ANN ARBOR, Mich., Feb. 25, 2016 /PRNewswire/ -- Domino's
Pizza, Inc. (NYSE: DPZ), the recognized world leader in pizza
delivery, today announced results for the fourth quarter and fiscal
2015, comprised of strong growth in same store sales, global store
counts and earnings. Domestic same store sales grew 10.7%
during the quarter versus the year-ago period, and 12.0% for the
full year, continuing the positive sales momentum in the Company's
domestic business. The international division also posted strong
results, with same store sales growth of 8.6% during the quarter
and 7.8% for the full year. The fourth quarter marked the
88th consecutive quarter – or 22nd full year
– of positive international same store sales growth. The
Company also had global net store growth of 901 stores in 2015,
comprised of 133 net new domestic stores and a record 768 net new
stores internationally.
On an as-reported basis, fourth quarter diluted EPS was
$1.18, up 38.8% over the prior-year
quarter; full year diluted EPS was $3.47, up 21.3% over the prior year. Management
noted that the as-reported diluted EPS for both the fourth quarter
and fiscal year was negatively impacted by expenses related to the
Company's recapitalization, which was completed during the fourth
quarter, and was positively impacted by the inclusion of an extra,
or 53rd, week in the fourth quarter of 2015. On an
as-adjusted basis, fourth quarter diluted EPS was $1.15, up 26.4% over the prior-year quarter; full
year as-adjusted diluted EPS was $3.45, up 19.0% over the prior year.
In connection with the Company's recapitalization, as further
discussed below, the Company borrowed $1.3
billion, and used a portion of the proceeds to retire a
portion of its existing debt and enter into a $600 million accelerated share repurchase (ASR)
program. As part of the ASR, the Company received and retired
4,858,994 shares of its common stock during the quarter.
Additionally, on February 24, 2016,
the Board of Directors declared a 38-cent per share quarterly dividend for
shareholders of record as of March 15,
2016 to be paid on March 30,
2016. This represents a 22.6% increase over the previous
quarterly dividend amount.
"Our network of strong franchisees has become even more
profitable during these years of continued positive same store
sales growth," said J. Patrick
Doyle, Domino's President and Chief Executive Officer.
"Great store economics around the world have led to accelerated
unit growth. It's a positive cycle and the momentum continued
through 2015."
Fourth Quarter and Fiscal 2015 Highlights:
(dollars in
millions, except per share data)
|
|
Fourth
Quarter
of
2015
|
|
|
Fourth
Quarter
of
2014
|
|
|
Fiscal
2015
|
|
|
Fiscal
2014
|
|
Net
income
|
|
$
|
62.8
|
|
|
$
|
48.0
|
|
|
$
|
192.8
|
|
|
$
|
162.6
|
|
Weighted average
diluted shares
|
|
|
53,351,075
|
|
|
|
56,777,007
|
|
|
|
55,532,955
|
|
|
|
56,931,226
|
|
Diluted earnings
per share, as reported
|
|
$
|
1.18
|
|
|
$
|
0.85
|
|
|
$
|
3.47
|
|
|
$
|
2.86
|
|
Items affecting
comparability*
|
|
|
(0.02)
|
|
|
|
0.06
|
|
|
|
(0.02)
|
|
|
|
0.04
|
|
Diluted earnings
per share, as adjusted*
|
|
$
|
1.15
|
|
|
$
|
0.91
|
|
|
$
|
3.45
|
|
|
$
|
2.90
|
|
* Refer to the Items Affecting Comparability
section on page three for additional details. Diluted earnings per
share, as adjusted figures may not sum to the total due to the
rounding of each individual calculation.
- Revenues were up 15.3% for the fourth quarter versus the
prior year period largely due to the estimated $49.7 million positive impact of the
53rd week in 2015. Revenue growth was also driven by
higher supply chain volumes and sales of equipment to stores in
connection with the Company's global store reimaging program.
Higher domestic same store sales and store count growth, which
resulted in increased royalties from franchised stores and higher
revenues at Company-owned stores, also contributed to this
increase. International revenues also benefited from increased same
store sales and store count growth, and were offset in part by the
negative impact of foreign currency.
