Papa John’s International, Inc. (NASDAQ: PZZA) today announced
financial results for the three months and full year ended December
25, 2016.
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Highlights
- GAAP earnings per diluted share of
$0.88 and adjusted earnings per diluted share of $0.69 in the
fourth quarter of 2016, excluding Special Items; adjusted earnings
per diluted share up 11% over 2015
- GAAP earnings per diluted share of
$2.74 and adjusted earnings per diluted share of $2.55 for full
year 2016, excluding Special Items; adjusted earnings per diluted
share up 22% over 2015 adjusted earnings per diluted share
- System-wide North America comparable
sales increases of 3.8% for the fourth quarter and 3.5% for the
full year
- International comparable sales
increases of 5.6% for the fourth quarter and 6.0% for the full
year
- 126 worldwide net unit openings in
the fourth quarter and 204 for the full year, of which 151 were
International and 53 were in North America
“We are pleased to have delivered another excellent year in
2016,” said Papa John’s founder, chairman and CEO, John Schnatter.
“Thanks to the efforts of the entire Papa John’s family, we opened
our 5,000th global unit and increased our digital mix to over 55%
-- all while delivering on our clear label promises and generating
strong comp sales and another year of record earnings.”
Fourth quarter 2016 revenues were $439.6 million, a 5.5%
increase from fourth quarter 2015 revenues of $416.8 million. Full
year 2016 revenues were $1.71 billion, a 4.7% increase from full
year 2015 revenues of $1.64 billion.
GAAP and adjusted net income and diluted earnings per share
(“EPS”) excluding Special Items results are summarized below:
Three Months Ended
Year Ended
Dec. 25,
2016
Dec. 27,
2015
Increase
%
Dec. 25,
2016
Dec. 27,
2015
Increase
%
GAAP net income $ 32,630 $ 24,695 32.1 % $ 102,820 $ 75,682
35.9 % Special items (7,022 ) - (7,022
) 7,986 Adjusted net income $ 25,608 $ 24,695
3.7 % $ 95,798 $ 83,668 14.5 % GAAP diluted EPS $
0.88 $ 0.62 41.9 % $ 2.74 $ 1.89 45.0 % Special items (0.19
) - (0.19 ) 0.20 Adjusted
diluted EPS $ 0.69 $ 0.62 11.3 % $ 2.55 $ 2.09 22.0 %
Special Items include a refranchising gain in 2016 from the sale
of the 42 restaurant Phoenix company-owned market to a franchisee,
an impairment charge in 2016 related to our company-owned stores in
China that are currently for sale, and the finalization of a 2015
legal settlement that was paid in 2016. See “Items Impacting
Comparability- Non-GAAP Presentation” table on page 8 for more
details.
Global Restaurant and Comparable Sales
Information
Three Months Ended
Year Ended
Dec. 25,
2016
Dec. 27,
2015
Dec. 25,
2016
Dec. 27,
2015
Global restaurant sales growth (a) 5.3 %
3.4
% 5.2 % 5.3 %
Global restaurant sales growth, excluding
the impact of foreign currency (a)
7.0 % 5.7 % 6.8 % 7.8 % Comparable sales growth (b) Domestic
company-owned restaurants 4.8 % 3.4 % 4.4 % 5.9 % North America
franchised restaurants 3.4 % 1.3 % 3.1 % 3.6 % System-wide North
America restaurants 3.8 % 1.9 % 3.5 % 4.2 % System-wide
international restaurants 5.6 % 5.3 % 6.0 % 6.9 %
(a) Includes both company-owned and franchised restaurant
sales.(b) Represents the change in year-over-year sales for the
same base of restaurants for the same fiscal periods. Comparable
sales results for restaurants operating outside of the United
States are reported on a constant dollar basis, which excludes the
impact of foreign currency translation.
We believe global restaurant and comparable sales growth
information, as defined in the table above, is useful in analyzing
our results since our franchisees pay royalties that are based on a
percentage of franchise sales. Franchise sales generate commissary
revenue in the United States and in certain international markets.
Global restaurant and comparable sales growth information is also
useful in analyzing industry trends and the strength of our brand.
Management believes the presentation of global restaurant sales
growth excluding the impact of foreign currency provides investors
with useful information regarding underlying sales trends by
presenting sales growth excluding the external factor of foreign
currency exchange. Franchise restaurant sales are not included in
company revenues.
