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Whole Foods Market Reports Fourth Quarter Results

Whole Foods Market Reports Fourth Quarter Results

Comparable Store Sales Increase 8.5%; Company Produces $0.60 in Earnings Per
Share, Maintains Fiscal Year 2013 EPS Guidance, and Raises Quarterly Dividend
43% to $0.20 per Share

AUSTIN, Texas, Nov. 7, 2012 (GLOBE NEWSWIRE) -- Whole Foods Market, Inc.
(Nasdaq:WFM) today reported results for the 13-week fourth quarter ended
September 30, 2012. Year-over-year increases stated herein reflect the
comparison of 13 weeks in fiscal year 2012 to 12 weeks in fiscal year 2011.
Sales increased 24% to $2.9 billion.Comparable store sales increased 8.5%,
and identical store sales, excluding three relocations and two expansions,
increased 8.3%. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") increased 36% from the prior year to $252.2 million,
net income increased 49% to $112.7 million, and diluted earnings per share
increased 44% to $0.60.

"We ended the year with strong sales growth and record fourth quarter results,
delivering the best year in our Company's 32-year history," said John Mackey,
co-founder and co-chief executive officer of Whole Foods Market. "The pace of
new store openings and lease signings continues to increase, and our
accelerated growth plans are on track.We expect healthy comparable store
sales growth and continuing operating margin improvement in fiscal year 2013."

The following table shows the Company's comparable and identical store sales
results for the last five quarters and for the first five weeks of the first
quarter through November 4, 2012.Sales growth for the fourth quarter of
fiscal year 2012 is presented on a 12-week to 12-week basis.

                                                               
                      4Q11      1Q12     2Q12*    3Q12*    4Q12     QTD
                                                                     1Q13**
Sales growth           12.2%     12.9%    13.6%    13.6%    14.1%    12.5%
                                                               
Comparable store sales 8.7%      8.7%     9.5%     8.2%     8.5%     7.3%
growth
Two-year comps         17.4%     17.7%    17.3%    16.6%    17.3%    15.9%
                                                               
Identical store sales  8.4%      8.2%     9.0%     8.0%     8.3%     7.1%
growth
Two-year idents        17.1%     17.3%    16.8%    16.1%    16.7%    15.3%
Sequential basis point 53        24       (48)     (75)     64       
change
Three-year idents      14.8%     19.8%    24.5%    24.5%    25.4%    24.2%
Sequential basis point 206       502      472      (2)      90       
change
                                                               
*Comparable and identical store sales growth includes a positive 55 basis
point impact in 2Q12 and a negative 62 basis point impact in 3Q12 from the
Easter shift, calculated by excluding Easter week from both the current and
prior years.
**Comparable and identical store sales growth reflects a negative impact from
Hurricane Sandy.

Hurricane Sandy negatively impacted sales for the first five weeks of the
first quarter, particularly in the Northeast region. The Company has
property, flood, casualty, and business interruption insurance coverage and
has just started the process of working with its insurer to assess damages, a
process that could take several months. The Company expects to record a
one-time charge in the first quarter for estimated uninsured losses.

For the quarter, gross profit increased 76 basis points to 35.3% of sales
driven by improvements in both cost of goods sold and occupancy costs as a
percentage of sales.The LIFO credit was $1.9 million this year versus a
charge of $3.8 million in the prior year, a positive impact of 22 basis
points.Direct store expenses improved 40 basis points to 25.5% of sales due
primarily to leverage in wages and depreciation as a percentage of sales. As
a result, store contribution improved 117 basis points to 9.8% of sales.

For stores in the identical store base, gross profit improved 84 basis points
to 35.3% of sales, direct store expenses improved 64 basis points to 25.2% of
sales, and store contribution improved 148 basis points to 10.1% of sales.

The effective tax rate was 36.4%, in line with the prior year but below the
Company's year-to-date average in the third quarter of 38.6% due to an
increase in state tax credits, along with a one-time reduction of reserves for
tax positions related to a prior acquisition.

During the quarter, the Company produced $188.8 million in cash flow from
operations and invested $130.3 million in capital expenditures, of which $72.9
million related to new stores.This resulted in free cash flow of $58.6
million.In addition, the Company received $45.0 million in proceeds from the
exercise of team member stock options and paid $25.8 million in dividends to
shareholders.

