared with 64 new restaurants in fiscal 2009, 21 of which were franchised.

A key element of the company’s growth strategy is to expand the Jack in the Box brand into new markets. Earlier this month, the company opened the first of several restaurants planned in the Kansas City market.

In the fourth quarter, 13 Qdoba restaurants opened, including 6 franchised locations, versus 21 new restaurants in the year-ago quarter, 11 of which were franchised. For the full year, 36 Qdoba restaurants opened, including 21 franchised locations, compared with 62 new restaurants in fiscal 2009, 38 of which were franchised.

At Oct. 3, 2010, the company’s system total comprised 2,206 Jack in the Box restaurants, including 1,250 franchised locations, and 525 Qdoba restaurants, including 337 franchised locations.

Fourth quarter FY 2010 initiatives

The chain’s fourth-quarter advertising supported a value-priced combo meal featuring a new product, Jack’s Really Big Chicken Sandwich. The sandwich includes two breaded chicken patties, lettuce, tomato, bacon, cheese and mayo-onion sauce served on a jumbo bakery bun. The combo meal, which was priced at $3.99, featured the new sandwich, a small fountain drink and small order of seasoned curly fries.

In addition to this value promotion, a new premium product, the Pastrami Grilled Sandwich, debuted in late August. Made with hot pastrami, the item is a line extension of the brand’s popular Grilled Sandwich platform, which currently includes a Grilled Breakfast Sandwich, the Deli Trio and the Turkey, Bacon & Cheddar sandwiches, each served on grilled artisan bread.


To build upon the continued strength of its breakfast daypart, Jack in the Box expanded its breakfast menu during the quarter with a Breakfast Pita Pocket. The new Breakfast Pita Pocket, which features scrambled eggs, bacon, ham and American cheese stuffed in a pita made with whole grains, is served with a side of fire-roasted salsa and available in most markets for $2.69.

In addition to these value, premium and breakfast messages, media also featured the Raspberry Trio, which includes a Raspberry Real Fruit Smoothie, a Raspberry Shake made with real ice cream, and Raspberry Iced Tea.

During the fourth quarter, Jack in the Box implemented a comprehensive, system-wide program to improve guest service by delivering a more consistent dining experience. Along with evaluating restaurant performance via the chain’s Voice of Guest surveys, additional resources are being committed to more closely measure how restaurants are executing the key drivers of guest satisfaction.

Another driving factor of guest satisfaction is the restaurant environment. In the fourth quarter, 128 company and franchised restaurants were re-imaged with interior enhancements including new flooring, seating, lighting, wall coverings and other decorative treatments. At fiscal year end, nearly 68 percent of company restaurants – and more than 55 percent of the Jack in the Box system – featured all interior and exterior elements of the re-image program.

First quarter FY 2011 initiatives

In addition to increasing the restaurants’ focus on guest service, Jack in the Box is making noticeable, quality improvements to several of the chain’s signature products. Jack’s iconic tacos are among the chain’s top-selling favorites that were recently enhanced. To promote the improved tacos, last Tuesday from 2 p.m. to midnight, Jack in the Box gave away two free tacos to guests upon request.

Along with promoting premium products in its advertising, like the Pastrami Grilled Sandwich, Jack in the Box is also emphasizing value in its first-quarter media messages. In early October, Jack in the Box introduced a value promotion offering guests two Croissant Sandwiches for just $3. Jack in the Box offers three varieties of Croissant Sandwiches: Sausage, Extreme Sausage and Supreme, the latter of which includes new hickory-smoked bacon.


Jack in the Box launched a second value promotion last week featuring the double-patty Bonus Jack®, a popular guest favorite from the 1970s. For a limited time, the Bonus Jack is available in a combo meal with a small order of fries and small drink for just $3.99.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the first quarter ending Jan. 23, 2011, and the fiscal year ending Oct. 2, 2011. Fiscal 2011 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters. Fiscal 2010 was a 53-week year, with the additional week occurring in the fourth quarter.

First quarter fiscal year 2011 guidance

  • Same-store sales are expected to range from down 1 percent to up 1 percent at Jack in the Box company restaurants versus an 11.1 percent decrease in the year-ago quarter.
  • Same-store sales are expected to increase approximately 4 to 6 percent at Qdoba system restaurants versus a 1.7 percent decrease in the year-ago quarter.

Fiscal year 2011 guidance

  • Same-store sales are expected to range from down 2 percent to up 2 percent at Jack in the Box company restaurants.
  • Same-store sales are expected to increase approximately 2 to 4 percent at Qdoba system restaurants.
  • Overall commodity costs are expected to increase by 1 to 2 percent for the full year, with higher inflation in the first half of the fiscal year.
  • Restaurant operating margin for the full year is expected to range from 14.0 to 14.5 percent, depending on same-store sales and commodity inflation.
  • 30 to 35 new Jack in the Box restaurants, including approximately 25 company locations.
  • 50 to 60 new Qdoba restaurants, including approximately 25 company locations.
  • $55 to $65 million in gains on the sale of 175 to 225 Jack in the Box restaurants to franchisees, with $85 to $95 million in total proceeds resulting from the sales.