Revenue and Operating
Highlights
All revenue and operating highlights below are compared to the
same period of the prior year, unless otherwise noted.
Revenue Highlights
Consolidated revenues increased $22.8 million, or 5.5%, for the
fourth quarter of 2016 and increased $76.2 million, or 4.7%, for
the year ended December 25, 2016. The increases in revenues were
primarily due to the following:
- Domestic company-owned restaurant sales
increased $14.0 million, or 7.2%, and $59.6 million, or 7.9%, for
the fourth quarter and full year 2016, respectively, primarily due
to increases of 4.8% and 4.4% in comparable sales and increases of
3.2% and 4.4% in equivalent units.
- North America franchise royalties and
fees increased approximately $1.6 million, or 6.3%, and $6.9
million, or 7.2%, for the fourth quarter and full year 2016,
respectively, primarily due to increases of 3.4% and 3.1% in
comparable sales and reduced levels of royalty incentives in
2016.
- North America commissary and other
sales increased $5.0 million, or 2.9%, and $1.3 million, or 0.2%,
for the fourth quarter and full year 2016, respectively. The
increases were primarily due to higher commissary sales from an
increase in volumes that were partially offset by lower commodity
costs. The increase for the full year was significantly offset by
the prior year’s inclusion of approximately $9.8 million of point
of sale equipment sales to franchisees which had no significant
impact on 2015 operating results.
- International revenues increased
approximately $2.3 million, or 8.9%, and $8.4 million, or 8.0%, for
the fourth quarter and full year 2016, respectively. These
increases were net of the unfavorable impact of foreign currency
exchange rates of $4.5 million and $12.2 million for the fourth
quarter and full year 2016, respectively. These increases were
primarily due to the following:
- International revenues for 2016 include
sublease rental revenue in the United Kingdom of approximately $1.7
million and $7.3 million for the fourth quarter and full year 2016,
respectively, which were shown net of the rental expenses in the
prior year.
- Royalties and commissary revenues were
higher due to an increase in the number of restaurants and
increases in comparable sales of 5.6% and 6.0% for the fourth
quarter and full year 2016, respectively, calculated on a constant
dollar basis.
- China Company-owned restaurant revenues
were $900,000 and $4.9 million lower for the fourth quarter and
full year 2016, respectively, primarily due to negative comparable
sales and fewer restaurants in 2016.
Operating Highlights
The tables below summarize income before income taxes on a
reporting segment basis for the fourth quarter and full year ended
December 25, 2016 and December 27, 2015, and reconcile our GAAP
financial results to the adjusted financial results, excluding
Special Items. See “Items Impacting Comparability- Non-GAAP
Presentation” table for more details.
Three Months Ended
Adjusted Adjusted Dec.
25, Special Dec. 25, Dec. 27,
Increase (In thousands)
2016 Items 2016
2015 (Decrease)
Domestic company-owned restaurants $ 28,048 $ (11,572 ) $ 16,476 $
15,267 $ 1,209 North America commissaries 11,786 - 11,786 12,027
(241 ) North America franchising 23,788 - 23,788 21,770 2,018
International 2,412 1,350 3,762 4,084 (322 ) All others 599 - 599
1,075 (476 ) Unallocated corporate expenses (15,020 ) (898 )
(15,918 ) (15,260 ) (658 ) Elimination of intersegment profits
(1,040 ) -
(1,040 ) (40 )
(1,000 ) Total income before income taxes
$ 50,573 $ (11,120 )
$ 39,453 $ 38,923
$ 530
Year
Ended
Adjusted
Adjusted Adjusted Dec. 25,
Special Dec. 25, Dec. 27, Special
Dec. 27, Increase (In thousands)
2016 Items 2016
2015 Items
2015 (Decrease) Domestic
company-owned restaurants $ 75,136 $ (11,572 ) $ 63,564 $ 56,452 $
- $ 56,452 $ 7,112 North America commissaries 46,325 - 46,325
44,721 - 44,721 1,604 North America franchising 91,669 - 91,669
83,315 - 83,315 8,354 International 11,408 1,350 12,758 10,891 -
10,891 1,867 All others 1,467 - 1,467 845 - 845 622 Unallocated
corporate expenses (64,791 ) (898 ) (65,689 ) (75,896 ) 12,278
(63,618 ) (2,071 ) Elimination of intersegment profits
(2,405 ) -
(2,405 ) (1,181 )
- (1,181 ) (1,224 ) Total
income before income taxes $ 158,809
$ (11,120 ) $ 147,689 $
119,147 $ 12,278 $ 131,425
$ 16,264
Fourth quarter 2016 income before income taxes increased
approximately $11.6 million, or 29.9%. When excluding the impact of
the Special Items in the fourth quarter of 2016, adjusted income
before income taxes increased approximately $500,000, or 1.4%. This
adjusted increase was primarily due to the following:
- Domestic company-owned restaurants
increased approximately $1.2 million primarily due to a 4.8%
increase in comparable sales, a 3.2% increase in equivalent units,
and lower commodity costs. This increase was partially offset by
increased labor costs and higher non-owned automobile claims
costs.
