Published on February 24, 2009
Exhibit
99.1
For
more information, contact:
David
Flanery
Chief
Financial Officer
502-261-4753
PAPA
JOHN’S REPORTS
FOURTH
QUARTER AND FULL-YEAR 2008 EARNINGS
2009
Earnings Guidance Increased
Highlights
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|
·
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Fourth quarter earnings per
diluted share of $0.46 in 2008 vs. $0.27 in 2007 and full year earnings
per diluted share of $1.30 in 2008 vs. $1.09 in
2007
|
|
|
·
|
Comparable fourth quarter
earnings per diluted share, excluding the consolidation of BIBP, the
finalization of certain income tax issues and restaurant closure,
impairment and disposition losses, were $0.48 in 2008 vs. $0.54 in 2007, a
decrease of 11.1%
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|
|
·
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Comparable full-year earnings
per diluted share, excluding the items indicated above, were $1.68 in 2008
vs. $1.70 in 2007, a decrease of
1.2%
|
|
|
·
|
Domestic system-wide comparable
sales decrease of 2.0% for the quarter and an increase of 0.9% for the
year
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|
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·
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63 net Papa John’s worldwide
unit openings during the quarter and 172 during the
year
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·
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Earnings guidance for 2009
increased to a range of $1.36 to $1.44 per diluted share, excluding the
impact of consolidating BIBP
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Louisville, Kentucky (February 24,
2009) – Papa John’s International, Inc. (NASDAQ: PZZA) today announced revenues
of $279.6 million for the fourth quarter of 2008, representing a decrease of
1.5% from revenues of $283.9 million for the same period in 2007. Net income for
the fourth quarter of 2008 was $12.8 million, or $0.46 per diluted share
(including after-tax income of $600,000, or $0.02 per diluted share, from the
consolidation of the results of the franchisee-owned cheese purchasing company,
BIBP Commodities, Inc. (“BIBP”), a variable interest entity, and a gain of $1.2
million, or $0.04 per diluted share, from the finalization of certain income tax
issues), compared to 2007 fourth quarter net income of $7.7 million, or $0.27
per diluted share (including a net loss of approximately $8.0 million, or $0.28
per diluted share, from the consolidation of BIBP and a gain of $1.0 million, or
$0.03 per diluted share, from the finalization of certain income tax issues).
The fourth-quarter results include pre-tax restaurant closure, impairment and
disposition losses of $3.7 million in 2008 and $1.3 million in 2007 ($2.2
million on an after-tax basis, or $0.08 per diluted share in 2008 and $850,000
on an after-tax basis, or $0.02 per diluted share in 2007).
Consolidated revenues for 2008 were
$1.13 billion, representing an increase of 6.4% from revenues of $1.06 billion
for the same period in 2007. Net income for 2008 was $36.8 million, or $1.30 per
diluted share (including a net loss of $6.9 million, or $0.24 per diluted share,
from the consolidation of BIBP and a gain of $1.7 million or $0.06 per diluted
share, from the previously mentioned finalization of certain income tax issues),
compared to 2007 net income of $32.7 million, or $1.09 per diluted share
(including a net loss of $20.5 million, or $0.68 per diluted share, from the
consolidation of BIBP and a gain of $3.4 million, or $0.11 per diluted share,
from the finalization of certain income tax issues). The full-year results for
2008 and 2007 include losses of $8.8 million and $1.8 million, respectively,
associated with restaurant closure, impairment and disposition losses ($5.5
million on an after-tax basis, or $0.20 per diluted share in 2008 and $1.2
million on an after-tax basis, or $0.04 per diluted share in 2007).
Non-GAAP
Measures
The financial information we present in
this press release excluding the impact of the consolidation of BIBP, the
finalization of certain income tax issues and restaurant closure, impairment and
disposition losses, are not measures that are defined in accordance with
accounting principles generally accepted in the United States (“GAAP”). These
non-GAAP measures should not be construed as a substitute for or a better
indicator of the company’s performance than the company’s GAAP measures.
Management believes the financial information excluding the impact of the
above-mentioned items is important for purposes of comparison to prior periods
and development of future projections and earnings growth
prospects. Management analyzes the company’s business performance and
trends excluding the impact of these items because they are not indicative of
the principal operating activities of the company. In addition, annual cash
bonuses, and certain long-term incentive programs for various levels of
management, are based on financial measures that exclude the impact of the
consolidation of BIBP and the finalization of income tax issues. The
presentation of the non-GAAP measures in this press release is made alongside
the most directly comparable GAAP measures.
2
The
company has provided the following table to reconcile the financial results we
present in this press release excluding the impact of the above-mentioned items
to our GAAP financial measures for the fourth quarter and fiscal years ended
December 28, 2008 and December 30, 2007.
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Fourth Quarter
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Full Year
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|||||||||||||||
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(In thousands, except per share amounts)
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2008
|
2007
|
2008
|
2007
|
||||||||||||
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Pre-tax
income, as reported
|
$ | 19,435 | $ | 10,366 | $ | 56,776 | $ | 46,028 | ||||||||
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(Gain)
loss from BIBP cheese purchasing entity
|
(887 | ) | 12,339 | 10,540 | 31,709 | |||||||||||
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Restaurant
closure, impairment and disposition losses *
|
3,747 | 1,307 | 8,818 | 1,807 | ||||||||||||
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Pre-tax
income, excluding noted items
|
$ | 22,295 | $ | 24,012 | $ | 76,134 | $ | 79,544 | ||||||||
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Net
income, as reported
|
$ | 12,776 | $ | 7,744 | $ | 36,796 | $ | 32,735 | ||||||||
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(Gain)
loss from BIBP cheese purchasing entity
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(576 | ) | 8,021 | 6,851 | 20,525 | |||||||||||
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Restaurant
closure, impairment and disposition losses *
|
2,222 | 850 | 5,496 | 1,159 | ||||||||||||
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Gain
from finalization of certain income tax issues
|
(1,203 | ) | (993 | ) | (1,684 | ) | (3,408 | ) | ||||||||
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Net
income, excluding noted items
|
$ | 13,219 | $ | 15,622 | $ | 47,459 | $ | 51,011 | ||||||||
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Earnings
per diluted share, as reported
|
$ | 0.46 | $ | 0.27 | $ | 1.30 | $ | 1.09 | ||||||||
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(Gain)
loss from BIBP cheese purchasing entity
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(0.02 | ) | 0.28 | 0.24 | 0.68 | |||||||||||
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Restaurant
closure, impairment and disposition losses *
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0.08 | 0.02 | 0.20 | 0.04 | ||||||||||||
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Gain
from finalization of certain income tax issues
|
(0.04 | ) | (0.03 | ) | (0.06 | ) | (0.11 | ) | ||||||||
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Earnings
per diluted share, excluding noted items
|
$ | 0.48 | $ | 0.54 | $ | 1.68 | $ | 1.70 | ||||||||
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Cash
flow from operations, as reported
|
$ | 73,063 | $ | 61,591 | ||||||||||||
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BIBP
cheese purchasing entity
|
10,540 | 31,709 | ||||||||||||||
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Cash
flow from operations, excluding BIBP
|
$ | 83,603 | $ | 93,300 | ||||||||||||
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*
|
The
prior year restaurant closure, impairment and disposition losses were not
initially added back to the non-GAAP results in 2007 due to their relative
insignificance; however, they are included here for comparability
purposes.
