Brinker International Inc.®

Annual Report 2006


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BRINKER INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)

  Fiscal Years
  2006   2005   2004
Revenues    $ 4,151,291         $ 3,749,539         $ 3,541,005     
Operating Costs and Expenses:
    Cost of sales
  1,160,931     1,059,822     980,717  
    Restaurant expenses   2,264,525     2,076,453     1,924,390  
    Depreciation and amortization   190,206     179,908     167,802  
    General and administrative   207,080     153,116     150,558  
    Restructure charges and other impairments   1,950     61,855     69,236  
        Total operating costs and expenses   3,824,692     3,531,154     3,292,703  
Operating income   326,599     218,385     248,302  
Interest expense   22,857     25,260     11,495  
Other, net   (1,656   1,526     1,742  
Income before provision for income taxes   305,398     191,599     235,065  
Provision for income taxes   91,448     33,143     82,882  
    Income from continuing operations   213,950     158,456     152,183  
    (Loss) income from discontinued operations, net of tax   (1,555   1,763     (1,265
        Net income $ 212,395   $ 160,219   $ 150,918  
Basic net income per share:
    Income from continuing operations
$ 2.49   $ 1.79   $ 1.58  
    (Loss) income from discontinued operations $ (0.02  ) $ 0.02   $ (0.01  )
    Net income per share $ 2.47   $ 1.81   $ 1.57  
Diluted net income per share:
    Income from continuing operations
$ 2.45   $ 1.71   $ 1.49  
    (Loss) income from discontinued operations $ (0.02 $ 0.02   $ (0.01
    Net income per share $ 2.43   $ 1.73   $ 1.48  
Basic weighted average shares outstanding   85,844     88,530     96,072  
Diluted weighted average shares outstanding   87,289     94,229     105,739  

See accompanying notes to consolidated financial statements.

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