Probility Media Corp
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Company profile

Probility Media Corporation, formerly Panther Biotechnology, Inc., is an e-commerce company building service training and career advancement brand for the skilled trades. The Company is also an online aggregator of e-learning and training content, exam preparation, testing, certification, continuing education, compliance and career advancement tools for engineers, tradesman and offers technical solutions in a range of professions. It offers advisory services to both small businesses and large corporations. It is engaged in preparing the individual from high school graduation to career placement and for life. The Company offers online subscription services for enterprise level companies. The Company, through its divisions, Brown Technical Media Corporation, Brown Technical Publications Inc., Brown Book Shop, Inc., National Electric Wholesale Providers, LLC and One Exam Prep, LLC, is in the process of executing a strategy of defragmenting the skilled trades training market place.

Closing Price
$0.0001
Day's Change
0.00 (0.00%)
Bid
--
Ask
--
B/A Size
--
Day's High
0.0001
Day's Low
0.0001
Volume
(Light)
Volume:
100,000

10-day average volume:
3,487,513
100,000

Jack in the Box Inc. Reports Second Quarter FY 2020 Earnings

4:05 pm ET May 13, 2020 (BusinessWire) Print

Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the second quarter ended April 12, 2020.

Increase/(Decrease) in same-store sales:
                                         
     12 Weeks Ended                      12 Weeks Ended                      28 Weeks Ended       28 Weeks Ended                      28 Weeks Ended
                     -------------------- ------------------------------------------------   -------------------- -------------------- ------------------------------------------------
     April 12, 2020    April 12, 2020    April 14, 2019    April 14, 2019    April 12, 2020       April 12, 2020    April 12, 2020    April 14, 2019    April 14, 2019
                     -------------------- -------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- --------------
Company                     (4.1)%            (4.1)%            0.6%               (0.1)%            (0.1)%            0.5%
Franchise                   (4.2)%            (4.2)%            0.1%               (0.9)%            (0.9)%            0.0%

Jack in the Box(R) system same-store sales decreased 4.2 percent for the quarter. Company same-store sales decreased 4.1 percent in the second quarter driven by average check growth of 6.4 percent while transactions decreased 10.5 percent. As previously disclosed, system same-store sales increased 5.2 percent in the seven weeks ended March 8, 2020, prior to any impacts from the COVID-19 pandemic.

Lenny Comma, chairman and chief executive officer, said, "Our same-store sales growth during the first seven weeks of the quarter exemplified our strategy of combining compelling bundles at competitive price points with innovation, including the menu addition of Tiny Tacos. Tiny Tacos helped to re-establish our equity in Tacos while delivering a craveable product at a great price.

"As we navigate the COVID-19 pandemic, I am proud of the way our teams in the restaurant, our employees, our franchisees and partners have responded nimbly to the changing occasions of our consumers. We remain committed to operating our restaurants with integrity, providing great guest service, and most importantly, protecting the health and safety of our employees and guests. We are dedicated to remaining open to serve guests during this time of uncertainty.

"Given this uncertainty, we are prioritizing actions to bolster liquidity in the event we encounter greater volatility to our business. Because of this, we have temporarily suspended both share repurchases and the quarterly dividend typically paid next month with the intent to re-evaluate these decisions each quarter as we gain greater clarity on any further negative impact to our business trends."

Results for the second quarter reflect the significant and unprecedented impacts of the COVID-19 pandemic, which primarily impacted the five weeks ended April 12, 2020.

Earnings from continuing operations were $11.5 million, or $0.50 per diluted share, for the second quarter of fiscal 2020 compared with $25.1 million, or $0.96 per diluted share, for the second quarter of fiscal 2019.

Operating Earnings Per Share (1), a non-GAAP measure, were $0.50 in the second quarter of fiscal 2020 compared with $0.99 in the prior year quarter. A reconciliation of non-GAAP Operating Earnings Per Share to GAAP results is provided below, with additional information included in the attachment to this release.

                              12 Weeks Ended                              12 Weeks Ended                            12 Weeks Ended                           28 Weeks Ended                                      28 Weeks Ended
------------------------------------------------------------------------- -------------- --------------------------------------------------------------      -------------- ----------------------------------------------------------------------------------
                                                       April 12, 2020            April 12, 2020            April 14, 2019  April 14, 2019 April 12, 2020            April 12, 2020            April 14, 2019            April 14, 2019
                                                                          -------------- ----------------------------------   -------------- --------------  -------------- ----------------------------------   -------------- ----------------------------------
Diluted earnings per share from continuing operations - GAAP              $       $    0.50                $       $    0.96              $       $    0.82                $       $    2.15  
Restructuring charges                                                     --  --                 0.03           0.03            0.03           0.03            0.03             0.20            0.20  
Gains on the sale of company-operated restaurants                         --  --       -- --  --          (0.05           (0.05 )                             (0.01           (0.01 )
Gain on sale of corporate office building                                 --  --       -- --  --          (0.32           (0.32 )                    --  --
Pension settlement charges                                                          0.01            0.01   --  --           1.14            1.14   --  --
Excess tax benefits from share-based compensation arrangements                     (0.01           (0.01 )                    --  -- --  --       -- --  --
                                                                          -------------- --------------  -------------------- -------------- --------------  -------------- --------------  -------------------- -------------- --------------

Adjusted EBITDA(2), a non-GAAP measure, was $46.3 million in the second quarter of fiscal 2020 compared with $61.2 million for the prior year quarter.