- North America commissaries income
decreased approximately $200,000 primarily due to a planned lower
margin, partially offset by higher sales volumes. We manage
commissary results on a full year basis and income can vary
somewhat by quarter.
- North America franchising income
increased approximately $2.0 million primarily due to higher
royalties attributable to the 3.4% increase in comparable sales and
lower sales and development incentives.
- International income decreased
approximately $300,000 primarily due to the negative impact of
foreign currency exchange rates and the timing of marketing spend
in the United Kingdom. Foreign currency exchange rates had a
negative impact of approximately $800,000, which was primarily
attributable to the United Kingdom. These decreases were
substantially offset by higher royalties from an increase in units
and an increase in comparable sales.
- Unallocated corporate expenses
increased approximately $700,000 primarily due to higher salaries
and benefits and higher interest costs due to an increase in
outstanding debt. These increases were partially offset by a
decrease in medical claims costs.
Full year 2016 income before income taxes increased
approximately $39.7 million, or 33.3%. When excluding the impact of
Special Items in both years, full year 2016 adjusted income before
income taxes increased approximately $16.3 million, or 12.4%. This
adjusted increase was primarily due to the following:
- Domestic company-owned restaurants
increased approximately $7.1 million primarily due to a 4.4%
increase in comparable sales, a 4.4% increase in equivalent units,
and lower commodity costs. These increases were partially offset by
higher non-owned automobile claim costs and increased labor
costs.
- North America commissaries income
increased approximately $1.6 million primarily due to higher sales
volumes.
- North America franchising income
increased approximately $8.4 million primarily due to higher
royalties attributable to the 3.1% increase in comparable sales and
lower sales and development incentives.
- International income increased
approximately $1.9 million primarily due to higher royalties from
an increase in units and an increase in comparable sales. This was
significantly offset by the negative impact of foreign currency
exchange rates of approximately $2.3 million and a non-recurring
charge of $800,000 to record our United Kingdom lease arrangements
on a straight line basis.
- Unallocated corporate expenses
increased approximately $2.1 million primarily due to higher
salaries and benefits, higher interest costs due to an increase in
outstanding debt, and increases in management incentive costs from
higher annual operating results. These increases were partially
offset by a decrease in medical claims costs.
The effective income tax rates were 32.2% and 31.3% for the
fourth quarter and full year ended December 25, 2016, respectively.
These rates approximated the effective rates for the fourth quarter
and full year ended December 27, 2015, respectively.
The company’s free cash flow, a non-GAAP financial measure, for
the full year of 2016 and 2015 was as follows (in thousands):
Full Year Ended Dec. 25
Dec. 27 2016 2015 Net cash
provided by operating activities (a) $ 144,057 $ 160,312 Purchases
of property and equipment (b) (55,554 ) (38,972 )
Free cash flow $ 88,503 $ 121,340
(a) The decrease of approximately $16.3 million was primarily
due to the payment of approximately $11.6 million for the
previously mentioned legal settlement and other unfavorable changes
in working capital items, partially offset by higher net income.(b)
The increase of $16.6 million was primarily due to construction
costs for our new domestic commissary in Georgia, which will open
in 2017, and initiatives within our online and mobile ordering
business.
We define free cash flow as net cash provided by operating
activities (from the consolidated statements of cash flows) less
the amounts spent on the purchase of property and equipment. We
view free cash flow as an important measure because it is a factor
that management uses in determining the amount of cash available
for discretionary investment. Free cash flow is not a term defined
by GAAP, and as a result, our measure of free cash flow might not
be comparable to similarly titled measures used by other companies.