Additional information on the quarter for comparable stores and all stores is
provided in the following table.

                                                              
                                            # of              Total
Comparable Stores                  Comps ROIC Stores Average Size Square Feet
Over 15 years old (19 years old,    6.4%  137% 72     27,400       1,971,400
s.f. weighted)
Between 11 and 15 years old         8.2%  79%  73     32,000       2,337,500
Between eight and 11 years old      5.9%  85%  43     37,200       1,600,700
Between five and eight years old    8.0%  47%  53     50,700       2,687,300
Between two and five years old      11.4% 19%  51     49,700       2,533,500
Less than two years old (including  15.9% 16%  19     38,700       734,900
three relocations)
                                                              
All comparable stores (9.3 years    8.4%  52%  311    38,200       11,865,300
old, s.f. weighted)
All stores (8.7 years old, s.f.          44%  335    38,000       12,735,100
weighted)

Fiscal Year Results

For the 53 weeks ended September 30, 2012, sales increased 16% to $11.7
billion, comparable store sales increased 8.7%, and identical store sales,
excluding seven relocations and three expansions, increased 8.4%.EBITDA
increased 26% to $1.1 billion, net income increased 36% to $465.6 million, and
diluted earnings per share increased 31% to $2.52.

For the fiscal year, the Company produced $919.7 million in cash flow from
operations and invested $456.2 million in capital expenditures, of which
$261.7 million related to new stores.This resulted in free cash flow of
$463.5 million.In addition, the Company received $370.2 million in proceeds
from the exercise of team member stock options, paid $94.5 million in
dividends to shareholders, and repurchased $28.6 million of common stock.

The Company finished the year with total cash and cash equivalents, restricted
cash, and investments of $1.5 billion, a year-over-year increase of $745.4
million.Total debt (capital lease obligations) was $24.1 million.

The Company today announced that its Board of Directors declared a 43%
increase in the Company's quarterly dividend to $0.20 per share from $0.14 per
share.The next dividend is payable on January 29, 2013 to shareholders of
record as of January 18, 2013.

"The Board's decision to increase our dividend for the second consecutive year
reflects another year of record-setting financial performance, and underscores
our confidence in our future growth and cash flow generation," said Walter
Robb, co-chief executive officer of Whole Foods Market."With $1.3 billion in
available cash, we expect to continue to internally fund our accelerated new
store growth, maintain a healthy reserve, and create additional value for our
shareholders through selective share repurchases and a higher dividend."

The following table shows the Company's results for the fiscal year for
certain line items compared to its historical five-year ranges and
averages.Fiscal year 2012 sales growth is presented on a 52-week to 52-week
basis.

                                                                    
                                            FY07-FY11 Results        
                                            Low      High     Average FY12
Sales growth                                 1.0%     23.6%    12.8%   13.5%
Comparable store sales growth                -3.1%    8.5%     4.9%    8.7%
Identical store sales growth                 -4.3%    8.4%     4.0%    8.4%
Ending square footage growth                 5.3%     46.0%    14.1%   7.6%
Percent of sales from new & relocated stores 4.2%     8.8%     6.4%    5.4%
                                                                   
Gross profit                                 34.0%    35.0%    34.6%   35.5%
Direct store expenses                        26.0%    26.7%    26.3%   25.5%
Store contribution                           7.5%     9.0%     8.3%    10.0%
G&A expenses                                 3.0%     3.4%     3.2%    3.2%

Growth and Development

The Company opened seven stores in the fourth quarter and has opened seven
stores so far in the first quarter.The Company expects to open three
additional stores in the first quarter.The Company currently has 342 stores
totaling approximately 13.0 million square feet.

The Company recently signed 11 new leases averaging 37,500 square feet in size
in Altamonte Springs, FL; Clearwater, FL; Hyannis, MA; North Carolina;
Morristown, NJ; New York City, NY (two stores); Philadelphia, PA; South Hills,
PA; Dallas, TX; and Seattle, WA. These stores currently are scheduled to open
in fiscal year 2014 and beyond.

