Papa John's Announces Fourth Quarter and Full Year 2015 Results
2016 Operating Assumptions and Earnings Guidance Announced
Highlights
-
Fourth quarter earnings per diluted share of
$0.62 in 2015 compared to$0.52 in 2014, an increase of 19.2% -
Adjusted earnings per diluted share of
$2.09 for full year 2015, excluding a legal settlement, or an increase of 19.4% over 2014; reported earnings per diluted share of$1.89 for full year 2015 -
System-wide comparable sales increases of 1.9% for
North America and 5.3% for International for the fourth quarter; System-wide comparable sales increases of 4.2% forNorth America and 6.9% for International for the full year -
107 worldwide net unit openings in the fourth quarter and 230 for
the full year, of which 182 were International and 48 were in
North America
"I'd like to congratulate our entire team for making 2015 another great
year for the Papa John's brand," said Papa John's founder, chairman and
CEO
Fourth quarter 2015 revenues were
Full year 2015 revenues were
Three Months Ended | Year Ended | ||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||
Global restaurant sales growth (a) | 3.4% | 6.6% | 5.3% | 9.8% | |||||||||
Global restaurant sales growth, excluding the impact of foreign currency (a) |
5.7% | 8.2% | 7.8% | 10.6% | |||||||||
Comparable sales growth (b) | |||||||||||||
Domestic company-owned restaurants | 3.4% | 5.9% | 5.9% | 8.2% | |||||||||
|
1.3% | 3.4% | 3.6% | 6.2% | |||||||||
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1.9% | 4.1% | 4.2% | 6.7% | |||||||||
System-wide international restaurants | 5.3% | 8.9% | 6.9% | 7.4% | |||||||||
(a) |
Includes both company-owned and franchised restaurant sales. |
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(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 |
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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 decreased
-
Domestic company-owned restaurant sales increased
$8.4 million , or 4.6%, and$54.5 million , or 7.8%, for the fourth quarter and full year 2015, respectively, primarily due to increases of 3.4% and 5.9% in comparable sales and increases of 1.9% and 2.7% in equivalent units. -
North America franchise royalty revenue increased approximately$800,000 , or 3.4%, and$5.6 million , or 6.3%, for the fourth quarter and full year 2015, respectively, primarily due to increases of 1.3% and 3.6% in comparable sales, increases of 1.2% and 1.0% in equivalent units and lower royalty incentives. -
Domestic commissary sales decreased
$7.2 million , or 4.4%, and$13.9 million , or 2.2%, for the fourth quarter and full year, respectively, primarily due to lower revenues associated with lower cheese prices, somewhat offset by increases in restaurant sales volumes. Our pricing for cheese is based on a fixed dollar markup; when cheese prices decrease, revenues decrease with no overall impact on the related dollar margin. -
Other sales decreased approximately
$9.9 million , or 40.3%, and$9.5 million , or 12.8%, for the fourth quarter and full year 2015, respectively. As previously discussed, the decreases are primarily due to the lower FOCUS equipment sales, as anticipated. The higher levels of FOCUS equipment sales in the fourth quarter and full year of 2014 had no significant impact on operating results. -
International revenues decreased approximately
$900,000 , or 3.4%, for the fourth quarter and increased approximately$2.2 million , or 2.2%, for the full year 2015. The decrease for the fourth quarter was primarily due to lower sales at company-owned restaurants inChina due to the disposition of eleven restaurants in 2014 and negative comparable sales. This decrease was partially offset by higher royalties and commissary revenues due to an increase in the number of franchised restaurants and an increase in franchised comparable sales, calculated on a constant dollar basis. The increase for the full year was primarily due to higher royalties and commissary revenues from the increase in the number of franchised restaurants and an increase in franchised comparable sales. These increases were partially offset by lower sales at company-owned restaurants inChina . Foreign currency exchange rates had a negative impact on revenues of approximately$1.5 million and$7.5 million for the fourth quarter and full year, respectively.
