ANN ARBOR, Mich., Oct. 8, 2020 /PRNewswire/ -- Domino's
Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world
based on global retail sales, announced results for the third
quarter. Global retail sales increased 14.4% in the third quarter,
or 14.8% excluding foreign currency impact. U.S. same store sales
grew 17.5% during the quarter versus the year-ago period and were
positively impacted by customer ordering behavior during the
COVID-19 pandemic, continuing the positive sales momentum in the
Company's U.S. stores business. The international business also
posted positive same store sales results, with growth of 6.2%
during the quarter. The third quarter marked the 107th
consecutive quarter of international same store sales growth and
the 38th consecutive quarter of U.S. same store sales
growth.
During the quarter, the Company reported 209 gross new stores
and 83 net new stores, comprised of 44 net new U.S. stores and 39
net new international stores. The Company's net store growth
reflects the closure of 126 stores, primarily in India. The number of temporary store closures
in certain of the Company's international markets declined during
the third quarter of 2020. Based on information reported to the
Company by its master franchisees, the Company estimates that as of
October 5, 2020, there were fewer
than 300 international stores temporarily closed.
Diluted EPS for the third quarter was $2.49, up 21.5% over the prior year quarter.
On October 6, 2020, the Company's
Board of Directors declared a $0.78
per share quarterly dividend for shareholders of record as of
December 15, 2020 to be paid on
December 30, 2020.
"I am extremely proud of our global franchisees, operators and
corporate teams for their relentless passion and energy as we
continue to navigate through the pandemic," said Ritch Allison, Domino's Chief Executive Officer.
"Our strong third quarter results once again demonstrated our focus
on value, service, quality and innovation to meet customer
needs."
Third Quarter
Highlights (Unaudited):
|
(dollars in
millions, except per share data)
|
|
Third
Quarter
of
2020
|
|
|
Third
Quarter
of
2019
|
|
|
Three
Fiscal
Quarters
of
2020
|
|
|
Three
Fiscal
Quarters
of
2019
|
|
Net
income
|
|
$
|
99.1
|
|
|
$
|
86.4
|
|
|
$
|
339.4
|
|
|
$
|
271.4
|
|
Weighted average
diluted shares
|
|
|
39,791,805
|
|
|
|
42,040,291
|
|
|
|
39,724,289
|
|
|
|
42,158,447
|
|
Diluted
EPS
|
|
$
|
2.49
|
|
|
$
|
2.05
|
|
|
$
|
8.54
|
|
|
$
|
6.44
|
|
- Revenues increased $146.9
million, or 17.9%, in the third quarter of 2020. This
increase was primarily due to higher U.S. retail sales resulting
from same store sales growth and an increase in store counts during
the trailing four quarters, resulting in higher supply chain, U.S.
franchise and U.S. Company-owned stores revenues.
- Net Income increased $12.8
million, or 14.8%, in the third quarter of 2020. This
increase was primarily driven by higher income from operations
resulting from increased U.S. franchise revenues as well as higher
supply chain volumes, partially offset by higher variable
performance-based compensation expense as well as COVID-related
costs, including additional compensation and enhanced sick pay for
frontline workers. A lower effective tax rate as compared to the
prior year quarter driven by higher tax benefits from equity-based
compensation also resulted in an increase in net income. The
increase in net income was partially offset by higher net interest
expense resulting from a higher average debt balance and to a
lesser extent, borrowings under the Company's variable funding
notes.
- Diluted EPS was $2.49 for
the third quarter of 2020 versus $2.05 in the prior year quarter. This represents
a $0.44, or 21.5%, increase over the
prior year quarter. The increase in diluted EPS was driven by
higher net income, as well as a lower weighted average diluted
share count, primarily resulting from the Company's share
repurchases during the trailing four quarters.
The table below outlines certain statistical measures utilized
by the Company to analyze its performance (unaudited). Refer to the
Comments on Regulation G section below for additional
details.