In addition, the Company recently announced plans to purchase six leases from
Johnnie's Foodmaster, expanding its presence in the Greater Boston area to 26
stores.The six leases include South Weymouth, Arlington, Charlestown,
Brookline, Melrose and Somerville and average 31,000 square feet in
size.Johnnie's Foodmaster will close the stores prior to the November 30
transaction closing date.The Company plans to remodel and reopen the
locations as Whole Foods Market stores before the end of September 2013.The
Company does not expect this transaction to be material to sales or earnings
in fiscal year 2013.

The following table provides additional information about the Company's store
openings in fiscal years 2011, 2012 and 2013 year to date; leases currently
tendered but unopened; and total development pipeline (including leases
currently tendered) for stores scheduled to open through fiscal year 2016.

                                                                
                                Stores   Stores   Stores   Current  Current
                                Opened   Opened   Opened   Leases   Leases
New Store Information            FY11     FY12     FY13 YTD Tendered Signed*
Number of stores (including      18       25       7        12       79
relocations)
Number of relocations            6        1        0        4        10
Number of lease acquisitions,    2        0        0        2        9
ground leases,
and owned properties                                             
New markets                      0        8        4        4        18
Average store size (gross square 39,400   35,500   33,500   37,600   36,600
feet)
Total square footage             708,700  887,400  234,800  450,800  2,896,300
Average tender period in months  12.5     7.9      5.9              
Average pre-opening expense per  $2.5 mil $1.7 mil                 
store (incl. rent)
Average pre-opening rent per     $1.2 mil $0.6 mil                 
store
                                                                
*Includes six Johnnie's                                          
Foodmaster leases.

Outlook for Fiscal Year 2013

The following table provides information on the Company's estimated and actual
results for fiscal year 2012, a 53-week year, as well as additional
information about the Company's outlook for fiscal year 2013.The Company's
outlook for fiscal year 2013 includes the recently announced acquisition of
six leases from Johnnie's Foodmaster which is scheduled to close on November
30, 2012.It does not include the one-time charge the Company expects to
record in the first quarter for Hurricane Sandy.On a 52-week to 52-week
basis, the Company expects sales growth of 12% to 14%, comparable store sales
growth of 6.5% to 8.5%, identical store sales growth of 6.0% to 8.0%, and
diluted earnings per share growth of 14% to 16% to $2.83 to $2.87.

                                                         
                               FY12 (E)         FY12 (A)   FY13
                               53 Weeks         53 Weeks   52-Week Outlook
Sales growth                    15.6% - 15.8%    15.7%      10% - 12%*
Comparable store sales growth   8.6% - 8.8%      8.7%       6.5% - 8.5%
Two-year comps                  17.1% - 17.3%    17.3%      15.2% - 17.2%
Identical store sales growth    8.2% - 8.4%      8.4%       6.0% - 8.0%
Two-year idents                 16.6% - 16.8%    16.7%      14.4% - 16.4%
Three-year idents               23.1% - 23.3%    23.3%      22.7% - 24.7%
                                                         
Number of new stores            25               25         32 - 34
% of sales from new stores      5% - 6%          5.4%       6% - 7%
Ending square footage growth    7%               7.6%       8%
                                                         
G&A expenses                    3.2%             3.2%       3.1%
Pre-opening and relocation      $54.5 -- $56 mil $56.8 mil  $68 -- $73 mil
costs
Operating margin                6.4%             6.4%       6.6% - 6.7%
EBITDA                          $1.05 -- $1.06   $1.06 bil  $1.18 -- $1.20 bil
                                bil
                                                         
Tax rate                        38.6%            38.1%      38.6% - 39.0%
Diluted shares outstanding      185 mil          184 mil    188 mil
                                                         
Diluted EPS                     $2.51 -- $2.52   $2.52      $2.83 -- $2.87
YOY % change                    30% - 31%        31%        12% - 14%*
                                                         
Capital expenditures            $440 -- $450 mil $456.2 mil $565 -- $615 mil
                                                         
*On a 52-week to 52-week basis:                           
Sales growth                    13% - 14%        13.5%      12% - 14%
Diluted EPS growth              27%              28.2%      14% - 16%

The following table provides information about the Company's estimated store
openings through fiscal year 2014.