Restaurant-Level Margin(3), a non-GAAP measure, decreased by 700 basis points to 20.6 percent of company restaurant sales in the second quarter of fiscal 2020 from 27.6 percent a year ago. The decrease was due primarily to sales deleverage during COVID-19 impacted weeks and wage and commodity inflation. Food and packaging costs, as a percentage of company restaurant sales, increased 160 basis points in the quarter driven by higher ingredient costs, which were partially offset by menu price increases. Commodity costs increased 4.4 percent in the quarter as compared with the prior year.

Franchise-Level Margin(3), a non-GAAP measure, decreased by $2.7 million in the second quarter, primarily driven by lower royalties and rental revenues as a result of the decline in franchise same-store sales. As previously disclosed, the company provided relief to franchisees within the quarter by postponing collection of April rent payments and reducing and postponing March marketing fees, which are typically collected in April. In addition to previously announced relief, the company also reduced April marketing fees, to a range of 2 to 4 percent of gross restaurant sales based on sales volume, and postponed these fees, which are typically collected in May, to be collected over three months beginning October 2020. This relief did not have any impact on Franchise-Level Margin(3).

Franchise-Level Margin(3), as a percentage of total franchise revenues, was 38.6 percent in the second quarter of fiscal 2020. The company adopted the new lease accounting standard, ASC 842, in fiscal 2020, which resulted in grossing up both franchise rental revenues and franchise occupancy expenses by approximately $9.5 million in the second quarter. Without these adjustments, Franchise-Level Margin(3) would have been 41.4 percent of total franchise revenues. This compares with 41.3 percent in the prior year.

As a percentage of system-wide sales, G&A was 2.7 percent in the second quarter of fiscal 2020 compared with 1.7 percent in the prior year quarter. The $7.0 million increase in G&A, which excludes advertising, was primarily driven by:

mark-to-market adjustments on investments supporting the company's non-qualified retirement plans resulting in a $7.2 million year-over-year increase in G&A; and an increase of $1.9 million related to litigation settlements. These increases were partially offset by a $2.4 million reduction in incentive compensation.

Advertising costs, which are included in SG&A, decreased $0.4 million in the second quarter due primarily to the reduction in marketing fees for March and April. In the second quarter of fiscal 2020, SG&A expenses increased by $6.6 million and were 11.2 percent of revenues compared with 8.2 percent in the prior year quarter.

Impairment and other charges, net, decreased $0.4 million in the second quarter. Restructuring charges, which are included in Impairment and other charges, net, in the accompanying condensed consolidated statements of earnings, decreased $0.8 million in the quarter.

Interest expense, net, increased by $2.1 million in the second quarter driven by higher debt balances.

The effective tax rate for the second quarter of fiscal 2020 was 32.3 percent and was elevated primarily due to the decrease in operating earnings before income tax and an increase in losses from the mark-to-market adjustments associated with investments supporting the company's non-qualified retirement plans. Excluding non-recurring impacts of share-based compensation, pension settlements, and restructuring, the effective tax rate in the second quarter was 33.9 percent.

Capital Allocation and Liquidity Position

The company did not repurchase any shares in the second quarter of fiscal 2020, and as announced on April 15, 2020, temporarily suspended its share repurchase program. This leaves approximately $122 million remaining under share repurchase programs authorized by its Board of Directors, consisting of $22 million remaining that expire in November 2020 and approximately $100 million remaining that expire in November 2021.

In the context of an unprecedented global pandemic, the company believes it is prudent to maintain maximum financial flexibility by preserving its capital and maintaining its healthy liquidity position. In addition to temporarily suspending its share repurchase program, the company announced today that on May 8, 2020, its Board of Directors approved the company's voluntary election to temporarily suspend quarterly dividend payments. The company will continue to monitor and revisit its capital allocation policies throughout the third quarter with the goal of reinstating dividends and share repurchases once it has more clarity around the scope and duration of the disruption caused by COVID-19.

As of the end of the second quarter, the company had approximately $169 million in cash, of which $132 million was unrestricted cash.

Withdrawing Long-Term Guidance

Due to the unprecedented adverse impact of the COVID-19 pandemic on business results, the company is withdrawing its long-term guidance. The company will provide an update when it can reasonably estimate the impacts of the COVID-19 pandemic on business results. As previously announced, the company also withdrew its guidance for the fiscal year ending September 27, 2020.

Conference Call

The company will host a conference call for financial analysts and investors on Thursday, May 14, 2020, 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 Inc. corporate 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 11:30 a.m. PT on May 14, 2020.

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(R) restaurants, one of the nation's largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. For more information on Jack in the Box, including franchising opportunities, visit www.jackinthebox.com.

_____________________________

(1) Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding gains or losses on the sale of company-operated restaurants, restructuring charges, gain on sale of corporate office building, pension settlement charges, and the excess tax benefits from share-based compensation arrangements. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

(2) Adjusted EBITDA represents net earnings on a GAAP basis excluding earnings or losses from discontinued operations, income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, impairment and other charges, net, depreciation and amortization, the amortization of franchise tenant improvement allowances and pension settlement charges. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

(3) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as "anticipate," "believe," "estimate," "expect," "forecast," "goals," "guidance," "intend," "plan," "project," "may," "will," "would" and similar expressions. These statements are based on management's current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the potential impacts to our business and operations resulting from the coronavirus COVID-19 pandemic, the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company's ability to reduce G&A and operate efficiently; the company's ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the company's brand; increased regulatory and legal complexities, including federal, state and local policies regarding mitigation strategies for controlling the coronavirus COVID-19 pandemic, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; adverse investor response to the company's temporary suspension of dividends and its stock repurchase program; and stock market volatility. These and other 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 http://investors.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)
                                                                                                                              