|
|
Third
Quarter
of
2020
|
|
|
Third
Quarter
of
2019
|
|
Same store sales
growth: (versus prior year period)
|
|
|
|
|
|
|
|
|
U.S. Company-owned
stores
|
|
|
+ 16.6
|
%
|
|
|
+ 1.7
|
%
|
U.S. franchise
stores
|
|
|
+ 17.5
|
%
|
|
|
+ 2.5
|
%
|
U.S. stores
|
|
|
+ 17.5
|
%
|
|
|
+ 2.4
|
%
|
International stores
(excluding foreign currency impact)
|
|
|
+
6.2
|
%
|
|
|
+ 1.7
|
%
|
|
|
|
|
|
|
|
|
|
Global retail
sales growth: (versus prior year period)
|
|
|
|
|
|
|
|
|
U.S. stores
|
|
|
+ 21.3
|
%
|
|
|
+ 6.0
|
%
|
International
stores
|
|
|
+
7.7
|
%
|
|
|
+ 5.7
|
%
|
Total
|
|
|
+ 14.4
|
%
|
|
|
+ 5.8
|
%
|
|
|
|
|
|
|
|
|
|
Global retail
sales growth: (versus prior year period,
excluding foreign currency impact)
|
|
|
|
|
|
|
|
|
U.S. stores
|
|
|
+ 21.3
|
%
|
|
|
+ 6.0
|
%
|
International
stores
|
|
|
+
8.5
|
%
|
|
|
+ 9.1
|
%
|
Total
|
|
|
+ 14.8
|
%
|
|
|
+ 7.5
|
%
|
|
|
U.S.
Company-
owned
Stores
|
|
|
U.S.
Franchise
Stores
|
|
|
Total
U.S.
Stores
|
|
|
International
Stores
|
|
|
Total
|
|
Store
counts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store count at June
14, 2020
|
|
|
346
|
|
|
|
5,849
|
|
|
|
6,195
|
|
|
|
10,978
|
|
|
|
17,173
|
|
Openings
|
|
|
2
|
|
|
|
45
|
|
|
|
47
|
|
|
|
162
|
|
|
|
209
|
|
Closings
(1)
|
|
|
—
|
|
|
|
(3)
|
|
|
|
(3)
|
|
|
|
(123)
|
|
|
|
(126)
|
|
Store count at
September 6, 2020
|
|
|
348
|
|
|
|
5,891
|
|
|
|
6,239
|
|
|
|
11,017
|
|
|
|
17,256
|
|
Third quarter 2020 net
store growth
|
|
|
2
|
|
|
|
42
|
|
|
|
44
|
|
|
|
39
|
|
|
|
83
|
|
Trailing four quarters
net store growth
|
|
|
15
|
|
|
|
239
|
|
|
|
254
|
|
|
|
474
|
|
|
|
728
|
|
|
|
(1)
|
Temporary store
closures are not treated as store closures and affected stores are
included in the ending store count.
|
Conference Call Information
The Company will file its
Quarterly Report on Form 10-Q this morning. As previously
announced, Domino's Pizza, Inc. will hold a conference call
today at 10 a.m. (Eastern) to
review its third quarter 2020 financial results. The call can be
accessed by dialing (866) 470-5929 (U.S./Canada) or (409) 217-8311 (International). Ask
for the Domino's Pizza conference call, ID 1768067. The call will
also be webcast, and will be archived for one year, on
biz.dominos.com.
Liquidity and Use of Cash Update
As of September 6, 2020, the Company had approximately:
- $330.7 million of unrestricted
cash and cash equivalents;
- $4.11 billion in total debt;
and
- $160.0 million of available
borrowings under its $200.0 million
variable funding notes, net of letters of credit issued of
$40.0 million and borrowings
outstanding of less than $0.1
million.
As previously disclosed, given the market uncertainty arising
from COVID-19, the Company took a precautionary measure and
borrowed $158.0 million under its
variable funding notes in the second quarter of 2020. The Company
repaid $100.0 million of these
borrowings in the second quarter of 2020 and approximately
$58.0 million in the third quarter of
2020.
Net cash provided by operating activities was $370.4 million during the three fiscal quarters
of 2020. The Company invested $51.2
million in capital expenditures during the three fiscal
quarters of 2020. Free cash flow, as reconciled below to net cash
provided by operating activities, as determined under accounting
principles generally accepted in the
United States of America ("GAAP"), was approximately
$319.2 million during the three
fiscal quarters of 2020 (refer to the Comments on Regulation
G section below for additional details).
(in
thousands)
|
|
Three
Fiscal
Quarters
of
2020
|
|
Net cash provided by
operating activities
|
|
$
|
370,399
|
|
Capital
expenditures
|
|
|
(51,163)
|
|
Free cash
flow
|
|
$
|
319,236
|
|
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, including free cash flow
metrics. The Company has also included metrics such as global
retail sales, global retail sales growth, global retail sales
growth, excluding foreign currency impact 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 "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 and
advertising fees 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. "Global
retail sales growth" is calculated as the change of U.S. Dollar
global retail sales against the comparable period of the prior
year. "Global retail sales growth, excluding foreign currency
impact" is calculated as the change of international local
currency global retail sales against the comparable period of the
prior year.