                                       Average SquareFeet          Ending
          Estimated     Relocations   per   Square
           Openings                    Store                        Footage
                                                                    Growth
Fiscal     32 - 34       5            34,000                      8%
year 2013
Fiscal     33 - 38       2-3          38,000                      8% - 9%
year 2014

Over the long term, the Company considers 1,000 stores to be a reasonable
indication of its market opportunity in the United States as the Whole Foods
Market brand continues to strengthen, consumer demand for natural and organic
products continues to increase, and the Company's flexibility on new store
size opens up additional market opportunities.The Company believes Canada and
the United Kingdom hold great promise as well.

About Whole Foods Market

Founded in 1980 in Austin, Texas, Whole Foods Market
(www.wholefoodsmarket.com) is the leading retailer of natural and organic
foods and America's first national "Certified Organic" grocer.In fiscal year
2012, the Company had sales of approximately $12 billion and currently has 342
stores in the United States, Canada, and the United Kingdom.Whole Foods
Market employs approximately 73,000 Team Members and has been ranked for 15
consecutive years as one of the "100 Best Companies to Work For" in America by
Fortune magazine.

The Whole Foods Market, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6063

Forward-looking statements

The following constitutes a "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995. Except for the historical
information contained herein, the matters discussed in this press release are
forward-looking statements that involve risks and uncertainties, which could
cause our actual results to differ materially from those described in the
forward-looking statements. These risks include general business conditions,
changes in overall economic conditions that impact consumer spending,
including fuel prices and housing market trends, the impact of competition and
other risks detailed from time to time in the SEC reports of Whole Foods
Market, including Whole Foods Market's report on Form 10-K for the fiscal year
ended September 25, 2011. Whole Foods Market undertakes no obligation to
update forward-looking statements.

The Company will host a conference call today to discuss this earnings
announcement at 4:00 p.m. CT. The dial-in number is (866) 952-1906, and the
conference ID is "Whole Foods." A simultaneous audio webcast will be
available at www.wholefoodsmarket.com.

Whole Foods Market, Inc.
Consolidated Statements of Operations (unaudited)
(In thousands, except per share amounts)
                                                            
                  13-weeks ended 12-weeks ended 53-weeks ended 52-weeks ended
                  September 30,  September 25,  September 30,  September 25,
                   2012           2011           2012           2011
Sales              $2,910,327   $2,353,833   $11,698,828  $10,107,787
Cost of goods sold
and occupancy      1,883,747     1,541,521     7,543,054     6,571,238
costs
Gross profit       1,026,580      812,312        4,155,774      3,536,549
Direct store       740,806       608,618       2,983,419     2,628,811
expenses
Store contribution 285,774       203,694       1,172,355     907,738
General and
administrative     94,350        73,675        372,065       310,920
expenses
Operating income
before pre-opening 191,424       130,019       800,290       596,818
and store closure
Pre-opening        14,001        10,885        46,899        40,852
expenses
Relocation, store
closure and lease  1,826         1,826         9,885         8,346
termination costs
Operating income   175,597       117,308       743,506       547,620
Investment and
other income, net  1,786         1,443         8,538         4,092
of interest
Income before      177,383       118,751       752,044       551,712
income taxes
Provision for      64,651        43,276        286,471       209,100
income taxes
Net income         $112,732     $75,475      $465,573     $342,612
                                                            
Basic earnings per $0.61        $0.42        $2.55        $1.96
share
Weighted average   184,957       177,767       182,401       175,221
shares outstanding
                                                            
Diluted earnings   $0.60        $0.42        $2.52        $1.93
per share
Weighted average
shares             186,518       179,832       184,444       177,279
outstanding,
diluted basis
                                                            
Dividends declared $0.14        $0.10        $0.56        $0.40
per common share
                                                            
A reconciliation of the numerators and denominators of the basic and diluted
earnings per share calculations follows:
                                                            
                  13-weeks ended 12-weeks ended 53-weeks ended 52-weeks ended
                  September 30,  September 25,  September 30,  September 25,
                   2012           2011           2012           2011
Net income                                                   
(numerator for
basic and diluted  $112,732     $75,475      $465,573     $342,612
earnings per
share)
                                                            