Free cash flow should not be construed as a substitute for or a
better indicator of the company’s liquidity or performance than the
company’s GAAP measures.
See the Management’s Discussion and Analysis of Financial
Condition and Results of Operations section of our Annual Report on
Form 10-K filed with the Securities and Exchange Commission (SEC)
for additional information concerning our operating results and
cash flow for the full year ended December 25, 2016.
Global Restaurant Unit
Data
At December 25, 2016, there were 5,097 Papa John’s restaurants
operating in all 50 states and in 45 international countries and
territories, as follows:
Domestic
Company-
owned
Franchised
North
America
Total North
America
International
System-wide
Fourth
Quarter
Beginning -
September 25, 2016 736 2,675 3,411 1,560 4,971 Opened 3 38 41 109
150 Closed - (11 ) (11 ) (13 ) (24 ) Acquired 5 42 47 - 47 Sold (42
) (5 ) (47 ) -
(47 ) Ending - December 25, 2016 702
2,739 3,441 1,656
5,097
Year-to-date
Beginning - December 27, 2015 707 2,681 3,388 1,505 4,893 Opened 13
104 117 226 343 Closed (1 ) (63 ) (64 ) (75 ) (139 ) Acquired 25 42
67 - 67 Sold (42 ) (25 ) (67 )
- (67 ) Ending - December 25, 2016 702
2,739 3,441
1,656 5,097 Unit growth
(decline) (5 ) 58 53
151 204 % increase
(decrease) (0.7 %) 2.2 % 1.6 %
10.0 % 4.2 %
Our development pipeline as of December 25, 2016 included
approximately 1,300 restaurants (220 units in North America and
1,080 units internationally), the majority of which are scheduled
to open over the next six years.
Items Impacting Comparability –
Non-GAAP Presentation
The following table reconciles our GAAP financial results to our
adjusted financial results, which are non-GAAP measures, for the
fourth quarter and full year ended December 25, 2016 and December
27, 2015:
Three Months Ended
Full Year Ended Dec. 25, Dec.
27, Dec. 25, Dec. 27, (In
thousands, except per share amounts)
2016 2015
2016 2015 GAAP income before income taxes $
50,573 $ 38,923 $ 158,809 $ 119,147 Refranchising gain (11,572 ) -
(11,572 ) - Impairment loss on assets held for sale 1,350 - 1,350 -
Legal settlement (898 ) - (898 )
12,278 Income before income taxes, as adjusted $ 39,453 $
38,923 $ 147,689 $ 131,425 GAAP net income $ 32,630 $
24,695 $ 102,820 $ 75,682 Refranchising gain (7,308 ) - (7,308 ) -
Impairment loss on assets held for sale 853 - 853 - Legal
settlement (567 ) - (567 ) 7,986 Net
income, as adjusted $ 25,608 $ 24,695 $ 95,798 $
83,668 GAAP diluted earnings per share $ 0.88 $ 0.62 $ 2.74
$ 1.89 Refranchising gain (0.19 ) - (0.19 ) - Impairment loss on
assets held for sale 0.02 - 0.02 - Legal settlement (0.02 )
- (0.02 ) 0.20 Diluted earnings per share, as
adjusted $ 0.69 $ 0.62 $ 2.55 $ 2.09
Refranchising gain includes a gain in 2016 from the sale of the
42 restaurant Phoenix company–owned market to a franchisee.
Impairment loss includes a charge in 2016 related to our
company-owned stores in China that are for sale. The legal
settlement represents a charge in 2015 for a collective and class
action litigation, Perrin v. Papa John’s International, Inc. and
Papa John’s USA, Inc. The settlement amount was finalized and paid
in 2016 and the expense was adjusted in 2016 accordingly.
The non-GAAP adjusted results shown above, which exclude Special
Items referenced in the preceding paragraph, should not be
construed as a substitute for or a better indicator of the
company’s performance than the company’s GAAP results. Management
believes presenting the financial information excluding Special
Items is important for purposes of comparison to prior year
results. In addition, management uses this metric to evaluate the
company’s underlying operating performance, to analyze trends, and
to determine compensation.