- Net Income was up 30.7% for the fourth quarter versus
the prior year period, driven by domestic and international same
store sales growth, global store count growth and higher supply
chain volumes. The estimated $6.3
million positive impact of the 53rd week, and the
non-recurrence of an asset impairment charge in the fourth quarter
of 2014 also contributed to the increase. These increases were
offset in part by the negative impact of foreign currency exchange
rates and, to a lesser extent, expenses related to the Company's
recapitalization.
- Diluted EPS increases, as noted earlier, were due to
higher net income and lower weighted average diluted shares
outstanding. (See the Items Affecting Comparability section
and the Comments on Regulation G section.)
The table below outlines certain statistical measures utilized
by the Company to analyze its performance. Refer to the Comments
on Regulation G section on page four for additional
details.
|
|
Fourth
Quarter
of
2015
|
|
|
Fiscal
2015
|
|
Same store sales
growth: (versus prior year period)
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
+10.0
|
%
|
|
|
+ 12.2
|
%
|
Domestic franchise
stores
|
|
|
+ 10.7
|
%
|
|
|
+ 11.9
|
%
|
Domestic
stores
|
|
|
+ 10.7
|
%
|
|
|
+ 12.0
|
%
|
International stores
(excluding foreign currency impact)
|
|
|
+ 8.6
|
%
|
|
|
+ 7.8
|
%
|
|
|
|
|
|
|
|
|
|
Global retail
sales growth*: (versus prior year period)
|
|
|
|
|
|
|
|
|
Domestic
stores
|
|
|
+ 21.5
|
%
|
|
|
+ 16.9
|
%
|
International
stores
|
|
|
+ 14.2
|
%
|
|
|
+ 6.1
|
%
|
Total
|
|
|
+ 17.6
|
%
|
|
|
+ 11.1
|
%
|
|
|
|
|
|
|
|
|
|
Global retail
sales growth*: (versus prior year period,
excluding foreign currency impact)
|
|
|
|
|
|
|
|
|
Domestic
stores
|
|
|
+ 21.5
|
%
|
|
|
+ 16.9
|
%
|
International
stores
|
|
|
+ 28.3
|
%
|
|
|
+ 20.1
|
%
|
Total
|
|
|
+ 25.2
|
%
|
|
|
+ 18.6
|
%
|
*Global retail sales include the favorable impact of the
extra week in the fourth quarter.
|
|
Domestic
Company-
owned
Stores
|
|
|
Domestic
Franchise
Stores
|
|
|
Total
Domestic
Stores
|
|
|
International
Stores
|
|
|
Total
|
|
Store
counts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store count at
September 6, 2015
|
|
|
377
|
|
|
|
4,735
|
|
|
|
5,112
|
|
|
|
7,007
|
|
|
|
12,119
|
|
Openings
|
|
|
9
|
|
|
|
83
|
|
|
|
92
|
|
|
|
348
|
|
|
|
440
|
|
Closings
|
|
|
—
|
|
|
|
(4)
|
|
|
|
(4)
|
|
|
|
(25)
|
|
|
|
(29)
|
|
Transfers
|
|
|
(2)
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Store count at January
3, 2016
|
|
|
384
|
|
|
|
4,816
|
|
|
|
5,200
|
|
|
|
7,330
|
|
|
|
12,530
|
|
Fourth quarter 2015
net change
|
|
|
7
|
|
|
|
81
|
|
|
|
88
|
|
|
|
323
|
|
|
|
411
|
|
Trailing four quarters
net change
|
|
|
7
|
|
|
|
126
|
|
|
|
133
|
|
|
|
768
|
|
|
|
901
|
|
2015 Recapitalization
On October 27, 2015, the Company
announced it had completed its recapitalization. The Company
borrowed $1.3 billion of fixed rate
senior secured notes and entered into a new $125.0 million of variable funding note facility,
which replaced its previous $100.0
million variable funding note facility. The Company
used a portion of the proceeds from the recapitalization to
repurchase and retire approximately $551.3
million of its outstanding 2012 fixed rate notes, at
par. Additionally, in connection with the recapitalization,
the Board of Directors authorized a new share repurchase program
that allows the Company to repurchase up to $800.0 million of its common stock. This
$800.0 million share repurchase
program replaced the then existing $200.0
million share repurchase program. As part of this
$800.0 million share repurchase
program, the Company entered into a $600.0
million ASR agreement with a counterparty. On
October 30, 2015 and as part of the
ASR, the Company received and retired 4,858,994 shares of its
common stock. At final settlement of the ASR, which is
expected to be completed by the end of the first quarter of fiscal
2016, the Company may receive additional shares of common stock,
or, under certain circumstances, the Company may be required to
deliver shares of its common stock or may elect to make a cash
payment to the counterparty, based on the terms of the related ASR
agreement. As of February 18, 2016,
the Company had authorization for repurchases of $200.0 million remaining under its open market
share repurchase program.
