<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: Commission File Number:
JUNE 30, 1996 0-19334
- ------------- -------
OUTBACK STEAKHOUSE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 59-3061413
- ------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
550 NORTH REO STREET, SUITE 200
TAMPA, FL 33609
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
(813) 282-1225
---------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
------ ------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. AS OF AUGUST 6, 1996, THERE
WERE 47,929,388 SHARES OF COMMON STOCK, $.01 PAR VALUE OUTSTANDING.
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<PAGE> 2
OUTBACK STEAKHOUSE, INC.
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying unaudited consolidated financial statements have been
prepared by Outback Steakhouse, Inc. (the "Company") pursuant to the rules and
regulations of the Securities and Exchange Commission. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of the
Company, all adjustments (consisting only of normal recurring entries)
necessary for the fair presentation of the Company's results of operations,
financial position and cash flows for the periods presented have been included.
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<PAGE> 3
OUTBACK STEAKHOUSE, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
-------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents................. $ 20,459 $ 27,089
Short-term investment securities.......... 1,039 1,176
Inventories............................... 8,869 6,474
Other current assets...................... 8,167 12,984
-------- --------
Total current assets................ 38,534 47,723
PROPERTY, FIXTURES AND EQUIPMENT, NET........ 334,367 290,630
INVESTMENTS IN AND ADVANCES TO
UNCONSOLIDATED AFFILIATES.................. 15,081 17,250
OTHER ASSETS................................. 12,332 13,668
-------- --------
$400,314 $369,271
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable.......................... $ 25,418 $ 20,285
Sales taxes payable....................... 5,663 4,358
Accrued expenses.......................... 21,490 18,331
Unearned revenue.......................... 8,928 17,632
Current portion of long-term debt......... 711 3,000
-------- --------
Total current liabilities............ 62,210 63,606
DEFERRED INCOME TAXES........................ 1,400 1,298
LONG-TERM DEBT............................... 28,935 37,905
INTEREST OF MINORITY PARTNERS IN CONSOLIDATED
PARTNERSHIPS.............................. 2,610 2,698
OTHER LONG TERM LIABILITIES.................. 5,500
-------- --------
Total liabilities..................... 100,655 105,507
-------- --------
STOCKHOLDERS' EQUITY
Common Stock, $0.01 par value, 100,000 shares
authorized; 47,926 and 47,503, issued
and outstanding as of June 30, 1996 and
December 31, 1995, respectively........ 479 475
Additional paid-in capital................ 105,682 104,884
Retained earnings......................... 193,498 158,405
-------- --------
Total stockholders' equity............ 299,659 263,764
-------- --------
$400,314 $369,271
======== ========
</TABLE>
See notes to consolidated financial statements.
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<PAGE> 4
OUTBACK STEAKHOUSE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA, UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES................ $236,481 $182,723 $452,583 $345,346
-------- -------- -------- --------
COSTS AND EXPENSES
Cost of revenues..... 91,704 72,149 174,894 135,067
Labor & other
related............. 53,787 40,278 102,569 76,087
Other restaurant
operating........... 49,686 37,305 94,971 71,394
General & administrative 7,483 5,768 14,815 11,810
Loss (income) from
operations of uncon-
solidated affiliates. 73 (126) (146) (318)
-------- -------- -------- --------
202,733 155,374 387,103 294,040
-------- -------- -------- --------
INCOME FROM OPERATIONS 33,748 27,349 65,480 51,306
INTEREST EXPENSE, NET... (90) (657) (525) (828)
-------- -------- -------- --------
INCOME BEFORE ELIMINATION OF
MINORITY PARTNERS' INTEREST
AND INCOME TAXES...... 33,658 26,692 64,955 50,478
ELIMINATION OF MINORITY
PARTNERS' INTEREST.... 4,939 3,848 9,690 7,554
-------- -------- -------- --------
INCOME BEFORE PROVISION
FOR INCOME TAXES...... 28,719 22,844 55,265 42,924
PROVISION FOR INCOME
TAXES................. 10,483 7,554 20,172 14,351
-------- -------- -------- --------
NET INCOME.............. $ 18,236 $ 15,290 $ 35,093 $ 28,573
======== ======== ======== ========
EARNINGS PER COMMON
SHARE................ $ 0.37 $ 0.31 $ 0.71 $ 0.59
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES
OUTSTANDING.......... 49,300 48,177 49,600 48,177
======== ======== ======== ========
PRO FORMA:
PROVISION FOR INCOME TAXES 8,448 15,858
-------- --------
NET INCOME $ 14,396 $ 27,066
======== ========
EARNINGS PER COMMON SHARE $ 0.30 $ 0.56
======== ========
</TABLE>
See notes to consolidated financial statements.