The Company uses "Same store sales growth," which is
calculated for a given period by including only sales from stores
that had sales in the comparable weeks of both
years. International same store sales growth is calculated
similarly to U.S. 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
net cash provided by operating activities, 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 or paying dividends.
About Domino's Pizza®
Founded in 1960, Domino's Pizza is the largest pizza company in
the world based on retail sales. It ranks among the world's top
restaurant brands with a global enterprise of more than 17,200
stores in over 90 markets. Domino's had global retail sales of more
than $14.3 billion in 2019, with over
$7.0 billion in the U.S. and nearly
$7.3 billion internationally. In the
third quarter of 2020, Domino's had global retail sales of more
than $3.7 billion, with over
$1.9 billion in the U.S. and nearly
$1.8 billion internationally. Its
system is comprised of independent franchise owners who accounted
for 98% of Domino's stores as of the end of the third quarter of
2020. Emphasis on technology innovation helped Domino's achieve
more than half of all global retail sales in 2019 from digital
channels. In the U.S., Domino's generated more than 65% of sales in
2019 via digital channels and has developed several innovative
ordering platforms, including those for Google Home, Facebook
Messenger, Apple Watch, Amazon Echo, Twitter and more. In 2019,
Domino's announced a partnership with Nuro to further its
exploration and testing of autonomous pizza delivery. In mid-2020,
Domino's launched a new way to order contactless carryout
nationwide – via Domino's Carside Delivery™, which customers can
choose when placing a prepaid online order.
Order – dominos.com
Company Info – biz.dominos.com
Media Assets – media.dominos.com
Please visit our Investor Relations website at biz.dominos.com
to view news, announcements, earnings releases, investor
presentations and conference webcasts.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:
This press release contains various forward-looking statements
about the Company within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Act") that are based on current
management expectations that involve substantial risks and
uncertainties which could cause actual results to differ materially
from the results expressed in, or implied by, these forward-looking
statements. The following cautionary statements are being made
pursuant to the provisions of the Act and with the intention of
obtaining the benefits of the "safe harbor" provisions of the Act.
You can identify forward-looking statements by the use of words
such as "anticipates," "believes," "could," "should," "estimates,"
"expects," "intends," "may," "will," "plans," "predicts,"
"projects," "seeks," "approximately," "potential," "outlook" and
similar terms and phrases that concern our strategy, plans or
intentions, including references to assumptions. These
forward-looking statements address various matters including
information concerning future results of operations and business
strategy, our anticipated profitability, estimates in same store
sales growth, the growth of our U.S. and 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. While we
believe these expectations and projections are based on reasonable
assumptions, such forward-looking statements are inherently subject
to risks, uncertainties and assumptions. Important factors that
could cause actual results to differ materially from our
expectations are more fully described in our filings with the
Securities and Exchange Commission, including under the section
headed "Risk Factors" in our Annual Report on Form 10-K for the
fiscal year ended December 29, 2019
and Quarterly Reports on Form 10-Q for the quarterly periods ended
March 22, 2020, June 14, 2020 and September 6, 2020. Actual results may differ
materially from those expressed or implied in the forward-looking
statements as a result of various factors, including but not
limited to: our substantial increased indebtedness as a result of