Weighted average
common shares      184,962       177,767       182,406       175,221
outstanding
Less: Unvested     (5)           --           (5)           --
restricted stock
Weighted average
common shares
outstanding        184,957       177,767       182,401       175,221
(denominator for
basic earnings per
share)
Potential common
shares                                                       
outstanding:
Dilutive impact of 2             --           1             --
restricted stock
Incremental shares
from assumed       1,559         2,065         2,042         2,058
exercise of stock
options
Weighted average
common shares
outstanding and
potential
additional common  186,518       179,832       184,444       177,279
shares outstanding
(denominator for
diluted earnings
per share)
                                                            
Basic earnings per $0.61        $0.42        $2.55        $1.96
share
Diluted earnings   $0.60        $0.42        $2.52        $1.93
per share


Whole Foods Market, Inc.
Consolidated Balance Sheets (unaudited)
September 30, 2012 and September 25, 2011
(In thousands)
                                                                
                                                                
Assets                                               2012         2011
Current assets:                                                  
Cash and cash equivalents                            $89,016    $212,004
Short-term investments - available-for-sale          1,131,213   442,320
securities
Restricted cash                                      102,873     91,956
Accounts receivable                                  196,503     175,310
Merchandise inventories                              374,269     336,799
Prepaid expenses and other current assets            76,511      73,579
Deferred income taxes                                132,246     121,176
Total current assets                                 2,102,631   1,453,144
Property and equipment, net of accumulated           2,192,683   1,997,212
depreciation and amortization
Long-term investments - available-for-sale           221,426     52,815
securities
Goodwill                                             662,938     662,938
Intangible assets, net of accumulated amortization   62,399      67,234
Deferred income taxes                                42,834      50,148
Other assets                                         9,305       8,584
Total assets                                         $5,294,216 $4,292,075
                                                                
Liabilities And Shareholders' Equity                             
Current liabilities:                                             
Current installments of capital lease obligations    $1,012     $466
Accounts payable                                     247,089     236,913
Accrued payroll, bonus and other benefits due team   307,164     281,587
members
Dividends payable                                    25,959      17,827
Other current liabilities                            395,964     342,568
Total current liabilities                            977,188     879,361
Long-term capital lease obligations, less current    23,110      17,439
installments
Deferred lease liabilities                           440,822     353,776
Other long-term liabilities                          50,627      50,194
Total liabilities                                    1,491,747   1,300,770
                                                                
Shareholders' equity:                                            
Common stock, no par value, 600,000 and 300,000
shares authorized; 185,783 and 178,886 shares        2,592,369   2,120,972
issued; and 185,437 and 178,886 shares outstanding
in 2012 and 2011, respectively
Common stock in treasury, at cost                    (28,599)    --
Accumulated other comprehensive income (loss)        5,266       (164)
Retained earnings                                    1,233,433   870,497
Total shareholders' equity                           3,802,469   2,991,305
Commitments and contingencies                                    
Total liabilities and shareholders' equity           $5,294,216 $4,292,075


Whole Foods Market, Inc.
Consolidated Statements of Cash Flows (unaudited)
(In thousands)
                                                          