|
"Our
system performed solidly in 2008, and 2009 is off to a good start," commented
Papa John's Founder Chairman and Interim CEO, John Schnatter. "With
improvement in the commodities markets, and good momentum in our system during
the first two months of the year, we are pleased to be able to
increase our earnings guidance range for 2009. During these uncertain
economic times, we will continue to run our business in a disciplined manner
with a continued focus on product quality and healthy unit
economics."
3
Revenues
Comparison
Consolidated revenues were $279.6
million for the fourth quarter of 2008, a decrease of $4.3 million, or 1.5%,
over the corresponding 2007 period. The decrease in revenues for the fourth
quarter of 2008 was principally due to the following:
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·
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Domestic
company-owned restaurant revenues decreased $6.1 million or 4.5%,
reflecting the divestiture of 62 restaurants to franchisees during the
fourth quarter of 2008 and a decrease in comparable sales results of
1.3%.
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·
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Franchise
royalties increased $1.2 million or 8.6% for the quarter, primarily due to
the increase in royalty rate from 4.0% to 4.25% for the majority of
domestic franchise restaurants effective at the beginning of 2008,
partially offset by a 2.2% decrease in comparable
sales.
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·
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Franchise
and development fees decreased $2.6 million in the fourth quarter,
compared to the prior comparable period. The fourth quarter of 2007
included approximately $2.0 million of fees associated with the franchise
renewal program that was substantially completed during the
quarter. Additionally, there were fewer franchised openings in
the fourth quarter of 2008 than the 2007 period and a lower average fee
per opening due to the existence of certain development incentive
programs.
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·
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Domestic
commissaries revenues increased $3.0 million or 2.8%, due to increases in
the prices of certain commodities, including cheese. The commissary
charges a fixed dollar mark-up on its cost of cheese, and cheese cost is
based upon the BIBP block price, which increased from $1.56 per pound in
the fourth quarter of 2007 to $1.83 per pound in the fourth quarter of
2008, a 17.3% increase.
|
Revenues
were $1.13 billion for the full year of 2008, an increase of $68.5 million, or
6.4%, over the corresponding 2007 period. The increase in revenues for the full
year of 2008 was principally due to the following:
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·
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Domestic
company-owned restaurant revenues increased $28.9 million or 5.7% for the
year due primarily to increases of 1.7% and 3.4% in comparable sales and
equivalent units, respectively. The increase in equivalent
units for the year is due to the acquisition of restaurants from
franchisees during the third quarter of 2007, partially offset by the
divestiture in the fourth quarter of 2008 noted
above.
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·
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Franchise
royalties increased $4.4 million or 8.0% for the year, primarily due to
the increase in the royalty rate noted
above.
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·
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Franchise
and development fees decreased $3.2 million resulting from fees collected
from the franchise renewal program in the fourth quarter of 2007 noted
above. Additionally, there were fewer franchise openings during 2008 and a
lower average fee per opening due to the existence of certain development
incentive programs.
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·
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Domestic
commissaries revenues increased $30.0 million, or 7.5% principally due to
the same reasons mentioned above. The BIBP cost of cheese averaged $1.45
per pound in 2007 as compared to $1.81 per pound in 2008, a 24.8%
increase. Additionally, the cost of wheat, as measured on domestic
commodity markets, increased approximately 43% in 2008, as compared to
2007.
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4
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·
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International
revenues increased $7.5 million or 24.2%, reflecting the increase in both
the number and average unit volumes of our company-owned and franchised
restaurants over the past year.
|
Operating Results and Cash
Flow
Operating
Results
Our
pre-tax income for the fourth quarter of 2008 was $19.4 million, compared to
$10.4 million for the corresponding period in 2007. For the year ended December
28, 2008, pre-tax income was $56.8 million compared to $46.0 million for the
corresponding period of 2007. Excluding the impact of the consolidation of BIBP
and the impact of restaurant closure, impairment and disposition losses, fourth
quarter 2008 pre-tax income was $22.3 million, a decrease of $1.7 million or
7.2%, from the 2007 comparable results of $24.0 million, and pre-tax income for
the year ended December 28, 2008 was $76.1 million, a decrease of $3.4 million,
or 4.3%, from the 2007 comparable results of $79.5 million. An analysis of the
changes in pre-tax income for the fourth quarter and full year 2008,
respectively (excluding the consolidation of BIBP), are summarized as follows
(analyzed on a segment basis — see the Summary Financial Data table that follows
for the reconciliation of segment income to consolidated income
below):
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·
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Domestic Company-owned
Restaurant Segment. Domestic company-owned restaurants’ operating
income was relatively flat for the fourth quarter and decreased $5.4
million for the full year ended December 28, 2008, comprised of the
following:
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Quarter
|
Full Year
|
|||||||||||||||||||||||
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Dec. 28,
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Dec. 30,
|
Increase
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Dec. 28,
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Dec. 30,
|
Increase
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|||||||||||||||||||
|
2008
|
2007
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(Decrease)
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2008
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2007
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(Decrease)
|
|||||||||||||||||||
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Recurring
operations
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$ | 7,556 | $ | 7,471 | $ | 85 | $ | 26,515 | $ | 26,620 | $ | (105 | ) | |||||||||||
|
Closure,
impairment and disposition charges (1)
|
(1,447 | ) | (1,307 | ) | (140 | ) | (6,518 | ) | (1,807 | ) | (4,711 | ) | ||||||||||||
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Gain
on lease termination
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- | - | - | - | 594 | (594 | ) | |||||||||||||||||
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Total
segment operating income
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$ | 6,109 | $ | 6,164 | $ | (55 | ) | $ | 19,997 | $ | 25,407 | $ | (5,410 | ) | ||||||||||
|
(1)
|
Total
2008 closure, impairment and disposition charges of $3.7 million for the
quarter and $8.8 million for the year included $2.3 million of impairment
charges reported in the International
segment.