                                                         12 Weeks Ended                                        12 Weeks Ended                                       28 Weeks Ended                                                  28 Weeks Ended
                                                                         -------------------- --------------------------------------------------------------------------------      -------------------- ----------------------------------------------------------------------------------------------------
                                                         April 12, 2020        April 12, 2020       April 14, 2019                  April 14, 2019                  April 12, 2020                  April 12, 2020                  April 14, 2019                  April 14, 2019
                                                                         -------------------- --------------------  -------------------- ----------------------------------------   -------------------- ----------------------------------------   -------------------- ----------------------------------------
Revenues:                                                                                      
                                                                                            $          $     74,380                    $          $     76,682                      $          $    179,744                      $          $    179,514  
     Company restaurant sales
                                                                                       69,885                69,885               61,646                61,646                165,969               165,969                145,536               145,536  
     Franchise rental revenues
                                                                                       37,764                37,764               38,410                38,410                 90,230                90,230                 90,660                90,660  
     Franchise royalties and other
                                                                                       34,128                34,128               38,989                38,989                 87,887                87,887                 90,803                90,803  
     Franchise contributions for advertising and other services
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                   216,157               216,157              215,727               215,727                523,830               523,830                506,513               506,513  
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Operating costs and expenses, net:                                                             
                                                                                               
     Company restaurant costs (excluding depreciation and amortization):
                                                                                       22,237                22,237               21,676                21,676                 53,585                53,585                 51,292                51,292  
          Food and packaging
                                                                                       24,261                24,261               22,768                22,768                 56,151                56,151                 53,042                53,042  
          Payroll and employee benefits
                                                                                       12,570                12,570               11,100                11,100                 28,528                28,528                 27,113                27,113  
          Occupancy and other
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                       59,068                59,068               55,544                55,544                138,264               138,264                131,447               131,447  
               Total company restaurant costs
                                                                                       48,341                48,341               38,618                38,618                112,858               112,858                 89,331                89,331  
     Franchise occupancy expenses
                                                                                        2,971                 2,971                2,797                 2,797                  7,647                 7,647                  5,642                 5,642  
     Franchise support and other costs
                                                                                       35,734                35,734               40,245                40,245                 90,958                90,958                 94,515                94,515  
     Franchise advertising and other services expenses
                                                                                       24,203                24,203               17,585                17,585                 52,451                52,451                 41,668                41,668  
     Selling, general and administrative expenses
                                                                                       12,282                12,282               12,690                12,690                 29,010                29,010                 29,859                29,859  
     Depreciation and amortization
                                                                                          716                   716                1,125                 1,125                 (8,575                (8,575 )                                   8,823                 8,823  
     Impairment and other charges, net
                                                                               --        --       --        --               (1,575               (1,575                (1,575 )                                    (219                  (219 )
     Gains on the sale of company-operated restaurants
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                   183,315               183,315              168,604               168,604                421,038               421,038                401,066               401,066  
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Earnings from operations                                                               32,842                32,842               47,123                47,123                102,792               102,792                105,447               105,447  
Other pension and post-retirement expenses, net                                           512                   512                  343                   343                 39,490                39,490                    799                   799  
Interest expense, net                                                                  15,409                15,409               13,276                13,276                 35,351                35,351                 30,650                30,650  
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Earnings from continuing operations and before income taxes                            16,921                16,921               33,504                33,504                 27,951                27,951                 73,998                73,998  
Income taxes                                                                            5,458                 5,458                8,374                 8,374                  8,591                 8,591                 17,747                17,747  
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Earnings from continuing operations                                                    11,463                11,463               25,130                25,130                 19,360                19,360                 56,251                56,251  
Earnings (losses) from discontinued operations, net of taxes                   --        --                  (41                   (41 )                          --        --                2,936                2,936                 2,936  
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Net earnings                                                                                $          $     11,463                    $          $     25,089                      $          $     19,360                      $          $     59,187  
                                                                         ==================== ========== ========== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ====================
                                                                            
Net earnings per share - basic:                                                                
                                                                                            $          $       0.50                    $          $       0.97                      $          $       0.83                      $          $       2.17  
     Earnings from continuing operations
                                                                               --        --       --        --       --       --        --                 0.11                 0.11                  0.11  
     Earnings from discontinued operations
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Net earnings per share (1)                                                                  $          $       0.50                    $          $       0.97                      $          $       0.83                      $          $       2.28  
                                                                         ==================== ========== ========== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ====================
Net earnings per share - diluted:                                                              
                                                                                            $          $       0.50                    $          $       0.96                      $          $       0.82                      $          $       2.15  
     Earnings from continuing operations
Earnings from discontinued operations                                          --        --       --        --       --       --        --                 0.11                 0.11                  0.11  
                                                                         -------------------- --------------------  -------------------- --------------------  -------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Net earnings per share (1)                                                                  $          $       0.50                    $          $       0.96                      $          $       0.82                      $          $       2.26  
                                                                         ==================== ========== ========== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ====================
Weighted-average shares outstanding:                                                           
                                                                                       22,803                22,803               25,943                25,943                 23,339                23,339                 25,922                25,922  
     Basic
                                                                                       22,895                22,895               26,145                26,145                 23,490                23,490                 26,137                26,137  
     Diluted
                                                                            
Dividends declared per common share                                                         $          $       0.40                    $          $       0.40                      $          $       0.80                      $          $       0.80  
(1) Earnings per share may not add due to rounding. Earnings per share may not add due to rounding.
                                                                                                      JACK IN THE BOX INC. AND SUBSIDIARIES
                                                                                                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                 (In thousands, except share and per share data)
                                                                                                                   (Unaudited)
                                                                                                                           