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<PAGE> 5
OUTBACK STEAKHOUSE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS, UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
---------------------------
1996 1995
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income....................................... $ 35,093 $ 28,573
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation.................................... 10,988 7,823
Amortization.................................... 6,557 4,809
Outside partners' interest in
consolidated partnerships' income............. 9,690 7,554
Loss (income) from unconsolidated affiliates (146) (318)
Change in assets and liabilities:
Increase in inventories....................... (2,395) (1,671)
Decrease in other current assets.............. 4,817 4,489
Increase in other assets...................... (5,218) (5,485)
Increase in accounts payable, sales taxes
payable, and accrued expenses............... 9,597 9,373
Decrease in unearned revenue.................. (8,704) (6,975)
Increase in deferred income taxes............. 102 659
Increase in other long term liabilities....... 5,500
-------- --------
Net cash provided by operating activities 65,881 48,831
-------- --------
Cash flows used in investing activities:
Sales of investment securities.................. 137 637
Capital expenditures............................ (54,728) (62,718)
Change in investments in and advances to
unconsolidated affiliates..................... 2,315 118
-------- --------
Net cash used in investing activities....... (52,276) (61,963)
-------- --------
Cash flows from financing activities:
Proceeds from stock transactions................ 802 5,971
Proceeds from issuance of long-term debt........ 14,724 18,907
Proceeds from minority partners'
contributions................................. 1,425 1,300
Distributions to minority partners
and shareholders.............................. (11,203) (9,132)
Repayments of long-term debt.................... (25,983) (3,180)
-------- --------
Net cash (used in) provided by financing
activities................................ (20,235) 13,866
-------- --------
Net (decrease) increase in cash and
cash equivalents............................. (6,630) 734
Cash and cash equivalents at beginning
of period................................... 27,089 21,372
-------- --------
Cash and cash equivalents at end of period.. $ 20,459 $ 22,106
======== ========
Supplemental disclosures of cash flow information:
Cash paid for interest...................... $ 773 $ 1,008
Cash paid for income taxes.................. 5,589 11,354
</TABLE>
See notes to consolidated financial statements.
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<PAGE> 6
OUTBACK STEAKHOUSE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
In 1996, the Company issued approximately 2,348,000 shares of its
Common Stock to the shareholders of four of its franchisees in exchange for all
of their outstanding interests in 28 Outback Steakhouses in Ohio, Kentucky,
Virginia, Illinois, Missouri, and Tennessee. The franchise groups include
Garob, Inc., FBS Enterprises, Inc., the Fore Management Group and the Brenica
Restaurant Group Inc.
The mergers discussed above have been accounted for by the pooling of
interest method using historical amounts and the financial statements presented
herein have been restated to give retroactive effect to the mergers for the
applicable periods presented.
For comparative purposes, pro forma earnings and earnings per share
information are presented within this report for the three and six month
periods ended June 30, 1995. In the opinion of management, this information is
necessary for the fair presentation of the operating results for the respective
periods. The pro forma adjustments properly reflect the pro forma increase in
the provision for income taxes of the Company as a result of the mergers
described above. Since the Company is not liable for the payment of income
taxes attributable to the merging companies, no adjustments to the balance
sheets have been made except for the deferred taxes which will be paid by the
Company in future periods.