|
Domestic
company-owned restaurants’ income from recurring operations was relatively flat
for the three months ended December 28, 2008, as compared to the same period in
2007, as the impact of the negative 1.3% comparable sales in 2008, was offset by
certain labor productivity efficiencies. For the full-year 2008,
recurring income was comparable to the 2007 results as the significant increase
in commodities costs during 2008 was offset by the fixed cost leverage
associated with the 1.7% increase in comparable sales for the year and the
benefit from units acquired in the third quarter of 2007.
5
Restaurant
operating margin on an external basis, excluding the impact of the consolidation
of BIBP, was 19.7% for the fourth quarter of 2008, which is consistent with the
comparable period. For the full year 2008, excluding the impact of
BIBP, the restaurant operating margin was 18.9%, which was approximately 1.0%
below the 2007 margin primarily due to increased commodities costs.
We
recorded restaurant closure, impairment and disposition charges of $1.4 million
and $6.5 million in the fourth quarter and full year ended December 28, 2008,
respectively, compared to $1.3 million and $1.8 million in the comparable prior
periods. The charges were primarily associated with the previously mentioned
divestiture of 62 company-owned domestic units during 2008 and our plans to
divest 17 restaurants in two markets in 2009.
|
|
·
|
Domestic Commissary Segment.
Domestic commissaries’ operating income decreased approximately
$200,000 and $5.6 million for the three months and full year ended
December 28, 2008, respectively, reflecting a decline in sales volumes and
a reduction in gross margin resulting from increases in the cost of
certain commodities that were not passed along via price increases to
domestic restaurants. Additionally, the full-year 2008 results were
negatively impacted by an increase in distribution costs due to higher
fuel prices.
|
|
|
·
|
Domestic Franchising Segment.
Domestic franchise sales for the fourth quarter of 2008 increased
1.9% to $378.7 million from $371.8 million for the same period in 2007 and
increased 2.7% to $1.50 billion for the full year ended December 28, 2008,
from $1.46 billion for the same period in 2007. The increase for the
fourth quarter was due to an increase in equivalent units of 4.0%,
partially offset by a 2.2% decrease in comparable sales. On a full year
basis, equivalent units increased 1.8% and comparable sales increased
0.6%. Domestic franchising operating income decreased approximately $1.3
million to $13.4 million for the three months ended December 28, 2008,
from $14.7 million in the prior comparable period and increased $2.1
million to $53.6 million for the full year ended December 28, 2008, from
$51.5 million in the prior comparable period. Fourth quarter and full year
2008 benefited from the 0.25% increase in our royalty rate implemented at
the beginning of 2008 (the royalty rate for the majority of domestic
franchisees was 4.25% in 2008 as compared to 4.0% in 2007). The fourth
quarter 2007 results included the collection of $2.0 million in fees
associated with the franchise renewal program, which more than offset the
impact of the 0.25% increase in our royalty
rate.
|
6
|
|
·
|
International Segment.
The international segment reported operating losses of $2.7 million
and $7.2 million for the three months and full year ended December 28,
2008, respectively, compared to losses of $2.4 million and $8.7 million,
respectively, in the same periods of the prior year. The 2008 periods
include a goodwill impairment charge of $2.3 million associated with our
United Kingdom operations. Excluding the PJUK impairment charge, the
operating loss for the fourth quarter and full-year 2008 was approximately
$400,000 and $4.9 million, respectively, or an improvement of $2.0 million
for the fourth quarter and $3.8 million for the full year. The
improvement in the operating results reflects leverage on the
international organizational structure from increased revenues due to
growth in the number of units and unit
volumes.
|
|
|
·
|
All Others
Segment. The
operating income for the “All others” reporting segment increased $1.3
million for the three months ended December 28, 2008 and increased $2.8
million for the year ended December 28, 2008, as compared to the
corresponding 2007 periods. The increases were primarily due to favorable
adjustments in remaining claims loss reserves associated with our inactive
captive insurance program and an increase in sales from our online
operations.
|
|
|
·
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Unallocated
Corporate Segment. Unallocated corporate expenses
increased approximately $3.0 million for the three months ended December
28, 2008 and increased $4.7 million for the full year ended December 28,
2008, as compared to the corresponding periods of the prior year. The
components of the unallocated corporate expenses were as follows (in
thousands):
|
|
Quarter
|
Full Year
|
|||||||||||||||||||||||
|
Dec. 28,
|
Dec. 30,
|
Increase
|
Dec. 28,
|
Dec. 30,
|
Increase
|
|||||||||||||||||||
|
2008
|
2007
|
(decrease)
|
2008
|
2007
|
(decrease)
|
|||||||||||||||||||
|
General
and administrative (a)
|
$ | (974 | ) | $ | 1,929 | $ | (2,903 | ) | $ | 16,372 | $ | 17,515 | $ | (1,143 | ) | |||||||||
|
Net
interest
|
1,317 | 1,609 | (292 | ) | 4,961 | 5,891 | (930 | ) | ||||||||||||||||
|
Depreciation
|
2,017 | 1,711 | 306 | 7,770 | 6,702 | 1,068 | ||||||||||||||||||
|
Marketing
contributions (b)
|
3,675 | - | 3,675 | 3,900 | 400 | 3,500 | ||||||||||||||||||
|
Provisions
for uncollectible accounts and notes receivable (c)
|
3,491 | (34 | ) | 3,525 | 4,082 | 203 | 3,879 | |||||||||||||||||
|
Other
expense (income) (d)
|
(258 | ) | 1,089 | (1,347 | ) | (931 | ) | 743 | (1,674 | ) | ||||||||||||||
|
Total
unallocated corporate expenses
|
$ | 9,268 | $ | 6,304 | $ | 2,964 | $ | 36,154 | $ | 31,454 | $ | 4,700 | ||||||||||||
|
(a)
|
The
decreases of $2.9 million and $1.1 million in general and administrative
costs for the fourth quarter and full year ended December 28, 2008 were
primarily due to reductions in equity-based compensation expense due to
awards forfeited by our former CEO and other former members of management
upon resignation and a reduction in the expected payments under certain
cash and equity-based compensation programs. In addition, the 2008 results
benefited from reductions in certain overhead costs such as travel and
employee benefits.