                                                                                                 April 12, 2020                  April 12, 2020                September 29, 2019              September 29, 2019
                                                                                                                 -------------------- ----------------------------------------   -------------------- ----------------------------------------
                                                     ASSETS                                                                
Current assets:                                                                                                            
                                                                                                                                    $          $    132,161                      $          $    125,536  
     Cash
                                                                                                                               37,023                37,023                 26,025                26,025  
     Restricted cash
                                                                                                                               66,331                66,331                 45,235                45,235  
     Accounts and other receivables, net
                                                                                                                                1,821                 1,821                  1,776                 1,776  
     Inventories
                                                                                                                               18,460                18,460                  9,015                 9,015  
     Prepaid expenses
                                                                                                                                6,186                 6,186                 16,823                16,823  
     Current assets held for sale
                                                                                                                                3,970                 3,970                  2,718                 2,718  
     Other current assets
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                              265,952               265,952                227,128               227,128  
          Total current assets
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Property and equipment:                                                                                                     
                                                                                                                            1,149,656             1,149,656              1,176,241             1,176,241  
     Property and equipment, at cost
                                                                                                                             (793,435              (793,435 )                                (784,307              (784,307 )
     Less accumulated depreciation and amortization
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                              356,221               356,221                391,934               391,934  
          Property and equipment, net
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Other assets:                                                                                                              
                                                                                                                              903,010               903,010         --        --
     Operating lease right-of-use asset
                                                                                                                                  294                   294                    425                   425  
     Intangible assets, net
                                                                                                                               47,161                47,161                 46,747                46,747  
     Goodwill
                                                                                                                               77,410                77,410                 85,564                85,564  
     Deferred tax assets
                                                                                                                              211,205               211,205                206,685               206,685  
     Other assets, net
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                            1,239,080             1,239,080                339,421               339,421  
          Total other assets
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                 $          $  1,861,253                      $          $    958,483  
                                                                                                                 ==================== ========== ========== ==================== ==================== ========== ========== ====================
                        LIABILITIES AND STOCKHOLDERS' DEFICIT                                   
Current liabilities:                                                                                                       
                                                                                                                                    $          $     13,819                      $          $        774  
     Current maturities of long-term debt
                                                                                                                              163,077               163,077         --        --
     Current operating lease liabilities
                                                                                                                               47,867                47,867                 37,066                37,066  
     Accounts payable
                                                                                                                              120,949               120,949                120,083               120,083  
     Accrued liabilities
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                              345,712               345,712                157,923               157,923  
          Total current liabilities
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Long-term liabilities:                                                                                                     
                                                                                                                            1,368,446             1,368,446              1,274,374             1,274,374  
     Long-term debt, net of current maturities
                                                                                                                              781,653               781,653         --        --
     Long-term operating lease liabilities, net of current portion
                                                                                                                              242,368               242,368                263,770               263,770  
     Other long-term liabilities
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                            2,392,467             2,392,467              1,538,144             1,538,144  
          Total long-term liabilities
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Stockholders' deficit:                                                                          
                                                                                                                       --        --       --       --        --
     Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued
                                                                                                                                  823                   823                    822                   822  
     Common stock $0.01 par value, 175,000,000 shares authorized, 82,318,622 and 82,159,002 issued, respectively
                                                                                                                              489,847               489,847                480,322               480,322  
     Capital in excess of par value
                                                                                                                            1,574,930             1,574,930              1,577,034             1,577,034  
     Retained earnings
                                                                                                                             (133,220              (133,220 )                                (140,006              (140,006 )
     Accumulated other comprehensive loss
                                                                                                                           (2,809,306            (2,809,306 )                              (2,655,756            (2,655,756 )
     Treasury stock, at cost, 59,646,773 and 57,760,573 shares, respectively
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                             (876,926              (876,926 )                                (737,584              (737,584 )
          Total stockholders' deficit
                                                                                                                 -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                                 $          $  1,861,253                      $          $    958,483  
                                                                                                                 ==================== ========== ========== ==================== ==================== ========== ========== ====================
                                                                                          JACK IN THE BOX INC. AND SUBSIDIARIES
                                                                                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                               (In thousands) (Unaudited)
                                                                         
                                                                         28 Weeks Ended                                                  28 Weeks Ended
                                                                                         -------------------- ----------------------------------------------------------------------------------------------------
                                                                         April 12, 2020                  April 12, 2020                  April 14, 2019                  April 14, 2019
                                                                                         -------------------- ----------------------------------------   -------------------- ----------------------------------------
Cash flows from operating activities:                                                              
                                                                                                            $          $     19,360                      $          $     59,187  
     Net earnings
                                                                                               --        --                2,936                2,936                 2,936  
     Earnings from discontinued operations
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                       19,360                19,360                 56,251                56,251  
     Earnings from continuing operations
                                                                                                   
     Adjustments to reconcile net earnings to net cash provided by operating activities:
                                                                                                       29,010                29,010                 29,859                29,859  
          Depreciation and amortization
                                                                                                        1,765                 1,765                  1,137                 1,137  
          Amortization of franchise tenant improvement allowances and other
                                                                                                        3,046                 3,046                  1,224                 1,224  
          Deferred finance cost amortization
                                                                                                          (77                   (77 )                                     (47                   (47 )
          Excess tax benefits from share-based compensation arrangements
                                                                                                        6,783                 6,783                  3,955                 3,955  
          Deferred income taxes
                                                                                                        5,865                 5,865                  4,708                 4,708  
          Share-based compensation expense
                                                                                                       39,490                39,490                    799                   799  
          Pension and postretirement expense
                                                                                                        3,150                 3,150                 (1,336                (1,336 )
          Losses (gains) on cash surrender value of company-owned life insurance
                                                                                                       (1,575                (1,575 )                                    (219                  (219 )
          Gains on the sale of company-operated restaurants
                                                                                                      (10,170               (10,170 )                                    (138                  (138 )
          Gains on the disposition of property and equipment, net
                                                                                                      (13,118               (13,118 )                          --        --
          Non-cash operating lease costs
                                                                                                          133                   133                    896                   896  
          Impairment charges and other
                                                                                                   