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<PAGE> 7
OUTBACK STEAKHOUSE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
2. OTHER CURRENT ASSETS
Other current assets consisted of the following (in thousands):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
--------- ------------
<S> <C> <C>
Deposits (including income tax deposits) $ 966 $ 6,310
Accounts receivable............... 2,326 1,667
Prepaid expenses.................. 4,437 3,100
Other current assets.............. 438 1,907
-------- ---------
$ 8,167 $ 12,984
======== =========
</TABLE>
3. PROPERTY, FIXTURES AND EQUIPMENT, NET
Property, fixtures and equipment consisted of the following (in
thousands, adjusted to conform to current period presentation):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
---------- ------------
<S> <C> <C>
Land.............................. $ 74,191 $ 64,923
Buildings and building improvements 98,786 83,386
Furniture and fixtures............ 33,764 22,592
Equipment......................... 76,869 67,345
Leasehold improvements............ 84,190 80,522
Construction in progress.......... 16,941 11,248
Accumulated depreciation.......... (50,374) (39,386)
-------- --------
$334,367 $290,630
======== ========
</TABLE>
4. OTHER ASSETS
Other assets consisted of the following (in thousands):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
--------- ------------
<S> <C> <C>
Preopening costs, net............. $ 4,836 $ 5,134
Intangible assets (including
liquor licenses) 4,197 3,009
Other assets...................... 3,299 5,525
-------- --------
$ 12,332 $ 13,668
======== ========
</TABLE>
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<PAGE> 8
OUTBACK STEAKHOUSE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
5. LONG-TERM DEBT
Long-term debt consisted of the following (in thousands):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
-------- ------------
<S> <C> <C>
Notes payable to banks collateralized by
various items including stock, investment
securities, property, fixtures and equipment,
fixed and variable interest rates ranging from 8.5%
to 9.9%.................................... $ 1,674 $ 15,093
Notes payable to leasing companies, collater-
alized by equipment, interest at rates
ranging from 8% to 13.2%................... 782 409
Other notes payable, unsecured, interest
rates ranging from 5.35% to 7.05%.......... 650 1,003
Revolving line of credit, (see below)........ 26,540 24,400
------- -------
29,646 40,905
Less current portion 711 3,000
------- -------
Long-term debt $28,935 $37,905
======= =======
</TABLE>
Approximately $1,674,000 and $15,093,000 of the notes payable
outstanding at June 30, 1996 and December 31, 1995, respectively, were assumed
by the Company in connection with the mergers discussed in Note 1. The Company
repaid approximately $13,419,000 of these notes in the first six months of
1996.
The Company has an unsecured revolving line of credit which permits
borrowing up to a maximum of $75,000,000 at a rate of .75% over the 30, 60, 90
or 180 day LIBOR (6.31% to 6.44% at June 30, 1996). At June 30, 1996 the
unused portion of the revolving line of credit was $48,460,000. The line
matures in June 1999.
The Company has a $7,500,000 unsecured line of credit bearing interest
of 75 basis points over the London Interbank Offered Rate (LIBOR).
Approximately $2,000,000 of the line of credit is committed for the issuance of
letters of credit, $750,000 of which is to secure loans made by the bank to
certain franchisees.
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<PAGE> 9
6. ACCRUED EXPENSES
Accrued expenses consisted of the following (in thousands):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
---------- ------------
<S> <C> <C>
Accrued payroll................... $ 3,772 $ 3,423
Accrued advertising............... 4,617 1,517
Accrued rent...................... 1,414 1,490
Accrued insurance................. 5,570 7,090
Accrued property taxes............ 2,277 1,375
Other accrued expenses............ 3,840 3,436
-------- --------
$ 21,490 $ 18,331
======== ========
</TABLE>
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<PAGE> 10
OUTBACK STEAKHOUSE, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The following table sets forth, for the periods indicated, (i) the
percentages which the items in the Company's Consolidated Statements of Income
bear to total revenues, or restaurant sales as indicated, and (ii) selected
operating data:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------- ----------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C>
REVENUES 100.0% 100.0% 100.0% 100.0%
COSTS AND EXPENSES:
Cost of sales (1) 39.0 39.6 38.9 39.3
Labor & other related (1) 22.9 22.1 22.8 22.1
Other restaurant operating (1) 21.1 20.5 21.1 20.8
General & administrative 3.2 3.2 3.3 3.4
Loss (income) from operations of
unconsolidated affiliates (0.1) (0.1)
Total costs and expenses 85.7 85.0 85.5 85.1
------ ------ ------ ------
INCOME FROM OPERATIONS 14.3 15.0 14.5 14.9
INTEREST EXPENSE, NET (0.4) (0.1) (0.3)
------ ------ ------ ------
INCOME BEFORE ELIMINATION OF
MINORITY PARTNERS' INTEREST
AND INCOME TAXES 14.3 14.6 14.4 14.6
ELIMINATION OF MINORITY PARTNERS'
INTEREST 2.1 2.1 2.2 2.2
------ ------ ------ ------
INCOME BEFORE PROVISION FOR
INCOME TAXES 12.2 12.5 12.2 12.4
PROVISION FOR INCOME TAXES (2) 4.5 4.6 4.5 4.6
------ ------ ------ ------
NET INCOME (2) 7.7% 7.9% 7.7% 7.8%
====== ====== ====== ======
System-wide sales (millions of dollars):
Outback Steakhouses
Company owned restaurants $227.0 $179.8 $434.4 $339.1
Franchised and joint venture
restaurants 26.0 19.6 54.8 34.5
------ ------ ------ ------
Total 253.0 199.4 489.2 373.6
------ ------ ------ ------
Carrabba's Italian Grills
Company owned restaurants 8.0 2.2 15.4 4.8
Joint venture restaurants 5.3 3.2 10.4 6.4
------ ------ ------ ------
Total 13.3 5.4 25.8 11.2
------ ------ ------ ------
System-wide total $266.3 $204.8 $515.0 $384.8
====== ====== ====== ======
</TABLE>
(1) As a percentage of restaurant sales.