  • Capital expenditures of $135 to $145 million, including the carryover of projects from fiscal 2010. Following the planned completion of the Jack in the Box re-image program, annual capital expenditures are anticipated to be approximately $110 million or less.
  • SG&A expense in the mid-10 percent range, excluding impairment and other charges.
  • Tax rate of approximately 37 to 38 percent.
  • Diluted earnings per share of $1.41 to $1.68, with the range reflecting uncertainty in the timing of anticipated refranchising transactions as well as same-store sales volatility. Gains from refranchising are expected to contribute from $0.66 to $0.78 to diluted earnings per share, as compared to $0.65 in fiscal 2010. Operating earnings per share, which the company defines as diluted earnings per share on a GAAP basis less gains from refranchising, are expected to range from $0.75 to $0.90 per diluted share. Diluted earnings per share includes approximately $0.10 to $0.12 of incremental re-image incentive payments to franchisees in fiscal 2011 as compared to fiscal 2010.

Conference call

The company will host a conference call for financial analysts and investors on Tuesday, November 23, 2010, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:00 a.m. PT on November 23.


About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 19 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 500 restaurants in 43 states and the District of Columbia. For more information, visit www.jackinthebox.com.

Safe harbor statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the success of new products and marketing initiatives, the impact of competition, unemployment and trends in consumer spending patterns. These factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at www.jackinthebox.com or in hard copy upon request. 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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

(Unaudited)

         
  Thirteen Weeks Ended   Twelve Weeks Ended   Fifty-Three Weeks Ended   Fifty-Two Weeks Ended
October 3, September 27, October 3,

September 27,

  2010 2009 2010 2009
 
Revenues:
Company restaurant sales $ 391,989 $ 421,281 $ 1,668,527 $ 1,975,842
Distribution sales 108,558 70,618 397,977 302,135
Franchise revenues   62,666     48,391     231,027     193,119  
  563,213     540,290     2,297,531     2,471,096  
Company restaurant costs:
Food and packaging 126,328 131,704 530,613 639,916
Payroll and employee benefits 117,127 124,866 505,138 587,551
Occupancy and other   99,644     98,297     398,066     428,979  
Total company restaurant costs 343,099 354,867 1,433,817 1,656,446
Distribution costs 108,776 70,864 399,707 300,934
Franchise costs 28,535 19,763 104,845 78,414
Selling, general and administrative expenses 60,902 57,132 243,353 260,662
Impairment and other charges, net 35,653 5,323 48,887 22,014
Gains on the sale of company-operated restaurants, net   (18,934 )   (34,322 )   (54,988 )   (78,642 )
  558,031     473,627     2,175,621     2,239,828  
 
Earnings from operations 5,182 66,663 121,910 231,268
 
Interest expense, net   4,165     4,095     15,894     20,767  
 
Earnings from continuing operations and before income taxes 1,017 62,568 106,016 210,501
 
Income taxes   (3,024 )   21,951     35,806     79,455  
 
Earnings from continuing operations 4,041 40,617 70,210 131,046
 

Earnings (losses) from discontinued operations, net

  -     (25 )   -     (12,638 )
Net earnings $ 4,041   $ 40,592   $ 70,210   $ 118,408  
 
Net earnings per share - basic:
Earnings from continuing operations $ 0.08 $ 0.71 $ 1.27 $ 2.31
Earnings (losses) from discontinued operations, net   -     -     -    

(0.23

)
Net earnings per share $ 0.08   $ 0.71   $ 1.27   $ 2.08  
 
Net earnings per share - diluted:
Earnings from continuing operations $ 0.07 $ 0.70 $ 1.26 $ 2.27
Earnings (losses) from discontinued operations, net   -     -     -     (0.22 )
Net earnings per share $ 0.07   $ 0.70   $ 1.26   $ 2.05  
 
Weighted-average shares outstanding:
Basic 53,836 57,016 55,070 56,795
Diluted 54,579 57,864 55,843 57,733
 

 

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

(Unaudited)

   
October 3, September 27,
2010 2009
 
ASSETS
Current assets:
Cash and cash equivalents $ 10,607 $ 53,002
Accounts and other receivables, net 81,150 49,036
Inventories 37,391 37,675
Prepaid expenses 33,563 8,958
Deferred income taxes 46,185 44,614
Assets held for sale 59,897 99,612
Other current assets   6,129     7,152  
Total current assets   274,922     300,049  
 