Share Repurchase
Activity
The following table reflects our repurchases for the fourth
quarter and full year 2016 and subsequent repurchases through
February 14, 2017 (in thousands):
Period
Number
of Shares
Cost
Fourth Quarter 2016 158 $ 12,974 Full Year 2016 2,145
$ 122,381 December 26, 2016 through February 14, 2017 87 $
7,389
There were 37.3 million and 37.6 million diluted weighted
average shares outstanding for the fourth quarter and full year
ended December 25, 2016, representing decreases of 5.2% and 6.0%,
respectively, over the prior year comparable periods. Approximately
37.0 million actual shares of the company’s common stock were
outstanding as of December 25, 2016.
2017 Key Operating Assumptions and
Financial Outlook
In 2017, the Company is targeting the following performance:
- Diluted EPS growth of 8.0% - 12.0%,
including 53rd week, before considering the impact of new
equity-based compensation accounting guidance
- North America comparable sales of 2.0%
- 4.0%
- International comparable sales of 4.0%
- 6.0%
- Net global new unit growth of 4.0% -
5.0%; majority of growth will be in the second half of year.
- Capital Expenditures of $45 - $55
million
- Income tax rate of 31.0% - 33.0%,
excluding discrete items and the impact of the 2017 adoption of new
equity-based compensation accounting guidance
- Debt/EBITDA ratio of 1.5x - 2.0x
- Share repurchase and dividend programs
to continue as a means of returning a significant portion of our
free cash flow to investors
- Block cheese prices are projected to be
in the mid-$1.70’s
Conference Call and Website
Information
A conference call is scheduled for February 22, 2017 at 10:00
a.m. Eastern Time to review our fourth quarter and full year 2016
earnings results. The call can be accessed from the company’s web
page at www.papajohns.com in a listen-only mode, or dial
877-312-8816 (U.S. and Canada) or 253-237-1189 (international). The
conference call will be available for replay, including by
downloadable podcast, from the company’s web site at
www.papajohns.com. The Conference ID is 46802412.
Investors and others should note that we announce material
financial information to our investors using our investor relations
website, press releases, SEC filings and public conference calls
and webcasts. We intend to use our investor relations website as a
means of disclosing information about our business, our financial
condition and results of operations and other matters and for
complying with our disclosure obligations under Regulation FD. The
information we post on our investor relations website, including
information contained in investor presentations, may be deemed
material. Accordingly, investors should monitor our investor
relations website, in addition to following our press releases, SEC
filings and public conference calls and webcasts. We encourage
investors and others to sign up for email alerts at our investor
relations page under Shareholder Tools at the bottom right side of
the page. These email alerts are intended to help investors and
others to monitor our investor relations website by notifying them
when new information is posted on the site.
Forward-Looking
Statements
Certain matters discussed in this press release and other
company communications constitute forward-looking statements within
the meaning of the federal securities laws. Generally, the use of
words such as “expect,” “intend,” “estimate,” “believe,”
“anticipate,” “will,” “forecast,” “plan,” “project,” or similar
words identify forward-looking statements that we intend to be
included within the safe harbor protections provided by the federal
securities laws. Such forward-looking statements may relate to
projections or guidance concerning business performance, revenue,
earnings, cash flow, contingent liabilities, resolution of
litigation, commodity costs, profit margins, unit growth, unit
level performance, capital expenditures, and other financial and
operational measures. Such statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions, which are difficult to predict and many of which are
beyond our control. Therefore, actual outcomes and results may
differ materially from those matters expressed or implied in such
forward-looking statements. The risks, uncertainties and
assumptions that are involved in our forward-looking statements
include, but are not limited to:
- aggressive changes in pricing or other
marketing or promotional strategies by competitors, which may
adversely affect sales and profitability; and new product and
concept developments by food industry competitors;
- changes in consumer preferences or
consumer buying habits, including changes in general economic
conditions or other factors that may affect consumer confidence and