     Changes in assets and liabilities, excluding acquisitions:
                                                                                                      (22,858               (22,858 )                                 (11,658               (11,658 )
          Accounts and other receivables
                                                                                                           28                    28                    (91                   (91 )
          Inventories
                                                                                                      (10,350               (10,350 )                                   3,701                 3,701  
          Prepaid expenses and other current assets
                                                                                                       20,660                20,660                 (3,904                (3,904 )
          Accounts payable
                                                                                                        1,400                 1,400                 (6,532                (6,532 )
          Accrued liabilities
                                                                                                       (3,582                (3,582 )                                  (3,671                (3,671 )
          Pension and postretirement contributions
                                                                                                       (5,811                (5,811 )                                  (6,697                (6,697 )
          Franchise tenant improvement allowance distributions
                                                                                                       (4,222                (4,222 )                                  (7,421                (7,421 )
          Other
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                       58,927                58,927                 60,816                60,816  
               Cash flows provided by operating activities
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Cash flows from investing activities:                                                              
                                                                                                      (12,777               (12,777 )                                 (18,191               (18,191 )
     Purchases of property and equipment
                                                                                                       22,394                22,394                  1,479                 1,479  
     Proceeds from the sale of property and equipment
                                                                                                       17,373                17,373                  1,944                 1,944  
     Proceeds from the sale and leaseback of assets
                                                                                                        1,575                 1,575                    133                   133  
     Proceeds from the sale of company-operated restaurants
                                                                                               --        --                6,491                6,491                 6,491  
     Collections on notes receivable
                                                                                                        1,036                 1,036         --        --
     Other
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------
                                                                                                       29,601                29,601                 (8,144                (8,144 )
               Cash flows provided by (used in) investing activities
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Cash flows from financing activities:                                                              
                                                                                                      111,376               111,376                189,736               189,736  
     Borrowings on revolving credit facilities
                                                                                                       (3,500                (3,500 )                                (180,800              (180,800 )
     Repayments of borrowings on revolving credit facilities
                                                                                                       (3,640                (3,640 )                                 (21,757               (21,757 )
     Principal repayments on debt
                                                                                                         (216                  (216 )                                  (3,615                (3,615 )
     Debt issuance costs
                                                                                                      (18,466               (18,466 )                                 (20,615               (20,615 )
     Dividends paid on common stock
                                                                                                        3,559                 3,559                    243                   243  
     Proceeds from issuance of common stock
                                                                                                     (155,576              (155,576 )                                 (14,362               (14,362 )
     Repurchases of common stock
                                                                                                       (4,442                (4,442 )                                  (2,617                (2,617 )
     Payroll tax payments for equity award issuances
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
                                                                                                      (70,905               (70,905 )                                 (53,787               (53,787 )
               Cash flows used in financing activities
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Net increase (decrease) in cash and restricted cash                                                    17,623                17,623                 (1,115                (1,115 )
Cash and restricted cash at beginning of period                                                       151,561               151,561                  2,705                 2,705  
                                                                                         -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
Cash and restricted cash at end of period                                                                   $          $    169,184                      $          $      1,590  
                                                                                         ==================== ========== ========== ==================== ==================== ========== ========== ====================

JACK IN THE BOX INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION

The following table presents certain income and expense items included in our condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

                                                                                           CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA
                                                                                                               (Unaudited)
                                                                                              
                                                12 Weeks Ended                            12 Weeks Ended                                                   28 Weeks Ended
                                                                -------------------- ----------------------------------------------------------                          ----------------------------------------------------------
                                                April 12, 2020       April 12, 2020         April 14, 2019         April 12, 2020         April 14, 2019
                                                                -------------------- -------------------                       -------------------                       -------------------                       -------------------
Revenues:                                                                      
                                                                                34.4           34.4 %                 35.5 %             34.3 %                     35.4 %
     Company restaurant sales
                                                                                32.3           32.3 %                 28.6 %             31.7 %                     28.7 %
     Franchise rental revenues
                                                                                17.5           17.5 %                 17.8 %             17.2 %                     17.9 %
     Franchise royalties and other
                                                                                15.8           15.8 %                 18.1 %             16.8 %                     17.9 %
     Franchise contributions for advertising and other services
                                                                -------------------- -------------- -----                      -------------- -----                      ---------- ---------                      -------------- -----
                                                                               100.0          100.0 %                100.0 %            100.0 %                    100.0 %
          Total revenues
                                                                ==================== ============== =====                      ============== =====                      ========== =========                      ============== =====
Operating costs and expenses, net:                                             
                                                                               