The Company incurred certain expenses in connection with the
recapitalization that are outlined in the items affecting
comparability table below. Separately, the Company also recorded
$17.4 million of debt issuance costs,
which are included as a reduction of long-term debt on the
consolidated balance sheet at January 3,
2016 and are expected be amortized into interest expense
over the terms of its fixed rate notes.
Dividends
On February 24, 2016, the Board of
Directors declared a 38-cent per
share quarterly dividend for shareholders of record as of
March 15, 2016, to be paid on
March 30, 2016. This represents a
22.6% increase over the previous quarterly dividend amount.
Conference Call Information
The Company will file its annual report on Form 10-K this
morning. As previously announced, Domino's Pizza, Inc. will
hold a conference call today at 10
a.m. (Eastern) to review its 2015 financial results. The
call can be accessed by dialing (888) 400-9978 (U.S./Canada) or (706) 634-4947 (International). Ask
for the Domino's Pizza conference call. The call will also be
webcast at biz.dominos.com. If you are unable to participate on the
call, a replay will be available for 30 days by dialing (855)
859-2056 (U.S./Canada) or (404)
537-3406 (International), Conference ID 20605469. The webcast will
also be archived for 30 days on biz.dominos.com.
Items Affecting Comparability
The Company's reported financial results for the fourth quarter
and fiscal 2015 are not comparable to the reported financial
results for the equivalent periods in 2014. The table below
presents certain items that affect comparability between 2015 and
2014 financial results. Management believes that including such
information is critical to the understanding of its financial
results for the fourth quarter and fiscal 2015 as compared to the
same periods in 2014 (See the Comments on Regulation G
section on pages four and five for additional details).
In addition to the items noted in the table below, the Company
had lower weighted average diluted shares outstanding in 2015 that
resulted in an increase in diluted EPS of approximately
seven cents in the fourth quarter of
2015 and eight cents in fiscal
2015. The Company also incurred higher interest expense in
fiscal 2015 primarily as a result of higher net debt levels.
The increase in interest expense resulted in a decrease in diluted
EPS of approximately five cents in
the fourth quarter of 2015 and four
cents in fiscal 2015.