Property and equipment, at cost:
Land 101,206 101,576
Buildings 965,312 936,351
Restaurant and other equipment 437,547 506,185
Construction in progress   58,664     58,135  
1,562,729 1,602,247
Less accumulated depreciation and amortization   (684,690 )   (665,957 )
Property and equipment, net   878,039     936,290  
 
Intangible assets, net 17,986 18,434
Goodwill 85,041 85,843
Other assets, net   151,104     115,294  
$ 1,407,092   $ 1,455,910  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities:
Current maturities of long-term debt $ 13,781 $ 67,977
Accounts payable 101,216 63,620
Accrued liabilities   168,186     206,100  
Total current liabilities   283,183     337,697  
 
Long-term debt, net of current maturities 352,630 357,270
 
Other long-term liabilities 250,440 234,190
 
Deferred income taxes 376 2,264
 
Stockholders’ equity:
Preferred stock $.01 par value, 15,000,000 shares authorized, none issued - -

Common stock $.01 par value, 175,000,000 shares authorized, 74,461,632 and 73,987,070 issued, respectively

745 740
Capital in excess of par value 187,544 169,440
Retained earnings 982,420 912,210
Accumulated other comprehensive loss, net (78,787 ) (83,442 )

Treasury stock, at cost, 21,640,400 and 16,726,032 shares, respectively

  (571,459 )   (474,459 )
Total stockholders' equity   520,463     524,489  
$ 1,407,092   $ 1,455,910  
 

 

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

         
Fiscal Year
  2010     2009     2008  
 
Cash flows from operating activities:
Net earnings $ 70,210 $ 118,408 $ 119,279
Losses (earnings) from discontinued operations, net   -     12,638     (1,070 )
Net earnings from continuing operations 70,210 131,046 118,209
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 101,514 100,830 96,943
Deferred finance cost amortization 1,658 1,461 1,462
Deferred income taxes

(27,554

) (15,331 ) 6,643
Share-based compensation expense 10,605 9,341 10,566
Pension and postretirement expense 29,140 12,243 14,433
Losses (gains) on cash surrender value of company-owned life insurance (6,199 ) 1,910 8,172
Gains on the sale of company-operated restaurants, net (54,988 ) (78,642 ) (66,349 )
Gains on the acquisition of franchise-operated restaurants - (958 ) -
Losses on the disposition of property and equipment, net 10,757 11,418 17,373
Impairment charges and other 12,970 6,586 3,507
Loss on early retirement of debt 513 - -
Changes in assets and liabilities, excluding acquisitions and dispositions:
Accounts and other receivables (8,174 ) 3,519 (9,172 )
Inventories 284 7,596 (4,452 )
Prepaid expenses and other current assets

(22,967

) 11,496 7,026
Accounts payable (2,219 ) (14,975 ) 4,167
Pension and postretirement contributions (24,072 ) (26,233 ) (25,012 )
Other  

(27,440

)   (13,983 )   (16,481 )
Cash flows provided by operating activities from continuing operations 64,038 147,324 167,035

Cash flows provided by (used in) operating activities from discontinued operations

  (2,172 )   1,426     5,349  
Cash flows provided by operating activities   61,866     148,750     172,384  
 
Cash flows from investing activities:
Purchases of property and equipment (95,610 ) (153,500 ) (178,605 )
Proceeds from the sale of company-operated restaurants 66,152 94,927 57,117
Proceeds from (purchases of) assets held for sale and leaseback, net 45,348 (36,824 ) (14,003 )
Collections on notes receivable 8,322 31,539 7,942
Acquisition of franchise-operated restaurants (8,115 ) (6,760 ) -
Other   3,076     (989 )   (4,857 )

 

Cash flows provided by (used in) investing activities from continuing operations

19,173 (71,607 ) (132,406 )

Cash flows provided by (used in) investing activities from discontinued operations

  -     30,648     (1,964 )
Cash flows provided by (used in) investing activities   19,173     (40,959 )   (134,370 )
Cash flows from financing activities:
Borrowings on revolving credit facility 881,000 541,000 650,000
Repayments of borrowings on revolving credit facility (721,000 ) (632,000 ) (559,000 )
Proceeds from issuance of debt 200,000 - -
Principal repayments on debt (418,836 ) (2,334 ) (5,722 )
Debt issuance costs (9,548 ) - -
Proceeds from issuance of common stock 5,186 4,574 8,642
Repurchase of common stock (97,000 ) - (100,000 )
Excess tax benefits from share-based compensation arrangements 2,037 664 3,346
Change in book overdraft   34,727     (14,577 )   (3,098 )
Cash flows used in financing activities   (123,434 )   (102,673 )   (5,832 )
 
Net increase (decrease) in cash and cash equivalents (42,395 ) 5,118 32,182
Cash and cash equivalents at beginning of period   53,002     47,884     15,702  
Cash and cash equivalents at end of period $ 10,607   $ 53,002   $ 47,884  
 

 

JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(Unaudited)

 

The following table sets forth, unless otherwise indicated, the percentage relationship to total revenues of certain items included in our condensed consolidated statements of earnings. Percentages may not add due to rounding.