Operating Highlights
The tables below summarize income before income taxes on a reporting segment basis for the fourth quarter and full year 2015. Full year 2015 adjusted income before income taxes excludes the previously mentioned legal settlement (as detailed in the "Item Impacting Comparability" section).
Three Months Ended | ||||||||||||||
|
|
Increase | ||||||||||||
(In thousands) | 2015 | 2014 | (Decrease) | |||||||||||
Domestic company-owned restaurants | 15,267 | $ | 8,900 | $ | 6,367 | |||||||||
Domestic commissaries | 12,027 | 13,143 | (1,116 | ) | ||||||||||
|
21,770 | 20,620 | 1,150 | |||||||||||
International | 4,084 | 3,179 | 905 | |||||||||||
All others | 1,075 | 141 | 934 | |||||||||||
Unallocated corporate expenses | (15,260 | ) | (14,035 | ) | (1,225 | ) | ||||||||
Elimination of intersegment profits | (40 | ) | 443 | (483 | ) | |||||||||
Total income before income taxes | $ | 38,923 | $ | 32,391 | $ | 6,532 | ||||||||
Year Ended | |||||||||||||||||||||
As Reported | Legal | Adjusted | Adjusted | ||||||||||||||||||
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Settlement |
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|
Increase | |||||||||||||||||
(In thousands) | 2015 | expense | 2015 | 2014 | (Decrease) | ||||||||||||||||
Domestic company-owned restaurants | $ | 56,452 | $ | - | $ | 56,452 | $ | 40,969 | $ | 15,483 | |||||||||||
Domestic commissaries | 44,721 | - | 44,721 | 39,317 | 5,404 | ||||||||||||||||
|
83,315 | - | 83,315 | 77,009 | 6,306 | ||||||||||||||||
International | 10,891 | - | 10,891 | 7,250 | 3,641 | ||||||||||||||||
All others | 845 | - | 845 | (9 | ) | 854 | |||||||||||||||
Unallocated corporate expenses | (75,896 | ) | 12,278 | (63,618 | ) | (49,440 | ) | (14,178 | ) | ||||||||||||
Elimination of intersegment profits | (1,181 | ) | - | (1,181 | ) | (841 | ) | (340 | ) | ||||||||||||
Total income before income taxes | $ | 119,147 | $ | 12,278 | $ | 131,425 | $ | 114,255 | $ | 17,170 | |||||||||||
Fourth quarter 2015 income before income taxes increased approximately
-
Domestic company-owned restaurants income increased
$6.4 million primarily due to higher profits from the 3.4% increase in comparable sales, lower commodity costs and lower insurance costs including non-owned automobile claims of approximately$3.4 million . The improvement in insurance costs is primarily attributable to 2014 including significant adverse claims experience in the fourth quarter. The market price for cheese averaged$1.60 per pound for the fourth quarter of 2015, compared to$1.99 per pound in the fourth quarter of 2014. -
North America franchising income increased$1.2 million primarily due to higher royalties attributable to the 1.3% and 1.2% increases in comparable sales and equivalent units, respectively, and lower royalty incentives. -
International income increased approximately
$900,000 primarily due to higher royalties from an increase in units and comparable sales of 5.3% and an improvement inChina results, including lower depreciation expense of$500,000 as we are no longer depreciating ourChina company-owned restaurants, which are classified as held for sale. This was somewhat offset by the negative impact of foreign currency exchange rates of approximately$600,000 . -
The results for the "All others" segment increased approximately
$900,000 primarily due to lower costs for our digital ordering business and a higher margin at our print and promotions business as the prior year included a reduced cost direct mail campaign offered to our domestic franchised restaurants.
These increases were partially offset by the following decreases:
-
Domestic commissaries income decreased approximately
$1.1 million due to a planned lower margin. We manage commissary results on a full year basis and the margins can vary somewhat by quarter. -
Unallocated corporate expenses increased approximately
$1.2 million primarily due to increases in management incentive costs from higher annual operating results, health insurance claims costs, and interest costs from higher levels of debt and a higher effective interest rate. These increases were partially offset by lower legal costs.