our recapitalization transactions and our ability to incur
additional indebtedness or refinance or renegotiate key terms of
that indebtedness in the future; the impact a downgrade in our
credit rating may have on our business, financial condition and
results of operations; our future financial performance and our
ability to pay principal and interest on our indebtedness; the
effectiveness of our advertising, operations and promotional
initiatives; the strength of our brand, including our ability to
compete in the U.S. and internationally in our intensely
competitive industry, including the food service and food delivery
markets; our ability to manage difficulties associated with or
related to the COVID-19 pandemic and the effects of COVID-19 on our
business and supply chain; the impact of social media and other
consumer-oriented technologies on our business, brand and
reputation; new product, digital ordering and concept developments
by us, and other food-industry competitors; the impact of new or
improved technologies and alternative methods of delivery on
consumer behavior; our ability to maintain good relationships with
and attract new franchisees, and franchisees' ability to profitably
manage their operations without negatively impacting our brand's
reputation; our ability to successfully implement cost-saving
strategies; our ability and that of our franchisees to successfully
operate in the current and future credit environment; changes in
the level of consumer spending given general economic conditions,
including interest rates, energy prices and consumer confidence;
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), fuel and other commodity costs, labor, utilities,
insurance, employee benefits and other operating costs; the impact
that widespread illness, health epidemics or general health
concerns, severe weather conditions and natural disasters may have
on our business and the economies of the countries where we
operate; changes in foreign currency exchange rates; our ability to
retain or replace our executive officers and other key members of
management and our ability to adequately staff our stores and
supply chain centers with qualified personnel; our ability to find
and/or retain suitable real estate for our stores and supply chain
centers; changes in government legislation and regulations,
including changes in laws and regulations regarding information
privacy, payment methods consumer protection and social media;
adverse legal judgments or settlements; food-borne illness or
contamination of products; data breaches, power loss, technological
failures, user error or other cyber risks threatening us or our
franchisees; the effect of war, terrorism, catastrophic events or
climate change; our ability to pay dividends and repurchase shares;
changes in consumer preferences, spending and traffic patterns and
demographic trends; actions by activist investors; changes in
accounting policies; and adequacy of our insurance coverage. In
light of these risks, uncertainties and assumptions, the
forward-looking events discussed in this press release might not
occur. All forward-looking statements speak only as of the date of
this press release and should be evaluated with an understanding of
their inherent uncertainty. Except as required under federal
securities laws and the rules and regulations of the Securities and
Exchange Commission, or other applicable law, we will not
undertake, and specifically disclaim, any obligation to publicly
update or revise any forward-looking statements to reflect events
or circumstances arising after the date of this press release,
whether as a result of new information, future events or otherwise.
You are cautioned not to place undue reliance on the
forward-looking statements included in this press release or that
may be made elsewhere from time to time by, or on behalf of, us.
All forward-looking statements attributable to us are expressly
qualified by these cautionary statements.
TABLES TO FOLLOW
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Income (Unaudited)