|
|
Fourth
Quarter
|
|
|
Full
Year
|
|
(in thousands,
except per share data)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
Impact
|
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
Impact
|
|
2015 items
affecting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recapitalization
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses (1)
|
|
$
|
(860)
|
|
|
$
|
(539)
|
|
|
$
|
(0.01)
|
|
|
$
|
(860)
|
|
|
$
|
(539)
|
|
|
$
|
(0.01)
|
|
Interest expense
(2)
|
|
|
(405)
|
|
|
|
(254)
|
|
|
|
(0.00)
|
|
|
|
(405)
|
|
|
|
(254)
|
|
|
|
(0.00)
|
|
Debt issuance cost
write-off (3)
|
|
|
(6,870)
|
|
|
|
(4,305)
|
|
|
|
(0.08)
|
|
|
|
(6,870)
|
|
|
|
(4,305)
|
|
|
|
(0.08)
|
|
Subtotal
|
|
|
(8,135)
|
|
|
|
(5,098)
|
|
|
|
(0.10)
|
|
|
|
(8,135)
|
|
|
|
(5,098)
|
|
|
|
(0.09)
|
|
Estimated
53rd week impact (4)
|
|
|
10,131
|
|
|
|
6,348
|
|
|
|
0.12
|
|
|
|
10,131
|
|
|
|
6,348
|
|
|
|
0.11
|
|
Total of 2015
items*
|
|
$
|
1,996
|
|
|
$
|
1,250
|
|
|
$
|
0.02
|
|
|
$
|
1,996
|
|
|
$
|
1,250
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 items
affecting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on the sale of
Company-owned stores (5)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,652
|
|
|
$
|
1,033
|
|
|
$
|
0.02
|
|
Deferred tax asset
valuation allowance
reversal
(6)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
329
|
|
|
|
0.01
|
|
Impairment of
corporate airplane (7)
|
|
|
(5,781)
|
|
|
|
(3,614)
|
|
|
|
(0.06)
|
|
|
|
(5,781)
|
|
|
|
(3,614)
|
|
|
|
(0.06)
|
|
Total of 2014
items*
|
|
$
|
(5,781)
|
|
|
$
|
(3,614)
|
|
|
$
|
(0.06)
|
|
|
$
|
(4,129)
|
|
|
$
|
(2,252)
|
|
|
$
|
(0.04)
|
|
* Diluted EPS Impact figures may not sum to the total due
to the rounding of each individual calculation.
(1) Represents legal, professional and administrative fees
incurred in connection with the Company's 2015
recapitalization.
(2) Represents interest expense the Company incurred on a portion
its 2012 borrowings subsequent to the closing of the 2015
recapitalization but prior to the repayment of a portion of the
2012 borrowings, resulting in the payment of interest on both the
2012 and 2015 facilities for a short period of time.
(3) Represents the write-off of debt issuance costs related to the
extinguishment of a portion of the 2012 debt in connection with the
Company's 2015 recapitalization.
(4) Represents the estimated impact on income of the
53rd week in the fourth quarter and fiscal 2015.
(5) Represents the gain recognized on the sale of 14 Company-owned
stores to a franchisee. The gain is net of a reduction in goodwill
of approximately $0.5 million.
(6) As a result of the capital gain recognized in connection with
the sale of Company-owned stores, the Company was able to utilize a
portion of a previously unrecognized benefit of a capital loss
carry forward.
(7) In connection with the purchase of a newer model used airplane,
the Company recognized an impairment charge to reduce its existing
corporate airplane to its fair value, less cost to sell.
Long Range Outlook
The Company does not provide quarterly or annual earnings
estimates. The following long range outlook does not constitute
specific earnings guidance, but the Company believes these ranges
to be appropriate and achievable over the long term. In
January 2016, the Company provided
this long range outlook, as follows:
|
Current
Outlook
|
|
Prior
Outlook
|
|
|
|
|
|
|
Domestic same store
sales growth
|
2% – 5%
|
|
2% – 4%
|
|
International same
store sales growth
|
3% – 6%
|
|
3% – 6%
|
|
Net unit
growth
|
5% – 7%
|
|
5% – 7%
|
|
Global retail sales
growth
|
7% – 11%
|
|
7% – 11%
|
|
Effective tax
rate
|
37% – 38%
|
|
37% – 38%
|
|
Liquidity
As of January 3, 2016, the Company
had approximately:
- $133.4 million of unrestricted
cash and cash equivalents;
- $2.24 billion in total debt;
and
- $78.8 million of available
borrowings under its $125.0 million
variable funding notes facility. This amount is net of letters of
credit issued of $46.2 million, of
which $40.0 million has been
collateralized with restricted cash. The Company has the ability to
access this collateralized cash with minimal notice.
The Company invested $63.3 million
in capital expenditures during fiscal 2015, versus $70.1 million in fiscal 2014.
Free cash flow, as reconciled below to cash flows from
operations as determined under generally accepted accounting
principles (GAAP), was approximately $228.5
million in fiscal 2015.