     Company restaurant costs:
                                                                                29.9           29.9 %                 28.3 %             29.8 %                     28.6 %
          Food and packaging (1)
                                                                                32.6           32.6 %                 29.7 %             31.2 %                     29.5 %
          Payroll and employee benefits (1)
                                                                                16.9           16.9 %                 14.5 %             15.9 %                     15.1 %
          Occupancy and other (1)
                                                                -------------------- -------------- -----                      -------------- -----                      ---------- ---------                      -------------- -----
                                                                                79.4           79.4 %                 72.4 %             76.9 %                     73.2 %
               Total company restaurant costs (1)
                                                                -------------------- -------------- -----                      -------------- -----                      ---------- ---------                      -------------- -----
                                                                                69.2           69.2 %                 62.6 %             68.0 %                     61.4 %
     Franchise occupancy expenses (2)
                                                                                 7.9            7.9 %                  7.3 %              8.5 %                      6.2 %
     Franchise support and other costs (3)
                                                                               104.7          104.7 %                103.2 %            103.5 %                    104.1 %
     Franchise advertising and other services expenses (4)
                                                                                11.2           11.2 %                  8.2 %             10.0 %                      8.2 %
     Selling, general and administrative expenses
                                                                                 5.7            5.7 %                  5.9 %              5.5 %                      5.9 %
     Depreciation and amortization
                                                                                 0.3            0.3 %                  0.5 %            (1.6) %                      1.7 %
     Impairment and other charges, net
                                                                      -- -- %       -- %            (0.3) %           -- %
     Gains on the sale of company-operated restaurants
Earnings from operations                                                        15.2           15.2 %                 21.8 %             19.6 %                     20.8 %
Income tax rate (5)                                                             32.3           32.3 %                 25.0 %             30.7 %                     24.0 %
(1) As a percentage of company restaurant sales.                                    As a percentage of company restaurant sales.
(2) As a percentage of franchise rental revenues.                                   As a percentage of franchise rental revenues.
(3) As a percentage of franchise royalties and other.                               As a percentage of franchise royalties and other.
(4) As a percentage of franchise contributions for advertising and other services.  As a percentage of franchise contributions for advertising and other services.
(5) As a percentage of earnings from continuing operations and before income taxes. As a percentage of earnings from continuing operations and before income taxes.
Jack in the Box system sales (dollars in thousands):
                                                                                                     
                             12 Weeks Ended                                         12 Weeks Ended                                                                               28 Weeks Ended
                                                                -------------------- ----------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                             April 12, 2020              April 12, 2020                      April 14, 2019                       April 12, 2020                        April 14, 2019
                                                                -------------------- -------------------------------                        -------------------------------                        ---------------------------------                        ---------------------------------
Company-owned restaurant sales  Company-owned restaurant sales                     $    $  74,380        $  76,682        $   179,744        $   179,514  
Franchised restaurant sales (1) Franchised restaurant sales (1)              695,926      695,926          721,350          1,675,271          1,681,310  
                                                                -------------------- -----------  --------------------                      -----------  --------------------                      -------------  --------------------                      -------------  --------------------
System sales (1)                System sales (1)                                   $    $ 770,306        $ 798,032        $ 1,855,015        $ 1,860,824  
                                                                ==================== ==== ======= ====================                      ==== ======= ====================                      ==== ========= ====================                      ==== ========= ====================
(1) Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. System sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and system restaurant sales information is useful to investors as they have a direct effect on the company's profitability. Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. System sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and system restaurant sales information is useful to investors as they have a direct effect on the company's profitability.

The following table summarizes the year-to-date changes in the number and mix of Jack in the Box company and franchise restaurants:

                                                                                                                                                                             SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION
                                                                                                                                                                                              (Unaudited)
                                                                                                                                                  
                    2020                                                                                2020                                                                               2019                 2019                                                                                  2019
                               -------------------- ------------------------------------------------------------------------------------------------------------------------------------------        -------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------
                   Company                      Company                    Franchise                  Franchise                   Total                        Total                      Company              Company                      Company                    Franchise                    Franchise                     Total                        Total
                               -------------------- ----------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
                                                                                                            
Beginning of year                               137            137                  2,106      2,106                  2,243          2,243                    137                  137            137                  2,100          2,100                  2,237          2,237  
                                     -- --                   16                   16         16                     16             16         --       -- --                     11             11                     11             11  
     New
                                                  8              8                     (8         (8 )                          -- --       --       --       -- --         -- --       --       -- --
     Acquired from franchisees
                                                 (1             (1 )                                     (12        (12 )                                     (13            (13 )                          --       -- --                     (8             (8 )                                      (8             (8 )
     Closed
                               -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
End of period                                   144            144                  2,102      2,102                  2,246          2,246                    137                  137            137                  2,103          2,103                  2,240          2,240  
                               ==================== ============== ==================== ==================== ========== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
                                                  6              6 %                                      94         94 %                                     100            100 %                                       6                    6              6 %                                      94             94 %                                     100            100 %
     % of system

JACK IN THE BOX INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS (Unaudited)

To supplement the consolidated financial statements, which are presented in accordance with GAAP, the company uses the following non-GAAP measures: Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin. Management believes that these measurements, when viewed with the company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the company's core business without regard to potential distortions.

Operating Earnings Per Share

Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding gains or losses on the sale of company-operated restaurants, restructuring charges, the gain on sale of corporate office building, pension settlement charges, and the excess tax benefits from share-based compensation arrangements which are now recorded as a component of income tax expense versus equity prior to fiscal year 2019. Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Operating Earnings Per Share provides investors with a meaningful supplement of the company's operating performance and period-over-period changes without regard to potential distortions.

Below is a reconciliation of non-GAAP Operating Earnings Per Share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.