|
|
|
|
Fiscal Quarter
Ended
|
|
|
|
September 6,
2020
|
|
|
%
of
Total
Revenues
|
|
|
September
8,
2019
|
|
|
%
of
Total
Revenues
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Company-owned
stores
|
|
$
|
113,254
|
|
|
|
|
|
|
$
|
94,575
|
|
|
|
|
|
U.S. franchise
royalties and fees
|
|
|
118,054
|
|
|
|
|
|
|
|
97,047
|
|
|
|
|
|
Supply
chain
|
|
|
573,661
|
|
|
|
|
|
|
|
485,110
|
|
|
|
|
|
International
franchise royalties and fees
|
|
|
54,602
|
|
|
|
|
|
|
|
54,586
|
|
|
|
|
|
U.S. franchise
advertising
|
|
|
108,148
|
|
|
|
|
|
|
|
89,494
|
|
|
|
|
|
Total
revenues
|
|
|
967,719
|
|
|
|
100.0
|
%
|
|
|
820,812
|
|
|
|
100.0
|
%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Company-owned
stores
|
|
|
90,788
|
|
|
|
|
|
|
|
71,610
|
|
|
|
|
|
Supply
chain
|
|
|
514,950
|
|
|
|
|
|
|
|
432,951
|
|
|
|
|
|
Total cost of
sales
|
|
|
605,738
|
|
|
|
62.6
|
%
|
|
|
504,561
|
|
|
|
61.5
|
%
|
Operating
margin
|
|
|
361,981
|
|
|
|
37.4
|
%
|
|
|
316,251
|
|
|
|
38.5
|
%
|
General and
administrative
|
|
|
91,652
|
|
|
|
9.4
|
%
|
|
|
83,728
|
|
|
|
10.2
|
%
|
U.S. franchise
advertising
|
|
|
108,148
|
|
|
|
11.2
|
%
|
|
|
89,494
|
|
|
|
10.9
|
%
|
Income from
operations
|
|
|
162,181
|
|
|
|
16.8
|
%
|
|
|
143,029
|
|
|
|
17.4
|
%
|
Interest expense,
net
|
|
|
(38,408)
|
|
|
|
(4.0)
|
%
|
|
|
(32,784)
|
|
|
|
(4.0)
|
%
|
Income before
provision for income taxes
|
|
|
123,773
|
|
|
|
12.8
|
%
|
|
|
110,245
|
|
|
|
13.4
|
%
|
Provision for income
taxes
|
|
|
24,644
|
|
|
|
2.6
|
%
|
|
|
23,872
|
|
|
|
2.9
|
%
|
Net income
|
|
$
|
99,129
|
|
|
|
10.2
|
%
|
|
$
|
86,373
|
|
|
|
10.5
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
|
$
|
2.49
|
|
|
|
|
|
|
$
|
2.05
|
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Income (Unaudited)
|
|
|
|
Three Fiscal
Quarters Ended
|
|
|
|
September 6,
2020
|
|
|
%
of
Total
Revenues
|
|
|
September
8,
2019
|
|
|
%
of
Total
Revenues
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Company-owned
stores
|
|
$
|
329,820
|
|
|
|
|
|
|
$
|
323,026
|
|
|
|
|
|
U.S. franchise
royalties and fees
|
|
|
335,898
|
|
|
|
|
|
|
|
289,349
|
|
|
|
|
|
Supply
chain
|
|
|
1,625,502
|
|
|
|
|
|
|
|
1,424,787
|
|
|
|
|
|
International
franchise royalties and fees
|
|
|
160,202
|
|
|
|
|
|
|
|
164,145
|
|
|
|
|
|
U.S. franchise
advertising
|
|
|
309,422
|
|
|
|
|
|
|
|
267,115
|
|
|
|
|
|
Total
revenues
|
|
|
2,760,844
|
|
|
|
100.0
|
%
|
|
|
2,468,422
|
|
|
|
100.0
|
%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Company-owned
stores
|
|
|
258,007
|
|
|
|
|
|
|
|
247,516
|
|
|
|
|
|
Supply
chain
|
|
|
1,443,608
|
|
|
|
|
|
|
|
1,265,695
|
|
|
|
|
|
Total cost of
sales
|
|
|
1,701,615
|
|
|
|
61.7
|
%
|
|
|
1,513,211
|
|
|
|
61.3
|
%
|
Operating
margin
|
|
|
1,059,229
|
|
|
|
38.3
|
%
|
|
|
955,211
|
|
|
|
38.7
|
%
|
General and
administrative
|
|
|
268,209
|
|
|
|
9.7
|
%
|
|
|
262,640
|
|
|
|
10.7
|
%
|
U.S. franchise
advertising
|
|
|
309,422
|
|
|
|
11.2
|
%
|
|
|
267,115
|
|
|
|
10.8
|
%
|
Income from
operations
|
|
|
481,598
|
|
|
|
17.4
|
%
|
|
|
425,456
|
|
|
|
17.2
|
%
|
Interest expense,
net
|
|
|
(116,033)
|
|
|
|
(4.2)
|
%
|
|
|
(100,089)
|
|
|
|
(4.0)
|
%
|
Income before
provision for income taxes
|
|
|
365,565
|
|
|
|
13.2
|
%
|
|
|
325,367
|
|
|
|
13.2
|
%
|
Provision for income
taxes
|
|
|
26,166
|
|
|
|
0.9
|
%
|
|
|
53,985
|
|
|
|
2.2
|
%
|
Net income
|
|
$
|
339,399
|
|
|
|
12.3
|
%
|
|
$
|
271,382
|
|
|
|
11.0
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Balance
Sheets (Unaudited)
|
|
|
|
September 6,
2020
|
|
|
December
29,
2019
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
330,719
|
|
|
$
|
190,615
|
|
Restricted cash and
cash equivalents
|
|
|
160,330
|
|
|
|
209,269
|
|
Accounts receivable,
net
|
|
|
229,403
|
|
|
|
210,260
|
|
Inventories
|
|
|
65,499
|
|
|
|
52,955
|
|
Prepaid expenses and
other
|
|
|
26,288
|
|
|
|
19,129
|
|
Advertising fund
assets, restricted
|
|
|
144,282
|
|
|
|
105,389
|
|
Total current
assets
|
|
|
956,521
|
|
|
|
787,617
|
|
Property, plant and
equipment, net
|
|
|
262,264
|
|
|
|
242,881
|
|
Operating lease
