Brinker International, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 28, 2016; Revises Earnings Guidance for the Fiscal Year 2017; Provides Earnings Guidance for the Third Quarter of Fiscal Year 2017
January 25, 2017 at 07:15 am EST
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Brinker International, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 28, 2016. For the quarter, the company's total revenues were $771,043,000 compared with $788,610,000 a year ago. Operating income was $61,526,000 against $75,619,000 a year ago. Income before provision for income taxes was $48,268,000 compared with $68,272,000 a year ago. Net income was $34,637,000 or $0.69 per diluted share compared with $47,694,000 or $0.80 per diluted share a year ago. Adjusted earnings per share before special item were $0.71, a 9% decrease compared to prior year. These results were primarily driven by lower comp sales, reflecting weaker category performance compared to outlook entering the quarter. The company generated $42 million in free cash flow.
For the six months, the company's total revenues were $1,529,535,000 compared with $1,551,169,000 a year ago. Operating income was $103,002,000 against $131,866,000 a year ago. Income before provision for income taxes was $81,234,000 compared with $117,025,000 a year ago. Net income was $57,870,000 or $1.09 per diluted share compared with $80,901,000 or $1.34 per diluted share a year ago. Net cash provided by operating activities was $141,136,000 compared with $156,239,000 a year ago. Payments for property and equipment were $60,055,000 compared with $52,199,000 a year ago. Capital expenditures totaled $60.1 million. The company generated $81 million in free cash flow.
For the fiscal year 2017, the company expects total revenues to decrease approximately 2.0% to 2.5% on a GAAP basis and decrease approximately 1.0% to 1.5% excluding the impact of the 53rd week in fiscal 2016. Comparable restaurant sales are now estimated to be down 1.5% to 2.0%. Depreciation is now estimated to be flat to an increase of approximately $1.0 million. Free cash flow is estimated to be $205 to $215 million. The company has updated adjusted EPS guidance, primarily reflecting the impact of the lower-than-expected category on comp sale. The company now expects fiscal 2017 adjusted EPS of $3.05 to $3.15 compared to original guidance of $3.40 to $3.50.
For the third quarter of fiscal 2017, the company expects comp sales to remain negative, but improved compared to second quarter average. Looking at third quarter adjusted EPS, the company expects the year-over-year percentage change for third quarter to be moderately below the percent change of full year fiscal 2017 adjusted EPS.
Brinker International, Inc. is a casual dining restaurant company. The Company owns, develops, operates and franchises the Chilis Grill & Bar (Chilis) and Maggianos Little Italy (Maggianos) restaurant brands, as well as a virtual brand, Its Just Wings. The Company operates through two segments: Chiliâs and Maggianoâs. The Chiliâs segment includes the Company-owned Chiliâs restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chiliâs segment also has Company-owned restaurants in Canada, and franchised locations in the United States, other countries and two United States territories. The Maggianoâs segment includes the Company-owned Maggianoâs restaurants in the United States as well as its domestic franchise business. The Company owns, operates or franchises approximately 1,600 restaurants in approximately 29 countries and two United States territories.
Brinker International, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 28, 2016; Revises Earnings Guidance for the Fiscal Year 2017; Provides Earnings Guidance for the Third Quarter of Fiscal Year 2017