Income before income taxes increased
-
Domestic company-owned restaurants income increased
$15.5 million primarily due to higher profits from the 5.9% increase in comparable sales and lower commodity costs. These increases were partially offset by higher depreciation expense of$1.1 million associated with FOCUS equipment. The market price for cheese averaged$1.61 per pound for 2015, compared to$2.12 per pound for the prior year. -
Domestic commissaries income increased approximately
$5.4 million primarily due to incremental profits from higher restaurant volumes and a higher margin, partially offset by incremental insurance expense from higher automobile claims costs of approximately$1.5 million . -
North America franchising income increased$6.3 million primarily due to higher royalties attributable to the 3.6% and 1.0% increases in comparable sales and equivalent units, respectively, and lower royalty incentives. -
International income increased approximately
$3.6 million primarily due to an increase in units and comparable sales of 6.9%, which resulted in both higher royalties and an increase inUnited Kingdom commissary results. Additionally, our Company-ownedChina results improved primarily due to lower non-operating costs of$1.5 million for impairment, disposition and depreciation. These increases were partially offset by the negative impact of foreign currency exchange rates of approximately$2.8 million . -
The results for the "All others" segment increased approximately
$900,000 primarily due to lower infrastructure costs to support our digital ordering business.
These increases were partially offset by higher unallocated corporate
expenses of approximately
The effective income tax rates were 32.5% and 31.2% for the fourth quarter and full year 2015, respectively, representing an increase of 1.5% for the fourth quarter and a decrease of 0.8% for the full year period. Our effective income tax rate may fluctuate from quarter to quarter for various reasons. The 2015 full year rate includes higher benefits from various tax deductions and credits.
The company's free cash flow, a non-GAAP financial measure, was as follows (in thousands):
Year Ended | |||||||||
|
|
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2015 | 2014 | ||||||||
Net cash provided by operating activities (a) | $ | 160,312 | $ | 122,632 | |||||
Purchases of property and equipment (b) | (38,972 | ) | (48,655 | ) | |||||
Free cash flow | $ | 121,340 | $ | 73,977 | |||||
(a) |
The increase of approximately |
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(b) |
The decrease of approximately |
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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 dividends, share repurchases and 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 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 |
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Beginning - |
697 | 2,664 | 3,361 | 1,425 | 4,786 | ||||||||||
Opened | 8 | 38 | 46 | 93 | 139 | ||||||||||
Closed | (2 | ) | (17 | ) | (19 | ) | (13 | ) | (32 | ) | |||||
Acquired (divested) | 4 | (4 | ) | - | - | - | |||||||||
Ending - |
707 | 2,681 | 3,388 | 1,505 | 4,893 | ||||||||||
Year-to-date |
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Beginning - |
686 | 2,654 | 3,340 | 1,323 | 4,663 | ||||||||||
Opened | 16 | 106 | 122 | 235 | 357 | ||||||||||
Closed | (2 | ) | (72 | ) | (74 | ) | (53 | ) | (127 | ) | |||||
Acquired (divested) | 7 | (7 | ) | - | - | - | |||||||||
Ending - |
707 | 2,681 | 3,388 | 1,505 | 4,893 | ||||||||||
Unit growth | 21 | 27 | 48 | 182 | 230 | ||||||||||
% increase | 3.1 | % | 1.0 | % | 1.4 | % | 13.8 | % | 4.9 | % | |||||
Our development pipeline as of
Item Impacting Comparability
The following table reconciles our GAAP financial results to our
adjusted financial results, which are non-GAAP measures, for the fourth
quarter and year ended
Three Months Ended | Year Ended | |||||||||||||
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(In thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Income before income taxes, as reported | $ | 38,923 | $ | 32,391 | $ | 119,147 | $ | 114,255 | ||||||
Legal Settlement expense | - | - | 12,278 | - | ||||||||||
Income before income taxes, as adjusted | $ | 38,923 | $ | 32,391 | $ | 131,425 | $ | 114,255 | ||||||
Net income, as reported | $ | 24,695 | $ | 21,181 | $ | 75,682 | $ | 73,315 | ||||||
Legal Settlement expense | - | - | 7,986 | - | ||||||||||
Net income, as adjusted | $ | 24,695 | $ | 21,181 | $ | 83,668 | $ | 73,315 | ||||||
Diluted earnings per share, as reported | $ | 0.62 | $ | 0.52 | $ | 1.89 | $ | 1.75 | ||||||
Legal Settlement expense | - | - | 0.20 | - | ||||||||||
Diluted earnings per share, as adjusted | $ | 0.62 | $ | 0.52 | $ | 2.09 | $ | 1.75 | ||||||
The legal settlement expense represents a pre-tax expense of
The non-GAAP results shown above, which exclude the legal settlement, 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 the legal settlement is important for purposes of comparison to prior year results. In addition, management uses this metric to evaluate the company's underlying operating performance and to analyze trends.