(2) Amounts for the periods ended June 30, 1995 are
pro forma. See Note 1.
10 of 18
<PAGE> 11
RESULTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
JUNE 30,
---------------
1996 1995
------- ------
<S> <C> <C>
Number of restaurants (at end
of the period):
Outback Steakhouses
Company owned restaurants 289 227
Franchised and joint venture restaurants 43 28
--- ---
Total 332 255
--- ---
Carrabba's Italian Grills
Company owned restaurants 17 5
Joint venture restaurants 11 7
--- ---
Total 28 12
--- ---
System-wide total 360 267
=== ===
</TABLE>
11 of 18
<PAGE> 12
THREE MONTHS ENDED JUNE 30, 1996 AND 1995
Revenues. Total revenues increased by 29.4% to $236,481,000 during
the second quarter of 1996 as compared with $182,723,000 in the same period in
1995. This increase was attributable to the opening of new restaurants after
June 30, 1995, partially offset by a 0.6% decrease in same-store sales. The
decrease in same-store sales was primarily attributable to lower customer check
averages.
Costs and expenses. Costs of restaurant sales, consisting of food and
beverage costs, decreased in the second quarter of 1996 to 39.0% of restaurant
sales as compared with 39.6% in the same period in 1995. This decrease was
primarily the result of commodity cost decreases in shrimp and produce, and
a proportionate increase in the number of Company owned Carrabba's Italian
Grills ("Carrabba's") in operation which accounted for 0.2% of the decrease.
Labor and other related expenses increased as a percentage of
restaurant sales by 0.8% to 22.9% in the second quarter of 1996 as compared
with 22.1% in the same period in 1995. This increase was attributable to
higher labor costs in new markets, increased wage rates in certain markets, and
a proportionate increase in the number of Company owned Carrabba's in operation
which accounted for 0.3% of the increase in labor costs.
Other restaurant operating expenses include all other unit-level
operating costs, the major components of which are operating supplies, rent,
repairs and maintenance, advertising expenses, utilities, depreciation and
amortization and other occupancy costs. A substantial portion of these
expenses are fixed or indirectly variable. These costs increased by 0.6% of
restaurant sales, to 21.1% in the second quarter of 1996, as compared with
20.5% in the same period in 1995. This increase primarily was attributable to
an increase in repair and maintenance expenses in more mature restaurants, an
increase in the cost of supplies resulting from an increase in to-go sales, and
a proportionate increase in the number of Carrabba's in operation which
accounted for 0.2% of the increase.
General and administrative costs were 3.2% of revenues for both the
quarters ended June 30, 1996 and 1995.
Loss (income) from operations of unconsolidated affiliates represents
the Company's portion of the loss (income) from the Carrabba's Italian Grills
operated by the Texas joint venture and Outback Steakhouses operated as
development joint ventures. Loss from unconsolidated affiliates was $73,000
during the second quarter of 1996 as compared with income of $126,000 during
the same period in 1995. This decrease was attributable to losses from
Carrabba's Texas operations, and to fewer Outback Steahouses operating as
development joint ventures as a result of the restructuring of the Company's
Nevada operations.