|
|
(b)
|
The
company contributed discretionary contributions to the national marketing
fund and other local advertising cooperatives in both 2007 and 2008. The
majority of the 2008 contributions were in response to our previously
announced domestic franchise system support
initiatives.
|
7
|
(c)
|
The
increases in the provisions for uncollectible accounts and notes
receivable were primarily due to our evaluation of the collectibility of
our loan issued in connection with the 2006 sale of the Perfect Pizza
operation and a loan issued to one domestic
franchisee.
|
|
(d)
|
The
2007 results included the write-off of certain obsolete corporate
equipment and software.
|
The
company recorded reductions in its customary income tax expense of $1.2 million
and $1.7 million for the fourth quarter and full year of 2008, compared to $1.0
million and $3.4 million for the prior comparable periods, due to the
finalization of certain income tax issues. The effective income tax rate was
35.2% for the full year ended December 28, 2008, compared to 28.9% in the
corresponding 2007 period.
Cash
Flow
Cash flow from operations was $73.1
million for the full year 2008 as compared to $61.6 million for the comparable
period in 2007. The consolidation of BIBP decreased cash flow from operations by
approximately $10.5 million and $31.7 million in 2008 and 2007, respectively.
Excluding the impact of the consolidation of BIBP, cash flow from operations was
$83.6 million in 2008, as compared to $93.3 million in the corresponding 2007
period. The $9.7 million decrease was primarily due to a decrease in net income
and a decline in working capital.
Form 10-K
Filing
See the Management’s Discussion and
Analysis of Financial Condition and Results of Operations section of our annual
Form 10-K filed with the Securities and Exchange Commission for additional
information concerning our operating results and cash flow for the full year
ended December 28, 2008.
Domestic Comparable Sales
and Unit Count
Domestic system-wide comparable sales
for the fourth quarter of 2008 decreased 2.0% (comprised of a 1.3% decrease at
company-owned restaurants and a 2.2% decrease at franchised restaurants). Domestic system-wide
comparable sales for the full year 2008 increased 0.9% (comprised of a 1.7%
increase at company-owned restaurants and a 0.6% increase at franchised
restaurants). The comparable sales percentage represents the change in
year-over-year sales for the same base of restaurants for the same calendar
period.
During
the fourth quarter of 2008, 32 domestic restaurants were opened (five
company-owned and 27 franchised) and 17 domestic franchised restaurants were
closed. On a year-to-date basis, 112 domestic restaurants were opened (14
company-owned and 98 franchised) and 80 restaurants were closed (nine
company-owned and 71 franchised). Our total domestic development pipeline as of
December 28, 2008 included approximately 300 restaurants scheduled to open over
the next ten years.
8
At
December 28, 2008, there were 3,380 domestic and international Papa John’s
restaurants (615 company-owned and 2,765 franchised) operating in all 50 states
and 29 countries. The company-owned unit count includes 128 restaurants operated
in majority-owned domestic joint venture arrangements, the operating results of
which are fully consolidated into the company’s results.
International
Update
Highlights:
|
|
·
|
During
the fourth quarter of 2008, 53 international restaurants were opened (one
company-owned and 52 franchised) while five franchised restaurants were
closed. For the full year 2008, 155 international restaurants were opened
(ten company-owned and 145 franchised) while 15 restaurants were closed
(two company-owned and 13
franchised).
|
|
|
·
|
International
franchise sales increased 12.8% to $56.3 million in the fourth quarter of
2008 (the increase in the fourth quarter would have approximated 25%
without the negative impact of foreign currency exchange rates), from
$49.9 million in the prior year comparable period and increased 25.5% to
$221.0 million for the full year 2008, from $176.1 million in the prior
year comparable period.
|
|
|
·
|
During
the quarter, we opened our first franchised restaurants in Malaysia;
Quebec, Canada; Saskatchewan, Canada; and West Ontario,
Canada.
|
|
|
·
|
We
entered into an agreement for the development of ten units in Panama,
which are scheduled to open over the next five years. The first opening is
scheduled during 2009. We also opened our first unit in the Dominican
Republic in January 2009 under a 20 unit development
agreement.
|
As of
December 28, 2008, the company had a total of 588 restaurants operating
internationally (23 company-owned and 565 franchised), of which 199 were located
in Korea and China and 118 were located in the United Kingdom and Ireland. Our
total international development pipeline as of December 28, 2008 included
approximately 1,200 restaurants scheduled to open over the next ten
years.
9
Refranchising Initiative
Update
During
the fourth quarter, we sold 62 domestic restaurants to franchisees. The
restaurants were primarily located in three markets. Total consideration for the
sale of the restaurants was $10.5 million, consisting of cash proceeds of $2.1
million and loans financed by Papa John’s for $8.4 million. The annual revenues
of the divested restaurants approximated $38 million. In addition, at the end of
2008, we have classified 17 domestic restaurants, located in two markets, as
held for sale.
At
December 28, 2008, company-owned and majority-owned joint venture units
represented 21.2% of total domestic restaurants (reduced from 23.5% at December
30, 2007). The company's previously stated goal is to reduce the percentage of
domestic-owned company units to below 20% although the current economic and
credit environment may negatively impact near-term refranchising
activity.