Share Repurchase Activity
In
The following table reflects our repurchases for the fourth quarter and
full year 2015 and subsequent repurchases through
Period |
Number of Shares |
Cost | |||||||
Fourth Quarter 2015 | 637 | $ | 39,627 | ||||||
Full Year 2015 | 1,845 | $ | 119,793 | ||||||
|
860 | $ | 42,589 | ||||||
There were 39.4 million and 40.0 million diluted weighted average shares
outstanding for the fourth quarter and full year 2015, respectively,
representing decreases of 3.5% and 4.1%, respectively, over the prior
year comparable periods. Diluted earnings per share increased
2016 Key Operating Assumptions and Earnings Guidance
Earnings per Share (EPS) - The company projects 2016 EPS to
increase to a range of
Comparable Restaurant Sales -
Worldwide Net Unit Growth - Worldwide net unit growth in 2016 is expected to range between 180 and 210 units, with approximately 75% of the net unit growth in International markets.
Revenues - Total consolidated revenues are expected to increase 4% to 6% in 2016.
Income Before Income Taxes Margin - Consolidated income before
income taxes margin in 2016 is expected to increase up to 25 basis
points over 2015 levels. We are assuming full-year block cheese prices
in the low
Income Tax Rate - The income tax rate in 2016 is expected to range from 31.0% to 32.5%.
Share Repurchases and Debt - The company expects to repurchase
shares of its outstanding stock in a range of
Capital Expenditures - Capital expenditures for 2016 are expected
to approximate
Conference Call
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,
Annual Meeting Date Scheduled
The 2016 Annual Meeting of Stockholders will be held on
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, geopolitical or other disruptions beyond our control;
- increased risks associated with our international operations, including economic and political conditions, instability in our international markets, especially emerging markets, fluctuations in currency exchange rates, and difficulty in meeting planned sales targets and new store growth;
- the impact of current or future claims and litigation, including labor and employment-related claims;
- current or proposed legislation impacting 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; and
- 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.