discretionary spending;
- the adverse impact on the company or
our results caused by product recalls, food quality or safety
issues, incidences of foodborne illness, food contamination and
other general public health concerns about our company-owned or
franchised restaurants or others in the restaurant industry;
- failure to maintain our brand strength,
quality reputation and consumer enthusiasm for our better
ingredients marketing and advertising strategy;
- the ability of the company and its
franchisees to meet planned growth targets and operate new and
existing restaurants profitably, including difficulties finding
qualified franchisees, store level employees or suitable
sites;
- increases in food costs or sustained
higher other operating costs. This could include increased employee
compensation, benefits, insurance, tax rates, new regulatory
requirements or increasing compliance costs;
- increases in insurance claims and
related costs for programs funded by the company up to certain
retention limits, including medical, owned and non-owned
automobiles, workers’ compensation, general liability and
property;
- disruption of our supply chain or
commissary operations which could be caused by our sole source of
supply of cheese or limited source of suppliers for other key
ingredients or more generally due to weather, natural disasters
including drought, disease, or geopolitical or other disruptions
beyond our control;
- increased risks associated with our
international operations, including economic and political
conditions, instability or uncertainty in our international
markets, especially emerging markets, fluctuations in currency
exchange rates, difficulty in meeting planned sales targets and new
store growth, and;
- the impact of current or future claims
and litigation, including labor and employment-related claims;
- current, proposed or future legislation
that could impact our business;
- failure to effectively execute
succession planning, and our reliance on the multiple roles of our
founder, chairman and chief executive officer, who also serves as
our brand spokesperson;
- disruption of critical business or
information technology systems, or those of our suppliers, and
risks associated with systems failures and data privacy and
security breaches, including theft of confidential company,
employee and customer information, including payment cards;
and
- changes in accounting principles
generally accepted in the United States or “GAAP,” including new
standards for accounting for share-based compensation that may
result in changes to our net income. Based on recent share prices,
the impact of the 2017 adoption of this guidance would be favorable
in 2017.
These and other risk factors are discussed in detail in “Part I.
Item 1A. – Risk Factors” in our Annual Report on Form 10-K for the
fiscal year ended December 25, 2016. We undertake no obligation to
update publicly any forward-looking statements, whether as a result
of future events, new information or otherwise, except as required
by law.
For more information about the company, please
visit www.papajohns.com.
Papa John's International, Inc. and
Subsidiaries Condensed Consolidated Statements of Income
Three Months Ended Year Ended
December 25, 2016 December 27, 2015
December 25, 2016 December 27, 2015 (In
thousands, except per share amounts)
(Unaudited)
(Unaudited) Revenues: Domestic company-owned
restaurant sales $ 206,963 $ 192,999 $ 815,931 $ 756,307 North
America franchise royalties and fees 26,426 24,871 102,980 96,056
North America commissary and other sales 177,983 173,008 681,606
680,321 International 28,247
25,938 113,103 104,691
Total revenues 439,619 416,816 1,713,620 1,637,375
Costs and expenses:
Operating costs (excluding depreciation
and amortization shown separately below):
Domestic company-owned restaurant expenses 165,007 153,282 651,536
604,206 North America commissary and other expenses 164,859 159,169
631,475 629,423 International expenses 17,573 15,297 71,509 63,506
General and administrative expenses 40,393 39,170 163,812 163,626
Depreciation and amortization 10,598
9,669 40,987
40,307
Total costs and expenses 398,430 376,587
1,559,319 1,501,068
Refranchising and impairment
gains/(losses), net
10,222 - 10,222
-
Operating income 51,411
40,229 164,523 136,307 Legal settlement expense 898 - 898 (12,278 )
Net interest expense (1,736 ) (1,306 )
(6,612 ) (4,882 )
Income before
income taxes 50,573 38,923 158,809 119,147 Income tax expense
16,294 12,642
49,717 37,183
Net income
before attribution to noncontrolling interests 34,279 26,281
109,092 81,964 Income attributable to noncontrolling interests
(1,649 ) (1,586 ) (6,272 )
(6,282 )
Net income attributable to the