Share Repurchase
Activity
The
company repurchased 1.4 million shares of its common stock at an average price
of $26.93 per share, or a total of $37.7 million, during 2008 (no significant
repurchases in the fourth quarter). A total of 260,000 shares of common stock
were issued upon the exercise of stock options for the full year ended December
28, 2008 (no significant exercises in the fourth quarter). Subsequent to
year-end, through February 17, 2009, the company repurchased an additional $4.8
million of common stock (264,000 shares at an average price of $17.98 per share)
under its Rule 10b5-1 trading plan. At February 17, 2009, $57.5 million remained
available for repurchase under our current authorization.
There
were 27.6 million diluted weighted average shares outstanding for the fourth
quarter of 2008, as compared to 29.0 million for the same period in 2007, a 4.8%
decrease. Approximately 27.6 million actual shares of the company’s common stock
were outstanding as of December 28, 2008.
The
company’s share repurchase activity increased earnings per diluted share,
excluding the impact of the consolidation of BIBP, by $0.01 and $0.02 for the
fourth quarter and full-year 2008 periods, respectively.
2009 Earnings Guidance
Increased
The
company is increasing its 2009 earnings per diluted share guidance from the
previous range of $1.32 to $1.40 to an updated range of $1.36 to $1.44. The
comparable base earnings results for 2008 were $1.68 per diluted share. The
projected earnings guidance excludes any impact from the consolidation of the
results of BIBP. The 2009 guidance includes $0.30 to $0.35 per diluted share
unfavorable impact of 2009 initiatives, including the impact of the franchise
support initiatives, CEO transition costs and certain additional initiatives
focused on enhancing quality and driving alternative ordering channels, none of
which is expected to reoccur in 2010.
10
In
November 2008, we announced a modification to the 2009 BIBP pricing formula
whereby the price of cheese would be established on a quarterly basis as the
greater of $1.75 per pound or the expected average price per pound based on the
futures market projections for the quarter. As a result of subsequent
significant decreases in both the spot and futures market prices of cheese, we
have determined that further modification of the BIBP pricing formula is
warranted. Effective in March 2009, we will modify the BIBP formula to establish
the price of cheese to restaurants monthly based on a sliding scale premium over
the futures market projections for the period. Based on current futures market
projections, the modified formula will result in an approximate 0.5% reduction
in food cost at the restaurant level for the year as compared to the previous
formula and projections. Under this new price formula, we anticipate BIBP will
substantially repay the cumulative deficit by the end of 2011.
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,” “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 statements
may relate to projections concerning revenue, earnings 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: changes in pricing or other
marketing or promotional strategies by competitors which may adversely affect
sales; new product and concept developments by food industry competitors; the
ability of the company and its franchisees to meet planned growth targets and
operate new and existing restaurants profitably; general economic conditions and
resulting impact on consumer buying habits; increases in or sustained high costs
of food ingredients and other commodities, paper, utilities, fuel, employee
compensation and benefits, insurance and similar costs; changes in consumer
preferences; the ability of the company to pass along such increases in or
sustained high costs to franchisees; and the impact of legal claims and current
proposed legislation impacting our business. These and other risk factors are
discussed in detail in “Part I. Item 1A. - Risk Factors” of the Annual Report on
Form 10-K for the fiscal year ended December 28, 2008. We undertake
no obligation to update publicly any forward-looking statements, whether as a
result of future events, new information or otherwise.
11
Conference
Call
A conference call is scheduled for
February 25, 2009 at 10:00 a.m. Eastern Standard Time to review fourth quarter
and full year earnings results. The call can be accessed from the company’s web
page at www.papajohns.com in
a listen-only mode, or dial 800-487-2662 (pass code 32148028) for participation
in the question and answer session. International participants may dial
706-679-8452 (pass code 32148028).
The
conference call will be available for replay, including downloadable podcast,
beginning February 25, 2009, at approximately noon Eastern Standard Time,
through March 4. The replay can be accessed from the company’s web page at www.papajohns.com or
by dialing 800-642-1687 (pass code 32148028). International participants may
dial 706-645-9291 (pass code 32148028).
12
Summary
Financial Data
Papa
John's International, Inc.
(Unaudited)
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
Dec. 28,
|
Dec. 30,
|
Dec. 28,
|
Dec. 30,
|
|||||||||||||
|
(In thousands, except per share amounts)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
|
Revenues
|
$ | 279,646 | $ | 283,940 | $ | 1,132,087 | $ | 1,063,595 | ||||||||
|
Income
before income taxes *
|
$ | 19,435 | $ | 10,366 | $ | 56,776 | $ | 46,028 | ||||||||
|
Net
income
|
$ | 12,776 | $ | 7,744 | $ | 36,796 | $ | 32,735 | ||||||||
|
Earnings
per share - assuming dilution
|
$ | 0.46 | $ | 0.27 | $ | 1.30 | $ | 1.09 | ||||||||
|
Weighted
average shares outstanding - assuming dilution
|
27,639 | 28,985 | 28,264 | 30,017 | ||||||||||||
|
EBITDA
(1)
|
$ | 28,985 | $ | 20,677 | $ | 96,310 | $ | 83,913 | ||||||||
*The
following is a summary of our income (loss) before income taxes (in
thousands):
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
Dec. 28,
|
Dec. 30,
|
Dec. 28,
|
Dec. 30,
|
|||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Domestic
company-owned restaurants (A)
|
$ | 6,109 | $ | 6,164 | $ | 19,997 | $ | 25,407 | ||||||||
|
Domestic
commissaries
|
8,036 | 8,255 | 30,235 | 35,847 | ||||||||||||
|
Domestic
franchising
|
13,444 | 14,729 | 53,610 | 51,466 | ||||||||||||
|
International
(B)
|
(2,741 | ) | (2,360 | ) | (7,193 | ) | (8,734 | ) | ||||||||
|
All
others
|
3,618 | 2,303 | 9,175 | 6,348 | ||||||||||||
|
Unallocated
corporate expenses
|
(9,268 | ) | (6,304 | ) | (36,154 | ) | (31,454 | ) | ||||||||
|
Minority
interests and other
|
(650 | ) | (82 | ) | (2,354 | ) | (1,143 | ) | ||||||||
|
Income
before income taxes, excluding VIEs
|
18,548 | 22,705 | 67,316 | 77,737 | ||||||||||||
|
VIEs,
primarily BIBP (2)
|
887 | (12,339 | ) | (10,540 | ) | (31,709 | ) | |||||||||
|
Total
income before income taxes
|
$ | 19,435 | $ | 10,366 | $ | 56,776 | $ | 46,028 | ||||||||
|
(A)
|
Includes
pre-tax losses of $1.4 million and $6.5 million in the fourth quarter and
year ended December 28, 2008, respectively, and pre-tax losses of $1.3
million and $1.8 million in the fourth quarter and year ended December 30,
2007, respectively, associated with restaurant closure, impairment and
disposition losses.
|
|
(B)
|
Includes a goodwill
impairment charge of $2.3 million in both the fourth quarter and year
ended December 28, 2008, associated
with our PJUK
operations.
|
13
Summary
Financial Data (continued)
Papa
John's International, Inc.