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: | ||||||||||||||||||
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Domestic company-owned restaurant sales | $ | 192,999 | $ | 184,585 | $ | 756,307 | $ | 701,854 | ||||||||||
Franchise royalties | 24,527 | 23,715 | 95,046 | 89,443 | ||||||||||||||
Franchise and development fees | 344 | 233 | 1,010 | 726 | ||||||||||||||
Domestic commissary sales | 158,407 | 165,640 | 615,610 | 629,492 | ||||||||||||||
Other sales | 14,601 | 24,475 | 64,711 | 74,179 | ||||||||||||||
International: | ||||||||||||||||||
Royalties and franchise and development fees | 7,395 | 6,961 | 27,289 | 25,730 | ||||||||||||||
Restaurant and commissary sales | 18,543 | 19,900 | 77,402 | 76,725 | ||||||||||||||
Total revenues | 416,816 | 425,509 | 1,637,375 | 1,598,149 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||
Domestic company-owned restaurant expenses: | ||||||||||||||||||
Cost of sales | 46,009 | 46,087 | 178,952 | 175,733 | ||||||||||||||
Salaries and benefits | 52,609 | 49,011 | 207,998 | 188,234 | ||||||||||||||
Advertising and related costs | 17,609 | 16,484 | 67,164 | 63,463 | ||||||||||||||
Occupancy costs and other restaurant operating expenses | 37,055 | 39,677 | 150,092 | 144,628 | ||||||||||||||
Total domestic company-owned restaurant expenses | 153,282 | 151,259 | 604,206 | 572,058 | ||||||||||||||
Domestic commissary expenses: | ||||||||||||||||||
Cost of sales | 121,704 | 128,638 | 471,812 | 492,940 | ||||||||||||||
Salaries and benefits and other commissary operating expenses | 24,295 | 23,819 | 96,715 | 91,981 | ||||||||||||||
Total domestic commissary expenses | 145,999 | 152,457 | 568,527 | 584,921 | ||||||||||||||
Other operating expenses | 13,170 | 23,622 | 60,896 | 71,068 | ||||||||||||||
International restaurant and commissary expenses | 15,297 | 16,352 | 63,506 | 63,718 | ||||||||||||||
General and administrative expenses | 37,392 | 36,367 | 157,421 | 140,566 | ||||||||||||||
Other general expenses | 1,778 | 1,583 | 6,205 | 8,223 | ||||||||||||||
Depreciation and amortization | 9,669 | 10,426 | 40,307 | 39,965 | ||||||||||||||
Total costs and expenses | 376,587 | 392,066 | 1,501,068 | 1,480,519 | ||||||||||||||
Operating income | 40,229 | 33,443 | 136,307 | 117,630 | ||||||||||||||
Legal settlement expense | - | - | (12,278 | ) | - | |||||||||||||
Net interest expense | (1,306 | ) | (1,052 | ) | (4,882 | ) | (3,375 | ) | ||||||||||
Income before income taxes | 38,923 | 32,391 | 119,147 | 114,255 | ||||||||||||||
Income tax expense | 12,642 | 10,036 | 37,183 | 36,558 | ||||||||||||||
Net income before attribution to noncontrolling interests | 26,281 | 22,355 | 81,964 | 77,697 | ||||||||||||||
Income attributable to noncontrolling interests | (1,586 | ) | (1,174 | ) | (6,282 | ) | (4,382 | ) | ||||||||||
Net income attributable to the company | $ | 24,695 | $ | 21,181 | $ | 75,682 | $ | 73,315 | ||||||||||
Calculation of income for earnings per share: | ||||||||||||||||||
Net income attributable to the company | $ | 24,695 | $ | 21,181 | $ | 75,682 | $ | 73,315 | ||||||||||
Decrease (increase) in noncontrolling interest redemption value | (127 | ) | 37 | 65 | (44 | ) | ||||||||||||
Net income attributable to participating securities | (102 | ) | (107 | ) | (325 | ) | (402 | ) | ||||||||||
Net income attributable to common shareholders | $ | 24,466 | $ | 21,111 | $ | 75,422 | $ | 72,869 | ||||||||||
Basic earnings per common share | $ | 0.63 | $ | 0.53 | $ | 1.91 | $ | 1.78 | ||||||||||
Diluted earnings per common share | $ | 0.62 | $ | 0.52 | $ | 1.89 | $ | 1.75 | ||||||||||
Basic weighted average common shares outstanding | 38,909 | 40,097 | 39,458 | 40,960 | ||||||||||||||
Diluted weighted average common shares outstanding | 39,367 | 40,789 | 40,000 | 41,718 | ||||||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.14 | $ | 0.63 | $ | 0.53 | ||||||||||
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Condensed Consolidated Balance Sheets | ||||||
Year Ended | ||||||