       
Thirteen Weeks Ended   Twelve Weeks Ended   Fifty-Three Weeks Ended   Fifty-Two Weeks Ended
October 3, September 27, October 3, September 27,
2010 2009 2010 2009
Statement of Earnings Data:
Revenues:
Company restaurant sales 69.6 % 78.0 % 72.6 % 80.0 %
Distribution sales 19.3 % 13.1 % 17.3 % 12.2 %
Franchise revenues 11.1 % 9.0 % 10.1 % 7.8 %
Total revenues 100.0 % 100.0 % 100.0 % 100.0 %
 
Food and packaging (1) 32.2 % 31.3 % 31.8 % 32.4 %
Payroll and employee benefits (1) 29.9 % 29.6 % 30.3 % 29.7 %
Occupancy and other (1) 25.4 % 23.3 % 23.9 % 21.7 %
Total company restaurant costs (1) 87.5 % 84.2 % 85.9 % 83.8 %
Distribution costs (1) 100.2 % 100.3 % 100.4 % 99.6 %
Franchise costs (1) 45.5 % 40.8 % 45.4 % 40.6 %
Selling, general and administrative expenses 10.8 % 10.6 % 10.6 % 10.5 %
Impairment and other charges, net 6.3 % 1.0 % 2.1 % 0.9 %
Gains on the sale of company-operated restaurants, net (3.4 )% (6.4 )% (2.4 )% (3.2 )%
Earnings from operations 0.9 % 12.3 % 5.3 % 9.4 %
 
Income tax rate (2) (297.3 )% 35.1 % 33.8 % 37.7 %
 
   

(1) As a percentage of the related sales and/or revenues

(2) As a percentage of earnings from continuing operations and before income taxes.

 

Beginning in the fourth quarter of fiscal 2010, we have separated impairment and other charges, net from selling, general and administrative expenses (“SG&A”) in our consolidated statements of earnings. SG&A and Impairment and other charges, net for each quarter of fiscal years 2010 and 2009 were as follows:

           

16 Weeks Ended

12 Weeks Ended

13 Weeks Ended

Fiscal Year 2010

Jan. 17, 2010

Apr. 11, 2010

July 4, 2010

Oct. 3, 2010

Selling, general and administrative expenses

$ 70,678 10.4 % $ 54,742 10.3 % $ 57,031 10.9 % $ 60,902 10.8 %
Impairment and other charges, net $ 2,679 0.4 % $ 3,452 0.7 % $ 7,103 1.4 % $ 35,653 6.3 %
 
16 Weeks Ended 12 Weeks Ended

Fiscal Year 2009

Jan. 18, 2009 Apr. 12, 2009 July 5, 2009 Sept. 27, 2009
Selling, general and administrative expenses $ 84,876 10.9 % $ 61,082 10.6 % $ 57,572 10.0 % $ 57,132 10.6 %
Impairment and other charges, net $ 5,903 0.8 % $ 5,827 1.0 % $ 4,961 0.9 % $ 5,323 1.0 %
 

 

JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(Unaudited)

         

The following table summarizes the changes in the number of Jack in the Box and Qdoba company-operated and franchised restaurants:

 
Year Ended October 3, 2010 Year Ended September 27, 2009
        Company   Franchised   Total Company   Franchised   Total
Jack in the Box:      
Beginning of period 1,190 1,022 2,212 1,346 812 2,158
New 30 16 46 43 21 64
Acquired from franchisees 1 (1 ) - 1 (1 ) -
Refranchised (219 ) 219 - (194 ) 194 -
Closed (46 ) (6 ) (52 ) (6 ) (4 ) (10 )
End of period 956   1,250   2,206   1,190   1,022   2,212  
% of system 43 % 57 % 100 % 54 % 46 % 100 %
Qdoba:
Beginning of period 157 353 510 111 343 454
New 15 21 36 24 38 62
Acquired from franchisees 16 (16 ) - 22 (22 ) -
Closed -   (21 ) (21 ) -   (6 ) (6 )
End of period 188   337   525   157   353   510  
% of system 36 % 64 % 100 % 31 % 69 % 100 %
 
Consolidated:            
Total system 1,144   1,587   2,731   1,347   1,375   2,722  
% of system 42 % 58 % 100 % 49 % 51 % 100 %

CONTACT:
Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, 858-571-2407
or
Media Contact:
Brian Luscomb, 858-571-2291

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