(in
thousands)
|
|
Fiscal
2015
|
|
Net cash provided by
operating activities
|
|
$
|
291,786
|
|
Capital
expenditures
|
|
|
(63,282)
|
|
Free cash
flow
|
|
$
|
228,504
|
|
Comments on Regulation G
In addition to the GAAP financial measures set forth in this
press release, the Company has included non-GAAP financial measures
within the meaning of Regulation G due to items affecting
comparability between fiscal quarters and fiscal years. The Company
has also included metrics such as global retail sales growth and
same store sales growth, which are commonly used statistical
measures in the quick-service restaurant industry that are
important to understanding Company performance.
The Company uses "Diluted EPS, as adjusted," which is
calculated as reported Diluted EPS adjusted for the items that
affect comparability to the prior year periods discussed above. The
most directly comparable financial measure calculated and presented
in accordance with GAAP is Diluted EPS. The Company believes that
the Diluted EPS, as adjusted measure is important and useful to
investors and other interested persons and that such persons
benefit from having a consistent basis for comparison between
reporting periods. The Company uses Diluted EPS, as adjusted to
internally evaluate operating performance, to evaluate itself
against its peers and in long-range planning. Additionally, the
Company believes that analysts covering the Company's stock
performance generally eliminate these items affecting comparability
when preparing their financial models, when determining their
published EPS estimates and when benchmarking the Company against
its competitors.
The Company uses "Global retail sales" to refer to total
worldwide retail sales at Company-owned and franchise stores. The
Company believes global retail sales information is useful in
analyzing revenues because franchisees pay royalties that are based
on a percentage of franchise retail sales. The Company reviews
comparable industry global retail sales information to assess
business trends and to track the growth of the Domino's
Pizza® brand. In addition, supply chain revenues are
directly impacted by changes in franchise retail sales. Retail
sales for franchise stores are reported to the Company by its
franchisees and are not included in Company revenues.
The Company uses "Same store sales growth," which is
calculated by including only sales from stores that also had sales
in the comparable period of the prior year. International same
store sales growth is calculated similarly to domestic same store
sales growth. Changes in international same store sales are
reported excluding foreign currency impacts, which reflect changes
in international local currency sales.
The Company uses "Free cash flow," which is calculated as
cash flows from operations less capital expenditures, both as
reported under GAAP. The Company believes that the free cash flow
measure is important to investors and other interested persons, and
that such persons benefit from having a measure which communicates
how much cash flow is available for working capital needs or to be
used for repurchasing debt, making acquisitions, repurchasing
common stock, paying dividends or other similar uses of cash.
About Domino's Pizza®
Founded in 1960, Domino's Pizza is the recognized world leader
in pizza delivery, with a significant business in carryout pizza.
It ranks among the world's top public restaurant brands with a
global enterprise of more than 12,500 stores in over 80
international markets. Domino's had global retail sales of over
$9.9 billion in 2015, comprised of
more than $4.8 billion in the U.S.
and nearly $5.1 billion
internationally. In the fourth quarter of 2015, Domino's had global
retail sales of over $3.3 billion,
comprised of over $1.6 billion in the
U.S. and over $1.7 billion
internationally. Its system is comprised of independent franchise
owners who accounted for nearly 97% of Domino's stores as of the
fourth quarter of 2015. Emphasis on technology innovation helped
Domino's generate over 50% of U.S. sales from digital channels at
the end of 2015, and reach an estimated $4.7
billion annually in global digital sales. Domino's features
an ordering app lineup that covers nearly 95% of the U.S.
smartphone market and has recently introduced several innovative
ordering platforms, including Ford SYNC®, Samsung Smart
TV® and Pebble Watch, as well as Twitter and text
message using a pizza emoji. In late 2015, Domino's announced the
design and launch of the DXP®, a purpose-built pizza
delivery vehicle, as well as Piece of the Pie Rewards, its first
digital customer loyalty program.