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(In thousands) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 21,006 | $ | 20,122 | ||
Accounts receivable, net | 63,320 | 56,047 | ||||
Notes receivable, net | 7,816 | 6,106 | ||||
Income tax receivable | 272 | 9,527 | ||||
Inventories | 21,564 | 27,394 | ||||
Prepaid expenses and other current assets | 29,313 | 28,564 | ||||
Assets held for sale | 9,299 | - | ||||
Total current assets | 152,590 | 147,760 | ||||
Property and equipment, net | 214,044 | 219,457 | ||||
Notes receivable, less current portion, net | 11,105 | 12,801 | ||||
|
79,657 | 82,007 | ||||
Deferred income taxes | 2,415 | 3,914 | ||||
Other assets | 35,101 | 38,616 | ||||
Total assets | $ | 494,912 | $ | 504,555 | ||
Liabilities and stockholders' equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 43,492 | $ | 38,832 | ||
Income and other taxes payable | 8,527 | 9,637 | ||||
Accrued expenses and other current liabilities | 80,918 | 58,293 | ||||
Total current liabilities | 132,937 | 106,762 | ||||
Deferred revenue | 3,190 | 4,257 | ||||
Long-term debt | 256,000 | 230,451 | ||||
Deferred income taxes | 4,610 | 13,940 | ||||
Other long-term liabilities | 47,606 | 41,875 | ||||
Total liabilities | 444,343 | 397,285 | ||||
Redeemable noncontrolling interests | 8,363 | 8,555 | ||||
Total stockholders' equity | 42,206 | 98,715 | ||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ | 494,912 | $ | 504,555 | ||
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 | $ | 81,964 | $ | 77,697 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Provision for uncollectible accounts and notes receivable | 1,232 | 1,795 | ||||||
Depreciation and amortization | 40,307 | 39,965 | ||||||
Deferred income taxes | (6,246 | ) | 4,422 | |||||
Stock-based compensation expense | 9,423 | 8,712 | ||||||
Other | 4,633 | 4,738 | ||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||
Accounts receivable | (9,179 | ) | (5,741 | ) | ||||
Income taxes receivable | 9,255 | (9,527 | ) | |||||
Inventories | 4,967 | (2,838 | ) | |||||
Prepaid expenses and other current assets | (1,596 | ) | (4,781 | ) | ||||
Other assets and liabilities | 620 | 915 | ||||||
Accounts payable | 4,804 | 3,171 | ||||||
Income taxes and other taxes payable | (1,113 | ) | 5,233 | |||||
Accrued expenses and other current liabilities | 21,201 | (665 | ) | |||||
Deferred revenue | 40 | (464 | ) | |||||
Net cash provided by operating activities | 160,312 | 122,632 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (38,972 | ) | (48,655 | ) | ||||
Loans issued | (4,741 | ) | (6,816 | ) | ||||
Repayments of loans issued | 5,183 | 4,254 | ||||||
Acquisitions, net of cash acquired | (922 | ) | (4,773 | ) | ||||
Proceeds from divestitures of restaurants | - | 400 | ||||||
Other | 500 | 556 | ||||||
Net cash used in investing activities | (38,952 | ) | (55,034 | ) | ||||
Financing activities | ||||||||
Net proceeds on line of credit facility | 25,549 | 72,551 | ||||||
Cash dividends paid | (24,844 | ) | (21,735 | ) | ||||
Excess tax benefit on equity awards | 10,151 | 10,282 | ||||||
Tax payments for equity award issuances | (10,965 | ) | (9,235 | ) | ||||
Proceeds from exercise of stock options | 5,197 | 5,837 | ||||||
Acquisition of Company common stock | (119,793 | ) | (117,400 | ) | ||||
Contributions from noncontrolling interest holders | 684 | 1,086 | ||||||
Distributions to noncontrolling interest holders | (6,550 | ) | (2,800 | ) | ||||
Other | 444 | 491 | ||||||
Net cash used in financing activities | (120,127 | ) | (60,923 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (349 | ) | (223 | ) | ||||
Change in cash and cash equivalents | 884 | 6,452 | ||||||
Cash and cash equivalents at beginning of period | 20,122 | 13,670 | ||||||
Cash and cash equivalents at end of period | $ | 21,006 | $ | 20,122 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160223006942/en/
Papa John's
Chief
Financial Officer
Source: Papa John's
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