(Unaudited)
The
following is a reconciliation of EBITDA to net income (in
thousands):
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||
|
Dec. 28,
|
Dec. 30,
|
Dec. 28,
|
Dec. 30,
|
|||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
EBITDA
(1)
|
$ | 28,985 | $ | 20,677 | $ | 96,310 | $ | 83,913 | ||||||||
|
Income
tax expense
|
(6,659 | ) | (2,622 | ) | (19,980 | ) | (13,293 | ) | ||||||||
|
Net
interest
|
(1,704 | ) | (1,840 | ) | (6,688 | ) | (6,019 | ) | ||||||||
|
Depreciation
and amortization
|
(7,846 | ) | (8,471 | ) | (32,846 | ) | (31,866 | ) | ||||||||
|
Net
income
|
$ | 12,776 | $ | 7,744 | $ | 36,796 | $ | 32,735 | ||||||||
|
(1)
|
Management
considers EBITDA to be a meaningful indicator of operating performance
from operations before depreciation, amortization, net interest and income
taxes. EBITDA provides us with an understanding of one aspect of earnings
before the impact of investing and financing transactions and income
taxes. While EBITDA should not be construed as a substitute for net income
or a better indicator of liquidity than cash flows from operating
activities, which are determined in accordance with accounting principles
generally accepted in the United States (“GAAP”), it is included herein to
provide additional information with respect to the ability of the company
to meet its future debt service, capital expenditure and working capital
requirements. EBITDA is not necessarily a measure of the company’s ability
to fund its cash needs and it excludes components that are significant in
understanding and assessing our results of operations and cash flows. In
addition, EBITDA is not a term defined by GAAP and as a result our measure
of EBITDA might not be comparable to similarly titled measures used by
other companies. The above EBITDA calculation includes the operating
results of BIBP Commodities, Inc., a variable interest
entity.
|
|
(2)
|
BIBP
generated operating income of approximately $900,000 in the fourth quarter
of 2008, which was composed of income associated with cheese sold to
domestic company-owned restaurants and franchise restaurants of
approximately $300,000 and $1.0 million, respectively, partially offset by
interest expense on outstanding debt with a third-party bank and Papa
John’s. For the fourth quarter of 2007, BIBP reported an operating loss of
$12.3 million, which was primarily composed of losses associated with
cheese sold to domestic company-owned restaurants and franchise
restaurants of $3.0 million and $8.8 million, respectively. The remainder
of the loss was primarily composed of interest expense on outstanding debt
with a third-party bank and Papa
John’s.
|
BIBP
incurred an operating loss of $10.5 million for the full year 2008, which was
primarily composed of losses associated with cheese sold to domestic
company-owned restaurants and franchise restaurants of $2.1 million and $6.3
million, respectively. The remainder of the 2008 loss was primarily composed of
interest expense on outstanding debt with a third-party bank and Papa John’s.
For the full year 2007, BIBP reported operating losses of $31.7 million, which
was primarily composed of losses associated with cheese sold to domestic
company-owned restaurants and franchise restaurants of $8.0 million and $22.9
million, respectively. The remainder of the 2007 loss was primarily composed of
interest expense on outstanding debt with a third-party bank and Papa
John’s.
* * * *
For more
information about the company, please visit www.papajohns.com.
14
Papa
John's International, Inc. and Subsidiaries
Consolidated
Statements of Income
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
December 28, 2008
|
December 30, 2007
|
December 28, 2008
|
December 30, 2007
|
|||||||||||||
|
(In thousands, except per share amounts)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Domestic:
|
||||||||||||||||
|
Company-owned
restaurant sales
|
$ | 129,923 | $ | 136,043 | $ | 533,255 | $ | 504,330 | ||||||||
|
Variable
interest entities restaurant sales
|
2,035 | 1,980 | 8,328 | 7,131 | ||||||||||||
|
Franchise
royalties
|
15,122 | 13,927 | 59,704 | 55,283 | ||||||||||||
|
Franchise
and development fees
|
239 | 2,853 | 1,600 | 4,758 | ||||||||||||
|
Commissary
sales
|
107,896 | 104,923 | 429,068 | 399,099 | ||||||||||||
|
Other
sales
|
14,493 | 14,979 | 61,415 | 61,820 | ||||||||||||
|
International:
|
||||||||||||||||
|
Royalties
and franchise and development fees
|
3,414 | 3,129 | 12,868 | 10,314 | ||||||||||||
|
Restaurant
and commissary sales
|
6,524 | 6,106 | 25,849 | 20,860 | ||||||||||||