                                        53-weeks ended     52-weeks ended
                                        September 30, 2012 September 25, 2011
Cash flows from operating activities                       
Net income                               $465,573         $342,612
Adjustments to reconcile net income to net cash provided by 
operating activities:
Depreciation and amortization            311,550            287,109
Loss on disposition of fixed assets      2,223              2,228
Share-based payment expense              42,288             27,259
LIFO expense                             100                10,250
Deferred income tax expense (benefit)    (8,039)            19,540
Excess tax benefit related to exercise   (50,349)           (22,741)
of team member stock options
Accretion of premium/discount on         15,710             6,164
marketable securities
Deferred lease liabilities               77,044             53,381
Other                                    (1,695)            866
Net change in current assets and                           
liabilities:
Accounts receivable                      (29,879)           (35,422)
Merchandise inventories                  (37,075)           (23,267)
Prepaid expenses and other current       (1,779)            (18,987)
assets
Accounts payable                         9,606              23,768
Accrued payroll, bonus and other         25,285             37,204
benefits due team members
Other current liabilities                94,918             53,831
Net change in other long-term            4,234              (8,950)
liabilities
Net cash provided by operating           919,715            754,845
activities
Cash flows from investing activities                       
Development costs of new locations       (261,710)          (203,457)
Other property and equipment             (194,539)          (161,507)
expenditures
Purchase of available-for-sale           (3,009,503)        (1,228,920)
securities
Sale of available-for-sale securities    2,138,221          1,155,795
Increase in restricted cash              (10,917)           (5,154)
Other investing activities               (2,901)            (7,481)
Net cash used in investing activities    (1,341,349)        (450,724)
Cash flows from financing activities                       
Common stock dividends paid              (94,505)           (52,620)
Issuance of common stock                 370,226            296,719
Purchase of treasury stock               (28,599)           --
Excess tax benefit related to exercise   50,349             22,741
of team member stock options
Payments on long-term debt and capital   (305)              (490,394)
lease obligations
Net cash provided by (used in) financing 297,166            (223,554)
activities
Effect of exchange rate changes on cash  1,480              (559)
and cash equivalents
Net change in cash and cash equivalents  (122,988)          80,008
Cash and cash equivalents at beginning   212,004            131,996
of period
Cash and cash equivalents at end of      $89,016          $212,004
period
                                                          
Supplemental disclosure of cash flow                       
information:
Interest paid                            $2,839           $15,837
Federal and state income taxes paid      $201,771         $192,485


Whole Foods Market, Inc.
Non-GAAP Financial Measures (unaudited)
(In thousands)
                                                            
The Company provides certain non-GAAP financial measures when those measures
provide useful information to management, analysts and investors regarding
certain additional financial and business trends relating to its results of
operations and financial condition. These measures are not in accordance with,
or an alternative to, GAAP. Since the fourth quarter and fiscal year ended
September 30, 2012 contained an additional week, our operating results are not
directly comparable to the prior year. We believe adjusting the reported
results for the 13-week and 53-week periods ended September 30, 2012 provides
more comparable results quarter-over-quarter and year-over-year. For that
reason, the Company reported sales growth and diluted EPS growth on 12-week
and 52-week bases. The Company adjusted the 13-week and 53-week periods by
removing one-thirteenth of the 13-week period results to remove the
estimatedimpact of the additional week in the current year, as shown below.
                                                            
                                                            
                13-weeks ended  12-weeks ended  53-weeks ended 52-weeks ended
                September 30,   September 25,   September 30,  September 25,
                 2012            2011            2012           2011
Sales            $2,910,327    $2,353,833    $11,698,828  $10,107,787
Less: 1/13 of Q4 223,871        --             223,871       --
sales
Sales adjusted
to 12-week       $2,686,456    $2,353,833    $11,474,957  $10,107,787
quarter &
52-week year
                                                            
Net income       $112,732      $75,475       $465,573     $342,612
Less: 1/13 of Q4 8,672          --             8,672         --
net income
Net income
adjusted to      $104,060      $75,475       $456,901     $342,612
12-week quarter
& 52-week year
                                                            
Basic earnings
per share, as    $0.61         $0.42         $2.55        $1.96
reported
Basic earnings
per share,       $0.56         $0.42         $2.50        $1.96
adjusted
Weighted average
shares           184,957        177,767        182,401       175,221
outstanding
                                                            
Diluted earnings
per share, as    $0.60         $0.42         $2.52        $1.93
reported
Diluted earnings
per share,       $0.56         $0.42         $2.48        $1.93
adjusted
Weighted average
shares           186,518        179,832        184,444       177,279
outstanding,
diluted basis


Whole Foods Market, Inc.
Non-GAAP Financial Measures (unaudited)
(In thousands)
                                                            
In addition to reporting financial results in accordance with generally
accepted accounting principles, or GAAP, the Company provides information
regarding Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA"), Return on Invested Capital ("ROIC") and Free Cash
Flow in the press release as additional information about its operating
results. These measures are not in accordance with, or an alternative to,
GAAP. The Company's management believes that these presentations provide
useful information to management, analysts and investors regarding certain
additional financial and business trends relating to its results of operations
and financial condition. In addition, management uses these measures for
reviewing the financial results of the Company as well as a component of
incentive compensation.

