Papa John's Announces Fourth Quarter 2016 Results
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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,
Fourth quarter 2016 revenues were
GAAP and adjusted net income and diluted earnings per share ("EPS") excluding Special Items results are summarized below:
Three Months Ended | Year Ended | ||||||||||||||||||||||||||
2016 |
2015 |
Increase % |
2016 |
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
Three Months Ended | Year Ended | ||||||||||||||||
2016 |
2015 |
2016 |
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 | % | |||||||||
|
3.4 | % | 1.3 | % | 3.1 | % | 3.6 | % | |||||||||
|
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
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
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
-
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.
-
International revenues for 2016 include sublease rental revenue in
the
Operating Highlights
The tables below summarize income before income taxes on a
reporting segment basis for the fourth quarter and full year ended
Three Months Ended | |||||||||||||||||||||||||||
Adjusted | Adjusted | ||||||||||||||||||||||||||
|
Special |
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|
Increase | |||||||||||||||||||||||
(In thousands) | 2016 | Items | 2016 | 2015 | (Decrease) | ||||||||||||||||||||||
Domestic company-owned restaurants | $ | 28,048 | $ | (11,572 | ) | $ | 16,476 | $ | 15,267 | $ | 1,209 | ||||||||||||||||
|
11,786 | - | 11,786 | 12,027 | (241 | ) | |||||||||||||||||||||
|
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 | |||||||||||||||||||||||||||||||||
|
Special |
|
|
Special |
|
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 | ||||||||||||||||||||
|
46,325 | - | 46,325 | 44,721 | - | 44,721 | 1,604 | ||||||||||||||||||||||||||||
|
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
-
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 theUnited Kingdom . Foreign currency exchange rates had a negative impact of approximately$800,000 , which was primarily attributable to theUnited 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
-
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 ourUnited 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
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 | |||||||||||
|
|
||||||||||
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
(b) The increase of
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
Global Restaurant Unit Data
At
Domestic Company- owned |
Franchised North America |
Total North America |
International |
System-wide | |||||||||||||||||
Fourth Quarter |
|||||||||||||||||||||
Beginning - |
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 - |
702 | 2,739 | 3,441 | 1,656 | 5,097 | ||||||||||||||||
Year-to-date |
|||||||||||||||||||||
Beginning - |
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 - |
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
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
Three Months Ended | Full Year Ended | ||||||||||||||||||
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|
|
|
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(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
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
Period |
Number of Shares |
Cost | |||||||
Fourth Quarter 2016 | 158 | $ | 12,974 | ||||||
Full Year 2016 | 2,145 | $ | 122,381 | ||||||
|
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
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
Investors and others should note that we announce material financial
information to our investors using our investor relations website, press
releases,
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
For more information about the company, please visit www.papajohns.com.
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Condensed Consolidated Statements of Income | |||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
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(In thousands, except per share amounts) | (Unaudited) | (Unaudited) | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Domestic company-owned restaurant sales | $ | 206,963 | $ | 192,999 | $ | 815,931 | $ | 756,307 | |||||||||||||||
|
26,426 | 24,871 | 102,980 | 96,056 | |||||||||||||||||||
|
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 | |||||||||||||||||||
|
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 |
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Condensed Consolidated Balance Sheets | ||||||||
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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 | ||||||
|
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 |
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Consolidated Statements of Cash Flows | |||||||||||
Year Ended | |||||||||||
(In thousands) |
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|||||||||
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 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170221006371/en/
Papa John's
Chief
Financial Officer
Source: Papa John's
News Provided by Acquire Media