|
Total
revenues
|
279,646 | 283,940 | 1,132,087 | 1,063,595 | ||||||||||||
|
Costs
and expenses:
|
||||||||||||||||
|
Domestic
Company-owned restaurant expenses:
|
||||||||||||||||
|
Cost
of sales
|
28,420 | 32,906 | 120,545 | 112,773 | ||||||||||||
|
Salaries
and benefits
|
37,597 | 40,802 | 158,276 | 152,043 | ||||||||||||
|
Advertising
and related costs
|
11,814 | 12,061 | 48,547 | 47,121 | ||||||||||||
|
Occupancy
costs
|
8,446 | 8,405 | 34,973 | 31,866 | ||||||||||||
|
Other
operating expenses
|
17,767 | 18,326 | 72,349 | 68,460 | ||||||||||||
|
Total
domestic Company-owned restaurant expenses
|
104,044 | 112,500 | 434,690 | 412,263 | ||||||||||||
|
Variable
interest entities restaurant expenses
|
1,815 | 1,721 | 7,360 | 6,018 | ||||||||||||
|
Domestic
commissary and other expenses:
|
||||||||||||||||
|
Cost
of sales
|
91,169 | 88,438 | 363,042 | 332,163 | ||||||||||||
|
Salaries
and benefits
|
8,270 | 8,126 | 35,090 | 34,622 | ||||||||||||
|
Other
operating expenses
|
9,660 | 10,706 | 45,732 | 43,766 | ||||||||||||
|
Total
domestic commissary and other expenses
|
109,099 | 107,270 | 443,864 | 410,551 | ||||||||||||
|
(Income)
loss from the franchise cheese-purchasing program, net of minority
interest
|
(1,039 | ) | 8,821 | 6,296 | 22,853 | |||||||||||
|
International
operating expenses
|
5,464 | 5,697 | 22,822 | 18,718 | ||||||||||||
|
General
and administrative expenses
|
19,102 | 23,437 | 99,723 | 101,340 | ||||||||||||
|
Minority
interests and other general expenses
|
12,176 | 3,817 | 21,022 | 7,939 | ||||||||||||
|
Depreciation
and amortization
|
7,846 | 8,471 | 32,846 | 31,866 | ||||||||||||
|
Total
costs and expenses
|
258,507 | 271,734 | 1,068,623 | 1,011,548 | ||||||||||||
|
Operating
income
|
21,139 | 12,206 | 63,464 | 52,047 | ||||||||||||
|
Net
interest
|
(1,704 | ) | (1,840 | ) | (6,688 | ) | (6,019 | ) | ||||||||
|
Income
before income taxes
|
19,435 | 10,366 | 56,776 | 46,028 | ||||||||||||
|
Income
tax expense
|
6,659 | 2,622 | 19,980 | 13,293 | ||||||||||||
|
Net
income
|
$ | 12,776 | $ | 7,744 | $ | 36,796 | $ | 32,735 | ||||||||
|
Basic
earnings per common share
|
$ | 0.46 | $ | 0.27 | $ | 1.31 | $ | 1.10 | ||||||||
|
Earnings
per common share - assuming dilution
|
$ | 0.46 | $ | 0.27 | $ | 1.30 | $ | 1.09 | ||||||||
|
Basic
weighted average shares outstanding
|
27,639 | 28,837 | 28,124 | 29,666 | ||||||||||||
|
Diluted
weighted average shares outstanding
|
27,639 | 28,985 | 28,264 | 30,017 | ||||||||||||
|
Note:
|
The
statements of income for the years ended December 28, 2008 and December
30, 2007 have been derived from the audited consolidated financial
statements at those dates, 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.
|
15
Papa
John's International, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
|
December 28,
|
December 30,
|
|||||||
|
2008
|
2007
|
|||||||
|
(Note)
|
(Note)
|
|||||||
|
(In
thousands)
|
||||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 10,987 | $ | 8,877 | ||||
|
Accounts
receivable
|
23,775 | 22,539 | ||||||
|
Inventories
|
16,872 | 18,806 | ||||||
|
Prepaid
expenses
|
9,797 | 10,711 | ||||||
|
Other
current assets
|
5,275 | 5,581 | ||||||
|
Assets
held for sale
|
1,540 | - | ||||||
|
Deferred
income taxes
|
7,102 | 7,147 | ||||||
|
Total
current assets
|
75,348 | 73,661 | ||||||
|
Investments
|
530 | 825 | ||||||
|
Net
property and equipment
|
189,992 | 198,957 | ||||||
|
Notes
receivable
|
7,594 | 11,804 | ||||||
|
Deferred
income taxes
|
17,518 | 12,384 | ||||||
|
Goodwill
|
76,914 | 86,505 | ||||||
|
Other
assets
|
18,572 | 17,681 | ||||||
|
Total
assets
|
$ | 386,468 | $ | 401,817 | ||||
|
Liabilities
and stockholders' equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 29,148 | $ | 31,157 | ||||
|
Income
and other taxes
|
9,685 | 10,866 | ||||||
|
Accrued
expenses
|
54,220 | 56,466 | ||||||
|
Current
portion of debt
|
7,075 | 8,700 | ||||||
|
Total
current liabilities
|
100,128 | 107,189 | ||||||
|
Unearned
franchise and development fees
|
5,916 | 6,284 | ||||||
|
Long-term
debt, net of current portion
|
123,579 | 134,006 | ||||||
|
Other
long-term liabilities
|
26,859 | 27,435 | ||||||
|
Total
liabilities
|
256,482 | 274,914 | ||||||
|
Total
stockholders' equity
|
129,986 | 126,903 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 386,468 | $ | 401,817 | ||||
|
Note:
|
The
balance sheets at December 28, 2008 and December 30, 2007 have been
derived from the audited consolidated financial statements at those dates,
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.