                              12 Weeks Ended                              12 Weeks Ended                            12 Weeks Ended                           28 Weeks Ended                                      28 Weeks Ended
------------------------------------------------------------------------- -------------- --------------------------------------------------------------      -------------- ----------------------------------------------------------------------------------
                                                       April 12, 2020            April 12, 2020            April 14, 2019  April 14, 2019 April 12, 2020            April 12, 2020            April 14, 2019            April 14, 2019
                                                                          -------------- ----------------------------------   -------------- --------------  -------------- ----------------------------------   -------------- ----------------------------------
Diluted earnings per share from continuing operations - GAAP              $       $    0.50                $       $    0.96              $       $    0.82                $       $    2.15  
Restructuring charges                                                     --  --                 0.03           0.03            0.03           0.03            0.03             0.20            0.20  
Gains on the sale of company-operated restaurants                         --  --       -- --  --          (0.05           (0.05 )                             (0.01           (0.01 )
Gain on sale of corporate office building                                 --  --       -- --  --          (0.32           (0.32 )                    --  --
Pension settlement charges                                                          0.01            0.01   --  --           1.14            1.14   --  --
Excess tax benefits from share-based compensation arrangements                     (0.01           (0.01 )                    --  -- --  --       -- --  --
                                                                          -------------- --------------  -------------------- -------------- --------------  -------------- --------------  -------------------- -------------- --------------
                                                                                       $       $    0.50                $       $    0.99              $       $    1.62                $       $    2.34  
     Operating earnings per share - non-GAAP
                                                                          ============== ======= ======= ==================== ============== ======= ======= ============== ======= ======= ==================== ============== ======= ======= ====================

Adjusted EBITDA

Adjusted EBITDA represents net earnings on a GAAP basis excluding earnings or losses from discontinued operations, income taxes, interest expense, net, pension settlement charges, gains or losses on the sale of company-operated restaurants, impairment and other charges, net, depreciation and amortization, and the amortization of franchise tenant improvement allowances and other. Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Adjusted EBITDA is useful to investors to gain an understanding of the factors and trends affecting the company's ongoing cash earnings, from which capital investments are made and debt is serviced.

Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings (in thousands).

                            12 Weeks Ended                             12 Weeks Ended                 12 Weeks Ended                 28 Weeks Ended                                      28 Weeks Ended
---------------------------------------------------------------------- -------------- ------------------------------------------     -------------- ----------------------------------------------------------------------------------
                                                    April 12, 2020  April 12, 2020 April 14, 2019  April 14, 2019 April 12, 2020            April 12, 2020            April 14, 2019            April 14, 2019
                                                                       -------------- --------------  -------------- --------------  -------------- ----------------------------------   -------------- ----------------------------------
Net earnings - GAAP                                                                 $       $  11,463              $       $  25,089              $       $  19,360                $       $  59,187  
                                                                       --  --             41              41 --  --               (2,936         (2,936          (2,936 )
     Losses (earnings) from discontinued operations, net of taxes
                                                                                5,458           5,458          8,374           8,374          8,591           8,591           17,747          17,747  
     Income taxes
                                                                               15,409          15,409         13,276          13,276         35,351          35,351           30,650          30,650  
     Interest expense, net
                                                                                  321             321 --  --         38,927          38,927   --  --
     Pension settlement charges
                                                                       --  -- --  --         (1,575          (1,575 )                              (219            (219 )
     Gains on the sale of company-operated restaurants
                                                                                  716             716          1,125           1,125         (8,575          (8,575 )                             8,823           8,823  
     Impairment and other charges, net
                                                                               12,282          12,282         12,690          12,690         29,010          29,010           29,859          29,859  
     Depreciation and amortization
                                                                                  614             614            607             607          1,765           1,765            1,137           1,137  
     Amortization of franchise tenant improvement allowances and other
                                                                       -------------- --------------  -------------- --------------  -------------- --------------  -------------------- -------------- --------------  --------------------
Adjusted EBITDA - non-GAAP                                             $       $  46,263              $       $  61,202              $       $ 122,854                $       $ 144,248  
                                                                       ============== ======= ======= ============== ======= ======= ============== ======= ======= ==================== ============== ======= ======= ====================

Restaurant-Level Margin

Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, impairment and other charges, net, gains or losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs. As such, Restaurant-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-owned restaurants.

Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings from operations (in thousands):

                         12 Weeks Ended                            12 Weeks Ended                                                                       12 Weeks Ended                                                                       28 Weeks Ended                                                               28 Weeks Ended
--------------------------------------------------------------- -------------------- --------------------------------------------------------------------------------------------------------------------------------------------         -------------------- ----------------------------------------------------------------------------------------------------------------------------
                                                April 12, 2020                             April 12, 2020                                                                                                                 April 12, 2020                         April 12, 2020                        April 14, 2019                         April 14, 2019
                                                                                                                                                         April 14, 2019                             April 14, 2019
                                                                -------------------- ------------------------------------------------------------    -------------------- ------------------------------------------------------------    -------------------- ----------------------------------------------------    -------------------- ----------------------------------------------------
Earnings from operations - GAAP                                                    $          $     32,842                        $          $     47,123                        $     $ 102,792                        $     $ 105,447    
                                                                             (69,885               (69,885 )                                   (61,646               (61,646 )                                  (165,969      (165,969 )                                  (145,536      (145,536 )                     
     Franchise rental revenues
                                                                             (37,764               (37,764 )                                   (38,410               (38,410 )                                   (90,230       (90,230 )                                   (90,660       (90,660 )                     
     Franchise royalties and other
                                                                             (34,128               (34,128 )                                   (38,989               (38,989 )                                   (87,887       (87,887 )                                   (90,803       (90,803 )                     
     Franchise contributions for advertising and other services
                                                                              48,341                48,341                   38,618                38,618                  112,858       112,858                   89,331        89,331    
     Franchise occupancy expenses
                                                                               2,971                 2,971                    2,797                 2,797                    7,647         7,647                    5,642         5,642    
     Franchise support and other costs
                                                                              35,734                35,734                   40,245                40,245                   90,958        90,958                   94,515        94,515    
     Franchise advertising and other services expenses
                                                                              24,203                24,203                   17,585                17,585                   52,451        52,451                   41,668        41,668    
     Selling, general and administrative expenses
                                                                                 716                   716                    1,125                 1,125                   (8,575        (8,575 )                                     8,823         8,823    
     Impairment and other charges, net
                                                                      --        --           --        --                   (1,575        (1,575 )                                      (219          (219 )                     
     Gains on the sale of company-operated restaurants
                                                                              12,282                12,282                   12,690                12,690                   29,010        29,010                   29,859        29,859    
     Depreciation and amortization
                                                                -------------------- --------------------  -------------------- -------------------- -------------------- --------------------  -------------------- -------------------- -------------------- ------------  -------------------- -------------------- -------------------- ------------  -------------------- --------------------
Restaurant-Level Margin- Non-GAAP                                                  $          $     15,312                        $          $     21,138                        $     $  41,480                        $     $  48,067    
                                                                ==================== ========== ========== ==================== ==================== ==================== ========== ========== ==================== ==================== ==================== ===== ======= ==================== ==================== ==================== ===== ======= ==================== ====================
                                                                                                                                               