Order – dominos.com
AnyWare Ordering – anyware.dominos.com
Company Info – biz.dominos.com
Twitter – twitter.com/dominos
Facebook – www.facebook.com/dominos
Instagram – instagram.com/dominos
YouTube – www.youtube.com/dominos
Please visit our Investor Relations website at biz.dominos.com
to view a schedule of upcoming earnings releases, significant
announcements and conference webcasts.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:
This press release contains forward-looking statements. You can
identify forward-looking statements because they contain words such
as "believes," "expects," "may," "will," "should," "seeks,"
"approximately," "intends," "plans," "estimates," or "anticipates"
or similar expressions that concern our strategy, plans or
intentions. These forward-looking statements relating to our
anticipated profitability, estimates in same store sales growth,
the growth of our international business, ability to service our
indebtedness, our future cash flows, our operating performance,
trends in our business and other descriptions of future events
reflect the Company's expectations based upon currently available
information and data. However, actual results are subject to future
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. The risks and uncertainties that could cause actual
results to differ materially include: the level of our long-term
and other indebtedness, uncertainties relating to litigation;
consumer preferences, spending patterns and demographic trends; the
effectiveness of our advertising, operations and promotional
initiatives; the strength of our brand in the markets in which we
compete; our ability to retain key personnel; new product, digital
ordering and concept developments by us, and other food-industry
competitors; the ongoing level of profitability of our franchisees;
and our ability and that of our franchisees to open new restaurants
and keep existing restaurants in operation; changes in operating
expenses resulting from changes in prices of food (particularly
cheese), labor, utilities, insurance, employee benefits and other
operating costs; the impact that widespread illness or general
health concerns may have on our business and the economy of the
countries where we operate; severe weather conditions and natural
disasters; changes in our effective tax rate; changes in foreign
currency exchange rates; changes in government legislation and
regulations; adequacy of our insurance coverage; costs related to
future financings; our ability and that of our franchisees to
successfully operate in the current credit environment; changes in
the level of consumer spending given the general economic
conditions including interest rates, energy prices and consumer
confidence; availability of borrowings under our variable funding
notes and our letters of credit; the final terms and timing of
completion of the ASR; and changes in accounting policies.
Important factors that could cause actual results to differ
materially from our expectations are more fully described in our
other filings with the Securities and Exchange Commission,
including under the section headed "Risk Factors" in our annual
report on Form 10-K. These forward-looking statements speak only as
of the date of this press release, and you should not rely on such
statements as representing the views of the Company as of any
subsequent date. Except as required by applicable securities laws,
we do not undertake to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
TABLES TO FOLLOW
