Jack in the Box Inc. (NASDAQ: JACK) today reported net earnings of $11.6 million, or $0.26 per diluted share, for the third quarter ended July 8, 2012, compared with net earnings of $18.7 million, or $0.38 per diluted share, for the third quarter of fiscal 2011.
Gains from refranchising contributed approximately $0.05 per diluted share for the quarter as compared with approximately $0.13 per diluted share in the prior year quarter.
Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share on a GAAP basis excluding gains from refranchising and restructuring charges, were $0.37 per diluted share compared with $0.25 per diluted share in the prior year quarter. A reconciliation of non-GAAP measurements to GAAP results is attached to this release.
During fiscal 2012, the company has been engaged in a comprehensive review of its organization structure, including evaluating opportunities for outsourcing, restructuring of certain functions and workforce reductions. As a result, restructuring charges of $11.3 million, or approximately $0.16 per diluted share, were recorded during the third quarter which relate primarily to costs resulting from employees electing to participate in the company’s voluntary early retirement program. These charges are included in “impairment and other charges, net” in the accompanying consolidated statement of earnings. The company expects to incur additional restructuring charges during the fourth quarter of 2012 relating to this review.Subsequent to the end of the third quarter, the company entered into an agreement to outsource its distribution business, and expects the transition to be completed by the end of the first quarter of fiscal 2013, subject to the anticipated completion of certain closing conditions. The company expects that the distribution business, including exit costs, will be reflected as discontinued operations beginning in the fourth quarter of 2012. Increase in same-store sales:
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