Company restaurant sales                                                           $          $     74,380                        $          $     76,682                        $     $ 179,744                        $     $ 179,514    
                                                                                                                                               
Restaurant-Level Margin % - Non-GAAP                                            20.6                  20.6   %                                    27.6                  27.6   %                                    23.1          23.1   %                                    26.8          26.8   %

Franchise-Level Margin

Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, impairment and other charges, net, and other costs that are considered normal operating costs. As such, Franchise-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations.

Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from operations (in thousands):

                      12 Weeks Ended                          12 Weeks Ended                                                                       12 Weeks Ended                                                                       28 Weeks Ended                                                               28 Weeks Ended
---------------------------------------------------------- -------------------- --------------------------------------------------------------------------------------------------------------------------------------------         -------------------- ----------------------------------------------------------------------------------------------------------------------------
                                           April 12, 2020                             April 12, 2020                          April 14, 2019 (1)                         April 14, 2019 (1)                          April 12, 2020                         April 12, 2020                      April 14, 2019 (1)                     April 14, 2019 (1)
                                                           -------------------- ------------------------------------------------------------    -------------------- ------------------------------------------------------------    -------------------- ----------------------------------------------------    -------------------- ----------------------------------------------------
Earnings from operations - GAAP                                               $          $     32,842                        $          $     47,123                        $     $ 102,792                        $     $ 105,447    
                                                                        (74,380               (74,380 )                                   (76,682               (76,682 )                                  (179,744      (179,744 )                                  (179,514      (179,514 )                     
     Company restaurant sales
                                                                         22,237                22,237                   21,676                21,676                   53,585        53,585                   51,292        51,292    
     Food and packaging
                                                                         24,261                24,261                   22,768                22,768                   56,151        56,151                   53,042        53,042    
     Payroll and employee benefits
                                                                         12,570                12,570                   11,100                11,100                   28,528        28,528                   27,113        27,113    
     Occupancy and other
                                                                         24,203                24,203                   17,585                17,585                   52,451        52,451                   41,668        41,668    
     Selling, general and administrative expenses
                                                                            716                   716                    1,125                 1,125                   (8,575        (8,575 )                                     8,823         8,823    
     Impairment and other charges, net
                                                                 --        --           --        --                   (1,575        (1,575 )                                      (219          (219 )                     
     Gains on the sale of company-operated restaurants
                                                                         12,282                12,282                   12,690                12,690                   29,010        29,010                   29,859        29,859    
     Depreciation and amortization
                                                           -------------------- --------------------  -------------------- -------------------- -------------------- --------------------  -------------------- -------------------- -------------------- ------------  -------------------- -------------------- -------------------- ------------  -------------------- --------------------
Franchise-Level Margin - Non-GAAP                                             $          $     54,731                        $          $     57,385                        $     $ 132,623                        $     $ 137,511    
                                                           ==================== ========== ========== ==================== ==================== ==================== ========== ========== ==================== ==================== ==================== ===== ======= ==================== ==================== ==================== ===== ======= ==================== ====================
                                                                                                                                          
Franchise rental revenues                                                     $          $     69,885                        $          $     61,646                        $     $ 165,969                        $     $ 145,536    
Franchise royalties and other                                            37,764                37,764                   38,410                38,410                   90,230        90,230                   90,660        90,660    
Franchise contributions for advertising and other services               34,128                34,128                   38,989                38,989                   87,887        87,887                   90,803        90,803    
                                                           -------------------- --------------------  -------------------- -------------------- -------------------- --------------------  -------------------- -------------------- -------------------- ------------  -------------------- -------------------- -------------------- ------------  -------------------- --------------------
Total franchise revenues                                                      $          $    141,777                        $          $    139,045                        $     $ 344,086                        $     $ 326,999    
                                                           ==================== ========== ========== ==================== ==================== ==================== ========== ========== ==================== ==================== ==================== ===== ======= ==================== ==================== ==================== ===== ======= ==================== ====================
                                                                                                                                          
Franchise-Level Margin % - Non-GAAP                                        38.6                  38.6   %                                    41.3                  41.3   %                                    38.5          38.5   %                                    42.1          42.1   %
(1) During the first quarter of 2020, the Company changed its presentation of Non-GAAP Franchise-Level Margin to include "amortization of franchise tenant improvement allowances and other" in its definition thereof. The prior period has been recast to conform to current year presentation. During the first quarter of 2020, the Company changed its presentation of Non-GAAP Franchise-Level Margin to include "amortization of franchise tenant improvement allowances and other" in its definition thereof. The prior period has been recast to conform to current year presentation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200513005738/en/

SOURCE: Jack in the Box Inc.

Investor Contact: 
Rachel Webb, (858) 571-2683

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