Domino's Pizza,
Inc. and Subsidiaries
Condensed
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
|
January
3,
2016
|
|
|
%
of
Total
Revenues
|
|
|
December
28,
2014
|
|
|
%
of
Total
Revenues
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
$
|
129,291
|
|
|
|
|
|
|
$
|
109,582
|
|
|
|
|
|
Domestic
franchise
|
|
|
90,822
|
|
|
|
|
|
|
|
72,875
|
|
|
|
|
|
Supply
chain
|
|
|
465,011
|
|
|
|
|
|
|
|
410,755
|
|
|
|
|
|
International
franchise
|
|
|
56,059
|
|
|
|
|
|
|
|
49,738
|
|
|
|
|
|
Total
revenues
|
|
|
741,183
|
|
|
|
100.0
|
%
|
|
|
642,950
|
|
|
|
100.0
|
%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
95,028
|
|
|
|
|
|
|
|
84,123
|
|
|
|
|
|
Supply
chain
|
|
|
414,716
|
|
|
|
|
|
|
|
369,262
|
|
|
|
|
|
Total cost of
sales
|
|
|
509,744
|
|
|
|
68.8
|
%
|
|
|
453,385
|
|
|
|
70.5
|
%
|
Operating
margin
|
|
|
231,439
|
|
|
|
31.2
|
%
|
|
|
189,565
|
|
|
|
29.5
|
%
|
General and
administrative
|
|
|
93,027
|
|
|
|
12.6
|
%
|
|
|
86,683
|
|
|
|
13.5
|
%
|
Income from
operations
|
|
|
138,412
|
|
|
|
18.6
|
%
|
|
|
102,882
|
|
|
|
16.0
|
%
|
Interest expense,
net
|
|
|
(40,285)
|
|
|
|
(5.4)%
|
|
|
|
(26,667)
|
|
|
|
(4.1)%
|
|
Income before
provision for income taxes
|
|
|
98,127
|
|
|
|
13.2
|
%
|
|
|
76,215
|
|
|
|
11.9
|
%
|
Provision for income
taxes
|
|
|
35,368
|
|
|
|
4.7
|
%
|
|
|
28,182
|
|
|
|
4.4
|
%
|
Net income
|
|
$
|
62,759
|
|
|
|
8.5
|
%
|
|
$
|
48,033
|
|
|
|
7.5
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
|
$
|
1.18
|
|
|
|
|
|
|
$
|
0.85
|
|
|
|
|
|
Dividends declared
per share
|
|
$
|
0.31
|
|
|
|
|
|
|
$
|
0.25
|
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries
Condensed
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January
3,
2016
|
|
|
%
of
Total
Revenues
|
|
|
December
28,
2014
|
|
|
%
of
Total
Revenues
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
$
|
396,916
|
|
|
|
|
|
|
$
|
348,497
|
|
|
|
|
|
Domestic
franchise
|
|
|
272,808
|
|
|
|
|
|
|
|
230,192
|
|
|
|
|
|
Supply
chain
|
|
|
1,383,161
|
|
|
|
|
|
|
|
1,262,523
|
|
|
|
|
|
International
franchise
|
|
|
163,643
|
|
|
|
|
|
|
|
152,621
|
|
|
|
|
|
Total
revenues
|
|
|
2,216,528
|
|
|
|
100.0
|
%
|
|
|
1,993,833
|
|
|
|
100.0
|
%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
299,294
|
|
|
|
|
|
|
|
267,385
|
|
|
|
|
|
Supply
chain
|
|
|
1,234,103
|
|
|
|
|
|
|
|
1,131,682
|
|
|
|
|
|
Total cost of
sales
|
|
|
1,533,397
|
|
|
|
69.2
|
%
|
|
|
1,399,067
|
|
|
|
70.2
|
%
|
Operating
margin
|
|
|
683,131
|
|
|
|
30.8
|
%
|
|
|
594,766
|
|
|
|
29.8
|
%
|
General and
administrative
|
|
|
277,692
|
|
|
|
12.5
|
%
|
|
|
249,405
|
|
|
|
12.5
|
%
|
Income from
operations
|
|
|
405,439
|
|
|
|
18.3
|
%
|
|
|
345,361
|
|
|
|
17.3
|
%
|
Interest expense,
net
|
|
|
(99,224)
|
|
|
|
(4.5)%
|
|
|
|
(86,738)
|
|
|
|
(4.3)%
|
|
Income before
provision for income taxes
|
|
|
306,215
|
|
|
|
13.8
|
%
|
|
|
258,623
|
|
|
|
13.0
|
%
|
Provision for income
taxes
|
|
|
113,426
|
|
|
|
5.1
|
%
|
|
|
96,036
|
|
|
|
4.8
|
%
|
Net income
|
|
$
|
192,789
|
|
|
|
8.7
|
%
|
|
$
|
162,587
|
|
|
|
8.2
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
|
$
|
3.47
|
|
|
|
|
|
|
$
|
2.86
|
|
|
|
|
|
Dividends declared
per share
|
|
$
|
1.24
|
|
|
|
|
|
|
$
|
1.00
|
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
January 3,
2016
|
|
|
December 28,
2014
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
133,449
|
|
|
$
|
30,855
|
|
Restricted cash and
cash equivalents
|
|
|
180,940
|
|
|
|
120,954
|
|
Accounts
receivable
|
|
|
131,582
|
|