Income from operations. As a result of the increase in revenues, the
changes in the relationship between revenues and expenses discussed above and
the opening of new restaurants, income from operations increased by $6,399,000
to $33,748,000 in the second quarter of 1996 as compared with $27,349,000 in
the same period in 1995.
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<PAGE> 13
Interest expense, net. Net interest expense was $90,000 during the
second quarter of 1996 as compared with net interest expense of $657,000 in the
same period in 1995. This change was attributable to a decrease in borrowings
during the second quarter of 1996, a decrease in interest rates associated
with the Company's line of credit and an increase in the amount of interest
capitalized for new construction.
Elimination of minority interests. The costs included in this line
item represent the portion of income from operations included in consolidated
operating results attributable to the ownership interests of restaurant
managers and joint venture partners in Company owned restaurants. As a
percentage of revenues, these costs were 2.1% for both the quarters ended June
30, 1996 and 1995.
Provision for income taxes. The provision for income taxes in both
quarters reflected expected income taxes due at federal statutory rates
and state income tax rates, net of the federal benefit. The effective income
tax rates were 36.5% and 37.0% during the second quarters of 1996 and 1995,
respectively. The decrease in the effective tax rate in 1996 is attributable
to an increase in FICA tip credits.
Net income and earnings per common share. Net income for the second
quarter of 1996 was $18,236,000 as compared with pro forma net income of
$14,396,000 in the same period in 1995, an increase of 26.7%. Earnings per
share increased to $0.37 during the second quarter of 1996 as compared with
pro forma earnings per share of $0.30 for the same period in 1995.
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
Revenues. Total revenues increased by 31.1% to $452,583,000 during
the first half of 1996 as compared with $345,346,000 in the same period in
1995. Most of the increase was attributable to the opening of new restaurants
after June 30, 1995 and to a 0.2% increase in same store sales.
Costs and expenses. Cost of restaurant sales decreased by 0.4% to
38.9% in the first half of 1996 as compared with 39.3% in the same period in
1995. This decrease was primarily the result of decreases in meat, shrimp and
produce prices, and a proportionate increase in the number of Company owned
Carrabba's in operation which accounted for 0.1% of the increase.
Labor and other related expenses increased as a percentage of
restaurant sales by 0.7% to 22.8% in the first half of 1996 as compared with
22.1% in the same period in 1995. This increase was attributable to higher
labor costs in new markets, increased wage rates in certain markets and a
proportionate increase in the number of Carrabba's in operation which accounted
for 0.3% of the increase.
Other restaurant operating expenses increased by 0.3% of restaurant
sales to 21.1% in the first half of 1996 as compared with 20.8% in the same
13 of 18
<PAGE> 14
period in 1995. This increase was primarily attributable to a proportionate
increase in the number of Carrabba's in operation which have higher average
operating expenses as a percentage of sales.
General and administrative costs decreased to 3.3% of revenues during
the first half of 1996 as compared to 3.4% of revenues in the same period in
1995. This decrease was attributable to the opening of new restaurants.
Income from operations of unconsolidated affiliates represents the
Company's portion of the income from the Carrabba's Italian Grills operated
by the Texas joint venture and Outback Steakhouses operated as development
joint ventures. Income from unconsolidated affiliates was $146,000 in the
first six months of 1996 as compared with $318,000 in the same period in 1995.
This decrease was attributable to losses from Carrabas's Texas operations, and
to fewer Outback Steakhouses operating as development joint ventures as a
result of the restructuring of the Company's Nevada operations.
Income from operations. As a result of the increase in revenues, the
changes in the relationship between revenues and expenses discussed above and
the opening of new restaurants, income from operations increased by
$14,174,000, to $65,480,000 in the first half of 1996 as compared with
$51,306,000 in the same period in 1995.
Interest expense, net. Net interest expense was $525,000 during the
first half of 1996 as compared with net interest expense of $828,000 in the
same period in 1995. This change was primarily attributable to a decrease in
borrowings in the second quarter of 1996, lower interest rates associated with
the Company's line of credit and an increase in the amount of interest
capitalized for new construction.
Provision for income taxes. The effective income tax rates were 36.5%
and 36.9% during the six month periods ended June 30, 1996 and 1995,
respectively. The decrease in the effective tax rate in 1996 is attributable
to an increase in FICA tip credits.