|
16
Papa
John's International, Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
|
Year Ended
|
||||||||
|
(In thousands)
|
December 28, 2008
|
December 30, 2007
|
||||||
|
Operating
activities
|
||||||||
|
Net
income
|
$ | 36,796 | $ | 32,735 | ||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
|
Restaurant
closure, impairment and disposition losses
|
8,818 | 1,807 | ||||||
|
Provision
for uncollectible accounts and notes receivable
|
5,769 | 1,718 | ||||||
|
Depreciation
and amortization
|
32,846 | 31,866 | ||||||
|
Deferred
income taxes
|
(3,608 | ) | (10,779 | ) | ||||
|
Stock-based
compensation expense
|
2,564 | 4,883 | ||||||
|
Excess
tax benefit related to exercise of non-qualified stock
options
|
(771 | ) | (3,325 | ) | ||||
|
Other
|
1,255 | 5,564 | ||||||
|
Changes
in operating assets and liabilities, net of acquisitions:
|
||||||||
|
Accounts
receivable
|
(5,162 | ) | (183 | ) | ||||
|
Inventories
|
1,833 | 7,915 | ||||||
|
Prepaid
expenses
|
914 | (3,402 | ) | |||||
|
Other
current assets
|
446 | 2,468 | ||||||
|
Other
assets and liabilities
|
(2,913 | ) | (7,092 | ) | ||||
|
Accounts
payable
|
(2,009 | ) | 1,893 | |||||
|
Income
and other taxes
|
(1,181 | ) | (3,656 | ) | ||||
|
Accrued
expenses
|
(2,166 | ) | 457 | |||||
|
Unearned
franchise and development fees
|
(368 | ) | (1,278 | ) | ||||
|
Net
cash provided by operating activities
|
73,063 | 61,591 | ||||||
|
Investing
activities
|
||||||||
|
Purchase
of property and equipment
|
(29,271 | ) | (31,148 | ) | ||||
|
Purchase
of investments
|
(632 | ) | (303 | ) | ||||
|
Proceeds
from sale or maturity of investments
|
927 | 731 | ||||||
|
Loans
issued
|
(1,468 | ) | (6,541 | ) | ||||
|
Loan
repayments
|
2,017 | 6,257 | ||||||
|
Acquisitions
|
(183 | ) | (24,983 | ) | ||||
|
Proceeds
from divestitures of restaurants
|
2,145 | 632 | ||||||
|
Other
|
233 | 32 | ||||||
|
Net
cash used in investing activities
|
(26,232 | ) | (55,323 | ) | ||||
|
Financing
activities
|
||||||||
|
Net
proceeds (repayments) from line of credit facility
|
(10,500 | ) | 37,500 | |||||
|
Net
proceeds (repayments) from short-term debt - variable interest
entities
|
(1,625 | ) | 8,175 | |||||
|
Excess
tax benefit related to exercise of non-qualified stock
options
|
771 | 3,325 | ||||||
|
Proceeds
from exercise of stock options
|
4,623 | 12,219 | ||||||
|
Acquisition
of Company common stock
|
(37,697 | ) | (72,871 | ) | ||||
|
Other
|
299 | 1,035 | ||||||
|
Net
cash used in financing activities
|
(44,129 | ) | (10,617 | ) | ||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
(592 | ) | 247 | |||||
|
Change
in cash and cash equivalents
|
2,110 | (4,102 | ) | |||||
|
Cash
and cash equivalents at beginning of year
|
8,877 | 12,979 | ||||||
|
Cash
and cash equivalents at end of year
|
$ | 10,987 | $ | 8,877 | ||||
|
Note:
|
The
cash flows at December 28, 2008 and December 30, 2007 have been derived
from the audited consolidated financial statements at those dates, 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.
|
17
Restaurant
Progression
Papa
John's International, Inc.
|
Fourth Quarter Ended December 28, 2008
|
||||||||||||||||||||
|
Corporate
|
Franchised
|
|||||||||||||||||||
|
Domestic
|
Int'l
|
Domestic
|
Int'l
|
Total
|
||||||||||||||||
|
Papa
John's restaurants
|
||||||||||||||||||||
|
Beginning
of period
|
649 | 21 | 2,128 | 519 | 3,317 | |||||||||||||||
|
Opened
|
5 | 1 | 27 | 52 | 85 | |||||||||||||||
|
Closed
|
- | - | (17 | ) | (5 | ) | (22 | ) | ||||||||||||
|
Acquired
|
- | 1 | 62 | - | 63 | |||||||||||||||
|
Sold
|
(62 | ) | - | - | (1 | ) | (63 | ) | ||||||||||||
|
End
of Period
|
592 | 23 | 2,200 | 565 | 3,380 | |||||||||||||||
|
Fourth Quarter Ended December 30, 2007
|
||||||||||||||||||||
|
Corporate
|
Franchised
|
|||||||||||||||||||
|
Domestic
|
Int'l
|
Domestic
|
Int'l
|
Total
|
||||||||||||||||
|
Papa
John's restaurants
|
||||||||||||||||||||
|
Beginning
of period
|
649 | 11 | 2,078 | 401 | 3,139 | |||||||||||||||
|
Opened
|
5 | 3 | 44 | 35 | 87 | |||||||||||||||
|
Closed
|
(6 | ) | - | (10 | ) | (2 | ) | (18 | ) | |||||||||||
|
Acquired
|
- | - | - | - | - | |||||||||||||||
|
Sold
|
- | - | - | - | - | |||||||||||||||
|
End
of Period
|
648 | 14 | 2,112 | 434 | 3,208 | |||||||||||||||
18
Restaurant
Progression
Papa
John's International, Inc.
|
Year Ended December 28, 2008
|
||||||||||||||||||||
|
Corporate
|
Franchised
|
|||||||||||||||||||
|
Domestic
|
Int'l
|
Domestic
|
Int'l
|
Total
|
||||||||||||||||
|
Papa
John's restaurants
|
||||||||||||||||||||
|
Beginning
of period
|
648 | 14 | 2,112 | 434 | 3,208 | |||||||||||||||
|
Opened
|
14 | 10 | 98 | 145 | 267 | |||||||||||||||
|
Closed
|
(9 | ) | (2 | ) | (71 | ) | (13 | ) | (95 | ) | ||||||||||
|
Acquired
|
1 | 1 | 62 | - | 64 | |||||||||||||||
|
Sold
|
(62 | ) | - | (1 | ) | (1 | ) | (64 | ) | |||||||||||
|
End
of Period
|
592 | 23 | 2,200 | 565 | 3,380 | |||||||||||||||
|
Year Ended December 30, 2007
|
||||||||||||||||||||
|
Corporate
|
Franchised
|
|||||||||||||||||||
|
Domestic
|
Int'l
|
Domestic
|
Int'l
|
Total
|
||||||||||||||||
|
Papa
John's restaurants
|
||||||||||||||||||||
|
Beginning
of period
|
577 | 11 | 2,080 | 347 | 3,015 | |||||||||||||||
|
Opened
|
20 | 4 | 140 | 99 | 263 | |||||||||||||||
|
Closed
|
(9 | ) | - | (48 | ) | (13 | ) | (70 | ) | |||||||||||
|
Acquired
|
61 | 2 | 1 | 3 | 67 | |||||||||||||||
|
Sold
|
(1 | ) | (3 | ) | (61 | ) | (2 | ) | (67 | ) | ||||||||||
|
End
of Period
|
648 | 14 | 2,112 | 434 | 3,208 | |||||||||||||||
19