|
|
118,395
|
|
Inventories
|
|
|
36,861
|
|
|
|
37,944
|
|
Advertising fund
assets, restricted
|
|
|
99,159
|
|
|
|
72,055
|
|
Other
assets
|
|
|
20,646
|
|
|
|
48,158
|
|
Total current
assets
|
|
|
602,637
|
|
|
|
428,361
|
|
Property, plant and
equipment, net
|
|
|
131,890
|
|
|
|
114,046
|
|
Other
assets
|
|
|
65,318
|
|
|
|
53,926
|
|
Total
assets
|
|
$
|
799,845
|
|
|
$
|
596,333
|
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
59,333
|
|
|
$
|
565
|
|
Accounts
payable
|
|
|
106,927
|
|
|
|
86,552
|
|
Dividends
payable
|
|
|
557
|
|
|
|
14,351
|
|
Advertising fund
liabilities
|
|
|
99,159
|
|
|
|
72,055
|
|
Other accrued
liabilities
|
|
|
110,007
|
|
|
|
92,085
|
|
Total current
liabilities
|
|
|
375,983
|
|
|
|
265,608
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
2,181,460
|
|
|
|
1,500,599
|
|
Other accrued
liabilities
|
|
|
42,653
|
|
|
|
49,591
|
|
Total long-term
liabilities
|
|
|
2,224,113
|
|
|
|
1,550,190
|
|
Total stockholders'
deficit
|
|
|
(1,800,251)
|
|
|
|
(1,219,465)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
799,845
|
|
|
$
|
596,333
|
|
Domino's Pizza,
Inc. and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January
3,
2016
|
|
|
December
28,
2014
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
192,789
|
|
|
$
|
162,587
|
|
Adjustments to
reconcile net income to net cash flows provided by
operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
32,434
|
|
|
|
35,788
|
|
(Gains) losses on
sale/disposal of assets
|
|
|
316
|
|
|
|
(1,107)
|
|
Amortization of debt
issuance costs
|
|
|
12,393
|
|
|
|
5,746
|
|
Provision (benefit)
for deferred income taxes
|
|
|
1,713
|
|
|
|
(132)
|
|
Non-cash compensation
expense
|
|
|
17,623
|
|
|
|
17,587
|
|
Tax impact from
equity-based compensation
|
|
|
(17,775)
|
|
|
|
(27,583)
|
|
Other
|
|
|
(1,084)
|
|
|
|
(570)
|
|
Changes in operating
assets and liabilities
|
|
|
53,377
|
|
|
|
23
|
|
Net cash provided by
operating activities
|
|
|
291,786
|
|
|
|
192,339
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(63,282)
|
|
|
|
(70,093)
|
|
Proceeds from sale of
assets
|
|
|
12,724
|
|
|
|
9,160
|
|
Changes in restricted
cash
|
|
|
(59,986)
|
|
|
|
4,499
|
|
Other
|
|
|
1,252
|
|
|
|
(1,009)
|
|
Net cash used in
investing activities
|
|
|
(109,292)
|
|
|
|
(57,443)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
|
1,305,000
|
|
|
|
-
|
|
Repayments of
long-term debt and capital lease obligations
|
|
|
(564,403)
|
|
|
|
(12,332)
|
|
Proceeds from exercise
of stock options
|
|
|
4,814
|
|
|
|
9,028
|
|
Tax impact from
equity-based compensation
|
|
|
17,775
|
|
|
|
27,583
|
|
Purchases of common
stock
|
|
|
(738,557)
|
|
|
|
(82,407)
|
|
Tax payments for
restricted stock upon vesting
|
|
|
(7,431)
|
|
|
|
(7,927)
|
|
Payments of common
stock dividends and equivalents
|
|
|
(80,329)
|
|
|
|
(52,843)
|
|
Cash paid for
financing costs
|
|
|
(17,367)
|
|
|
|
-
|
|
Other
|
|
|
(438)
|
|
|
|
-
|
|
Net cash used in
financing activities
|
|
|
(80,936)
|
|
|
|
(118,898)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
1,036
|
|
|
|
474
|
|
Change in cash and
cash equivalents
|
|
|
102,594
|
|
|
|
16,472
|
|
Cash and cash
equivalents, at beginning of period
|
|
|
30,855
|
|
|
|
14,383
|
|
Cash and cash
equivalents, at end of period
|
|
$
|
133,449
|
|
|
$
|
30,855
|
|
Logo -
http://photos.prnewswire.com/prnh/20120814/DE55948LOGO-b
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dominos-pizza-announces-2015-financial-results-300225861.html
SOURCE Domino's Pizza, Inc.