company $ 32,630 $ 24,695 $ 102,820
$ 75,682
Calculation of
income for earnings per share: Net income attributable to the
company $ 32,630 $ 24,695 $ 102,820 $ 75,682 Change in
noncontrolling interest redemption value 225 (127 ) 567 65 Net
income attributable to participating securities (132 )
(102 ) (420 ) (325
) Net income attributable to common shareholders $ 32,723
$ 24,466 $ 102,967 $
75,422 Basic earnings per common share $ 0.89
$ 0.63 $ 2.76 $ 1.91
Diluted earnings per common share $ 0.88
$ 0.62 $ 2.74 $ 1.89
Basic weighted average common shares outstanding
36,892 38,909 37,253
39,458 Diluted weighted average
common shares outstanding 37,311
39,367 37,608 40,000
Dividends declared per common share $ 0.200 $ 0.175 $
0.750 $ 0.630
Papa John's International, Inc. and
Subsidiaries Condensed Consolidated Balance Sheets
December 25, December 27,
2016 2015 (In thousands)
Assets Current assets: Cash and cash equivalents $
15,563 $ 21,006 Accounts receivable, net 59,691 63,320 Notes
receivable, net 3,417 7,816 Income taxes receivable 2,372 272
Inventories 25,132 21,564 Prepaid expenses and other current assets
33,143 29,313 Assets held for sale 6,257 9,299
Total current assets 145,575 152,590 Property and
equipment, net 230,473 214,044 Notes receivable, less current
portion, net 10,141 11,105 Goodwill 85,529 79,657 Deferred income
taxes 769 2,415 Other assets 40,078 34,247
Total
assets $ 512,565 $ 494,058
Liabilities and
stockholders' equity Current liabilities: Accounts
payable $ 42,701 $ 43,492 Income and other taxes payable 8,540
8,527 Accrued expenses and other current liabilities 76,789
80,918
Total current liabilities 128,030 132,937
Deferred revenue 3,313 3,190 Long-term debt, net 299,820
255,146 Deferred income taxes 10,047 4,610 Other long-term
liabilities 53,093 47,606
Total liabilities
494,303 443,489 Redeemable noncontrolling interests 8,461
8,363
Total stockholders' equity 9,801
42,206
Total liabilities, redeemable noncontrolling interests
and stockholders' equity $ 512,565 $ 494,058
Note: The Condensed Consolidated Balance
Sheets have been derived from the audited consolidated financial
statements, but do not include all information and footnotes
required by accounting principles generally accepted in the United
States for a complete set of financial statements.
Papa John's International, Inc. and
Subsidiaries Consolidated Statements of Cash Flows
Year Ended (In thousands)
December 25, 2016 December 27, 2015
Operating activities Net income before attribution to
noncontrolling interests $ 109,092 $ 81,964
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for uncollectible accounts and notes receivable 409 1,232
Depreciation and amortization 40,987 40,307 Deferred income taxes
11,624 (6,246 ) Stock-based compensation expense 10,123 9,423
Refranchising gain (11,572 ) - Impairment loss 1,350 - Other 3,337
4,633 Changes in operating assets and liabilities, net of
acquisitions: Accounts receivable 1,557 (9,179 ) Income taxes
receivable (2,100 ) 9,255 Inventories (3,639 ) 4,967 Prepaid
expenses and other current assets (3,210 ) (1,596 ) Other assets
and liabilities (6,269 ) 620 Accounts payable (916 ) 4,804 Income
and other taxes payable 9 (1,113 ) Accrued expenses and other
current liabilities (7,960 ) 21,201 Deferred revenue 1,235
40
Net cash provided by operating
activities 144,057 160,312
Investing activities
Purchases of property and equipment (55,554 ) (38,972 ) Loans
issued (3,210 ) (4,741 ) Repayments of loans issued 8,569 5,183
Acquisitions, net of cash acquired (13,352 ) (922 ) Proceeds from
divestiture of restaurants 16,844 - Other 429
500
Net cash used in investing activities (46,274 )
(38,952 )
Financing activities Net proceeds on line
of credit facility 44,575 25,549 Cash dividends paid (27,896 )
(24,844 ) Excess tax benefit on equity awards 6,200 10,151 Tax
payments for equity award issuances (6,024 ) (10,965 ) Proceeds
from exercise of stock options 7,060 5,197 Acquisition of Company
common stock (122,381 ) (119,793 ) Contributions from
noncontrolling interest holders 690 684 Distributions to
noncontrolling interest holders (5,610 ) (6,550 ) Other 556
444
Net cash used in financing
activities (102,830 ) (120,127 ) Effect of exchange rate
changes on cash and cash equivalents (396 ) (349 )
Change in cash and cash equivalents (5,443 ) 884 Cash and cash
equivalents at beginning of period 21,006
20,122
Cash and cash equivalents at end of
period $ 15,563 $ 21,006
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version on businesswire.com: http://www.businesswire.com/news/home/20170221006371/en/
Papa John’s International, Inc.Lance Tucker, 502-261-7272Chief
Financial Officer
Papa Johns (NASDAQ:PZZA)
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