right-of-use assets
|
|
|
229,653
|
|
|
|
228,785
|
|
Other
assets
|
|
|
172,510
|
|
|
|
122,809
|
|
Total
assets
|
|
$
|
1,620,948
|
|
|
$
|
1,382,092
|
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
43,662
|
|
|
$
|
43,394
|
|
Accounts
payable
|
|
|
88,188
|
|
|
|
111,101
|
|
Operating lease
liabilities
|
|
|
36,508
|
|
|
|
33,318
|
|
Advertising fund
liabilities
|
|
|
138,348
|
|
|
|
101,921
|
|
Other accrued
liabilities
|
|
|
181,819
|
|
|
|
164,097
|
|
Total current
liabilities
|
|
|
488,525
|
|
|
|
453,831
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
4,062,175
|
|
|
|
4,071,055
|
|
Operating lease
liabilities
|
|
|
201,981
|
|
|
|
202,731
|
|
Other accrued
liabilities
|
|
|
79,798
|
|
|
|
70,234
|
|
Total long-term
liabilities
|
|
|
4,343,954
|
|
|
|
4,344,020
|
|
Total stockholders'
deficit
|
|
|
(3,211,531)
|
|
|
|
(3,415,759)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
1,620,948
|
|
|
$
|
1,382,092
|
|
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Cash Flows (Unaudited)
|
|
|
Three Fiscal
Quarters Ended
|
|
|
|
September 6,
2020
|
|
|
September
8, 2019
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
339,399
|
|
|
$
|
271,382
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
44,116
|
|
|
|
40,982
|
|
Loss on sale/disposal
of assets
|
|
|
1,530
|
|
|
|
3,141
|
|
Amortization of debt
issuance costs
|
|
|
3,853
|
|
|
|
3,288
|
|
Provision for deferred
income taxes
|
|
|
3,681
|
|
|
|
1,627
|
|
Non-cash equity-based
compensation expense
|
|
|
14,934
|
|
|
|
13,269
|
|
Excess tax benefits
from equity-based compensation
|
|
|
(56,862)
|
|
|
|
(19,670)
|
|
Provision for losses
and accounts and notes receivable
|
|
|
1,536
|
|
|
|
774
|
|
Changes in operating
assets and liabilities
|
|
|
(14,146)
|
|
|
|
16,214
|
|
Changes in advertising
fund assets and liabilities, restricted
|
|
|
32,358
|
|
|
|
(6,411)
|
|
Net cash provided by
operating activities
|
|
|
370,399
|
|
|
|
324,596
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(51,163)
|
|
|
|
(42,676)
|
|
Purchase of
investments
|
|
|
(40,000)
|
|
|
|
—
|
|
Proceeds from sale of
assets
|
|
|
11
|
|
|
|
9,738
|
|
Maturities of
advertising fund investments, restricted
|
|
|
—
|
|
|
|
30,152
|
|
Other
|
|
|
83
|
|
|
|
(351)
|
|
Net cash used in
investing activities
|
|
|
(91,069)
|
|
|
|
(3,137)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
|
158,000
|
|
|
|
—
|
|
Repayments of
long-term debt and finance lease obligations
|
|
|
(190,843)
|
|
|
|
(91,860)
|
|
Proceeds from exercise
of stock options
|
|
|
26,526
|
|
|
|
10,122
|
|
Purchases of common
stock
|
|
|
(79,590)
|
|
|
|
(105,149)
|
|
Tax payments for
restricted stock upon vesting
|
|
|
(6,584)
|
|
|
|
(5,820)
|
|
Payments of common
stock dividends and equivalents
|
|
|
(61,093)
|
|
|
|
(53,598)
|
|
Net cash used in
financing activities
|
|
|
(153,584)
|
|
|
|
(246,305)
|
|
Effect of exchange
rate changes on cash
|
|
|
243
|
|
|
|
139
|
|
Change in cash and
cash equivalents, restricted cash and cash equivalents
|
|
|
125,989
|
|
|
|
75,293
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
190,615
|
|
|
|
25,438
|
|
Restricted cash and
cash equivalents, beginning of period
|
|
|
209,269
|
|
|
|
166,993
|
|
Cash and cash
equivalents included in advertising fund assets,
restricted,
beginning of period
|
|
|
84,040
|
|
|
|
44,988
|
|
Cash and cash
equivalents, restricted cash and cash equivalents and
cash and
cash equivalents included in advertising fund assets,
restricted,
beginning of period
|
|
|
483,924
|
|
|
|
237,419
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
|
330,719
|
|
|
|
66,706
|
|
Restricted cash and
cash equivalents, end of period
|
|
|
160,330
|
|
|
|
177,292
|
|
Cash and cash
equivalents included in advertising fund assets,
restricted,
end of
period
|
|
|
118,864
|
|
|
|
68,714
|
|
Cash and cash
equivalents, restricted cash and cash equivalents and cash
and
cash
equivalents included in advertising fund assets,
restricted,
end of
period
|
|
$
|
609,913
|
|
|
$
|
312,712
|
|
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SOURCE Domino's Pizza, Inc.