The Company defines Adjusted EBITDA as EBITDA plus non-cash share-based
payment expense and deferred rent. The following is a tabular presentation of
the non-GAAP financial measure Adjusted EBITDA including a reconciliation to
GAAP net income, which the Company believes to be the most directly comparable
GAAP financial measure.
                                                            
                  13-weeks ended 12-weeks ended 53-weeks ended 52-weeks ended
EBITDA and         September 30,  September 25,  September 30,  September 25,
Adjusted EBITDA    2012           2011           2012           2011
Net income         $112,732     $75,475      $465,573     $342,612
Provision for      64,651        43,276        286,471       209,100
income taxes
Investment and
other income, net  (1,786)       (1,443)       (8,538)       (4,092)
of interest
Operating income   175,597       117,308       743,506       547,620
Depreciation and   76,649        68,027        311,550       287,109
amortization
Earnings before
interest, taxes,
depreciation &     252,246       185,335       1,055,056     834,729
amortization
(EBITDA)
Deferred rent      10,201        8,799         40,958        32,818
Share-based        13,149        8,169         42,288        27,259
payment expense
Adjusted EBITDA    $275,596     $202,303     $1,138,302   $894,806
                                                            
The Company defines ROIC as annualized adjusted earnings divided by average
invested capital. Earnings are annualized on a 52-week basis. Adjustments to
earnings are defined in the following tabular reconciliation. Invested capital
represents a trailing four-quarter average.
                                                            
                  13-weeks ended 12-weeks ended 53-weeks ended 52-weeks ended
ROIC               September 30,  September 25,  September 30,  September 25,
                   2012           2011           2012           2011
Net income         $112,732     $75,475      $465,573     $342,612
Interest expense,  91            --            219           2,411
net of taxes
Adjusted earnings  112,823       75,475        465,792       345,023
                                                            
Total rent
expense, net of    54,473        47,176        211,344       193,609
taxes^1
Estimated
depreciation on
capitalized        (36,315)      (31,451)      (140,896)     (129,073)
operating leases,
net of taxes^2
Adjusted earnings,
including interest 130,981       91,200        536,240       409,559
related to
operating leases
                                                            
Annualized         $451,292     $327,058     $457,115     $345,023
adjusted earnings
Annualized
adjusted earnings,
including interest $523,924     $395,200     $526,204     $409,559
related to
operating leases
                                                            
Average working
capital, excluding $955,973     $493,187     $955,973     $493,187
current portion of
long-term debt
Average property   2,090,103     1,950,435     2,090,103     1,950,435
and equipment, net
Average other      954,899       872,117       954,899       872,117
assets
Average other      (460,155)     (389,198)     (460,155)     (389,198)
liabilities
Average invested   $3,540,820   $2,926,541   $3,540,820   $2,926,541
capital
Average estimated
asset base of      2,740,419     2,501,264     2,740,419     2,501,264
capitalized
operating leases^3
Average invested
capital, adjusted
for capitalization $6,281,239   $5,427,805   $6,281,239   $5,427,805
of operating
leases
                                                            
ROIC               12.7%          11.2%          12.9%          11.8%
ROIC, adjusted for
capitalization of  8.3%           7.3%           8.4%           7.5%
operating leases
                                                            
^1 Total rent includes minimum base rent of all tendered leases
^2 Estimated depreciation equals 2/3 of total rent expense
^3 Estimated asset base equals 8x total rent expense
                                                            
The Company defines Free Cash Flow as net cash provided by operating
activities less capital expenditures. The following is a tabular
reconciliation of the Free Cash Flow non-GAAP financial measure.
                                                            
                                                            
                  13-weeks ended 12-weeks ended 53-weeks ended 52-weeks ended
Free Cash Flow     September 30,  September 25,  September 30,  September 25,
                   2012           2011           2012           2011
Net cash provided
by operating       $188,829     $159,642     $919,715     $754,845
activities
Development costs  (72,940)      (47,409)      (261,710)     (203,457)
of new locations
Other property and
equipment          (57,314)      (45,977)      (194,539)     (161,507)
expenditures
Free Cash Flow     $58,575      $66,256      $463,466     $389,881

CONTACT: Cindy McCann
         VP of Investor Relations
         512.542.0204

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