Papa Murphy’s Holdings, Inc. Announces Preliminary Full Year 2016 and Fourth-Quarter 2016 Operating Results
January 09 2017 - 04:05PM
Papa Murphy’s Holdings, Inc. (NASDAQ:FRSH), ahead of its
participation in the 19th annual ICR Conference, today announced
preliminary, unaudited sales results for the fourteen-week fourth
quarter and fifty-three week fiscal year ended January 2, 2017.
- The Company estimates total revenue of approximately $35.5
million for the fourth quarter and approximately $126.9 million for
fiscal 2016.
- Domestic system-wide comparable store sales are estimated to
have decreased 7.8% for the quarter and decreased 5.2% for the full
fiscal year.
- System-wide, 27 new stores opened during the quarter, bringing
domestic new unit development for fiscal 2016 to 104, compared to
99 domestic new store openings in fiscal 2015.
- At year end, net debt(1) was approximately $106.8 million,
compared to net debt of $111.6 million at the end of the third
quarter of 2016.
______________________
(1) Net debt is a non-GAAP measure. For a reconciliation of net
debt to GAAP long-term debt and discussion of why we consider net
debt to be a useful measure, see the financial table accompanying
this release and the paragraph below entitled “Non-GAAP Financial
Measure.”
Jean Birch, Chair of the Board and Interim Chief
Executive Officer of Papa Murphy’s Holdings, Inc., stated, “While
we are disappointed that our fourth quarter sales remained under
pressure, we continue to execute against long-term strategic
initiatives, such as the launch of our online ordering platform,
the refranchising of company stores, and our first ever national ad
campaign which debuts in the first quarter of 2017. While the
environment remains competitive, we believe these initiatives,
along with our return to traditional marketing messaging and a
focus on new product innovation will drive positive results in the
future.”
Preliminary results remain subject to the
completion of normal year-end and quarter-end accounting procedures
and adjustments and are subject to change. The Company expects to
release financial and operating results for its fourteen-week
fourth quarter and fifty-three week fiscal 2016 ended January 2,
2017 in March of 2017.
ICR ConferenceOn Tuesday,
January 10, 2017, the Company will present at the 19th Annual ICR
Conference at the Grande Lakes Orlando Resort in Florida at 11:30
AM EST. Investors and interested parties may listen to a live
webcast of this presentation from the corporate website at
www.papamurphys.com under the “Investor Relations” tab, or directly
through the ICR Conference website www.icrconference.com.
About Papa Murphy'sPapa
Murphy's Holdings, Inc. (NASDAQ:FRSH) is a franchisor and operator
of the largest Take ‘n’ Bake pizza brand in the United States,
selling fresh, hand-crafted pizzas ready for customers to bake at
home. The company was founded in 1981 and currently operates more
than 1,575 franchised and corporate-owned fresh pizza stores in 38
States, Canada and United Arab Emirates. Papa Murphy's core purpose
is to bring all families together through food people love with a
goal to create fun, convenient and fulfilling family dinners. In
addition to scratch-made pizzas, the company offers a growing menu
of grab 'n' go items, including salads, sides and desserts. Order
online today at www.papamurphys.com.
Forward-looking StatementsThis
news release, as well as other information provided from time to
time by Papa Murphy's Holdings, Inc. or its employees, may contain
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those
anticipated in the forward-looking statements. Forward-looking
statements give the Company's current expectations and projections
relating to the Company's financial condition, results of
operations, plans, objectives, future performance and business. You
can identify forward-looking statements by the fact that they do
not relate strictly to historical or current facts. These
statements may include words such as “guidance,” “anticipate,”
“estimate,” “expect,” “forecast,” “project,” “plan,” “intend,”
“believe,” “confident,” “may,” “should,” “can have,” “likely,”
“future” and other words and terms of similar meaning in connection
with any discussion of the timing or nature of future operating or
financial performance or other events.
Forward-looking statements in this press release
include statements relating to the Company’s estimated revenues,
same store sales, and net debt for the fiscal quarter and fiscal
year ended January 2, 2017, and expected future results of
operations. Any such forward-looking statements are not
guarantees of performance or results, and involve risks,
uncertainties (some of which are beyond the Company's control) and
assumptions. Although the Company believes any forward-looking
statements are based on reasonable assumptions, you should be aware
that many factors could affect our actual financial results and
cause them to differ materially from those anticipated in any
forward-looking statements. Please refer to the risk factors
discussed in the Company’s annual report on Form 10-K for the
fiscal year ended December 28, 2015 and
quarterly reports on Forms 10-Q for the fiscal quarters ended
March 28, 2016 and September 26, 2016 (each of which can
be found at the SEC’s website www.sec.gov); each such risk factor
is specifically incorporated into this press release. Should one or
more of these risks or uncertainties materialize, the Company's
actual results may vary in material respects from those projected
in any forward-looking statements.
Any forward-looking statement made by the
Company in this press release speaks only as of the date on which
it is made. The Company undertakes no obligation to update any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
Non-GAAP Financial Measure
To supplement its financial information
presented in accordance with generally accepted accounting
principles (GAAP), the Company is also providing with this press
release the non-GAAP financial measure of net debt. Net debt is
calculated by subtracting cash and cash equivalents from long-term
debt (including the current portion of long-term debt). Net debt is
not derived in accordance with GAAP and should not be considered by
the reader as an alternative to long-term debt (the most directly
comparable GAAP financial measure to net debt). The Company’s
management believes that net debt is useful to investors because
net debt reflects cash and cash equivalents available to service
the Company's debt. We have provided a reconciliation of net debt
to long-term debt in the financial table accompanying this
release.
PAPA MURPHY’S HOLDINGS, INC. AND
SUBSIDIARIES |
Net Debt Reconciliation |
(In millions of dollars) |
(unaudited) |
|
|
January 2, 2017 |
|
September 26, 2016 |
Term loan |
$ |
105.9 |
|
|
$ |
105.9 |
|
Revolving line of
credit |
0.8 |
|
|
4.1 |
|
Note payable |
3.0 |
|
|
3.0 |
|
Total
principal amount of long-term debt |
109.7 |
|
|
113.0 |
|
Unamortized debt
issuance costs |
(0.8 |
) |
|
(0.9 |
) |
Total
long-term debt |
108.9 |
|
|
112.1 |
|
Cash |
(2.1 |
) |
|
(0.5 |
) |
Net
debt |
106.8 |
|
|
111.6 |
|
Investor Contact:
Fitzhugh Taylor or Alexis Tessier, ICR
alexis.tessier@icrinc.com
877-747-7272
Media Contact:
Christine Beggan, ICR
Christine.Beggan@icrinc.com
203-682-8329
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