Net income and earnings per common share. Net income for the first
half of 1996 was $35,093,000 as compared with pro forma net income of
$27,066,000 in the same period in 1995, an increase of 29.7%. Earnings per
share increased to $0.71 during the first half of 1996 as compared with pro
forma earnings per share of $0.56 in the same period in 1995.
14 of 18
<PAGE> 15
LIQUIDITY AND CAPITAL RESOURCES
The following table presents a summary of the Company's cash flows
from operating, investing and financing activities for the periods indicated
(in thousands).
<TABLE>
<CAPTION>
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, JUNE 30,
1995 1996 1995
----------- ---------- ----------
<S> <C> <C> <C>
Net cash provided by
operating activities $ 103,325 $ 65,881 $ 48,831
Net cash used in investing
activities (119,410) (52,276) (61,963)
Net cash provided by (used in)
financing activities 21,602 (20,235) 13,866
-------- ------- -------
Net increase (decrease) in
cash and cash equivalents $ 5,517 $ (6,630) $ 734
======== ======= =======
</TABLE>
The Company requires capital principally for the development of new
Company owned and joint venture restaurants. Capital expenditures totaled
approximately $121,725,000 for the year ended December 31, 1995 and $54,728,000
and $62,718,000 during the first half of 1996 and 1995, respectively. The
Company either leases its restaurants under operating leases for periods
ranging from five to twenty years or purchases land and buildings where it is
cost effective.
The Company has two unsecured lines of credit totaling $82,500,000.
Approximately $2,000,000 was committed for the issuance of letters of credit,
some of which are to secure loans made by banks to certain franchisees, and
$26,540,000 has been drawn to cover capital expenditures and to repay certain
bank loans assumed in connection with the mergers discussed in Note 1 of Notes
to Consolidated Financial Statements. The Company expects that its capital
requirements through the end of 1996 will be met by cash flows from operations
and advances on its line of credit. See Note 5 of Notes to Consolidated
Financial Statements.
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<PAGE> 16
OUTBACK STEAKHOUSE, INC.
PART II: OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
At the Annual Meeting of Stockholders held on Tuesday, April 23, 1996,
Robert D. Basham, W.R. Carey Jr., Nancy Schneid and Hal W. Smith were elected
to serve for a term of three years, and Debbie Fields was elected to serve for
a term of one year. The following is a report of proxies voted for the
election of the four directors.
<TABLE>
<S> <C> <C>
For 30,375,815 64.40%
Withheld 178,399 .38%
Exceptions 137,464 .29%
---------- -----
Total 30,691,678 65.07%
========== =====
Eligible 47,168,230
</TABLE>
Chris T. Sullivan, J. Timothy Gannon, Robert S. Merritt, John A.
Brabson, Jr., Charles H. Bridges, Edward L. Flom and Lee Roy Selmon's terms of
office as directors continued after the meeting.
Item 5. Other Information.
Effective August 6,1996, Hal W. Smith voluntarily resigned
from the Board of Directors. Mr. Smith did not cite any disagreements relating
to operations, policies or practices of the Company upon his resignation.
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<PAGE> 17
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27- Financial Data Schedules (for SEC use only)
(b) Reports on Form 8-K
There were no reports filed on Form 8-K during the quarter
ended June 30, 1996.
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<PAGE> 18
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
OUTBACK STEAKHOUSE, INC.
-------------------------------
(Registrant)
Date: AUGUST 13, 1996 By: ROBERT S. MERRITT
----------------------- ---------------------------
Robert S. Merritt
Senior Vice President,
Finance (Principal Financial
and Accounting Officer)
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<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 20,459
<SECURITIES> 1,039
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 8,869
<CURRENT-ASSETS> 38,534
<PP&E> 384,741
<DEPRECIATION> (50,374)
<TOTAL-ASSETS> 400,314
<CURRENT-LIABILITIES> 62,210
<BONDS> 28,935
0
0
<COMMON> 479
<OTHER-SE> 299,180
<TOTAL-LIABILITY-AND-EQUITY> 400,314
<SALES> 449,800
<TOTAL-REVENUES> 452,583
<CGS> 174,894
<TOTAL-COSTS> 372,434
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 525
<INCOME-PRETAX> 55,265
<INCOME-TAX> 20,172
<INCOME-CONTINUING> 35,093
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 35,093
<EPS-PRIMARY> .71
<EPS-DILUTED> .71
</TABLE>
