Published on February 23, 2010
Exhibit
99.1
For
more information, contact:
David
Flanery
Chief
Financial Officer
502-261-4753
PAPA
JOHN’S ANNOUNCES
FOURTH
QUARTER AND FULL-YEAR 2009 EARNINGS
2010
Earnings Guidance Reaffirmed
Highlights
|
|
·
|
Fourth quarter earnings per
diluted share of $0.49 in 2009 vs. $0.46 in 2008 and full-year earnings
per diluted share of $2.06 in 2009 vs. $1.30 in
2008
|
|
|
·
|
Fourth quarter earnings per
diluted share, excluding noted items, were $0.41 in 2009 vs. $0.48 in 2008
and full-year earnings per diluted share, excluding noted items, were
$1.50 in 2009 vs. $1.68 in
2008
|
|
|
·
|
Domestic system-wide comparable
sales decreased 0.5% for the quarter and were even for the
year
|
|
|
·
|
International franchise system
sales increased 18% for the quarter (13% excluding the impact of foreign
currency exchange rates) and 14% for the year (24% excluding the impact of
foreign currency exchange
rates)
|
|
|
·
|
11 net Papa John’s worldwide
unit openings during the quarter and 89 net openings during the
year
|
|
|
·
|
Earnings guidance for 2010
reaffirmed at a range of $1.70 to $1.90 per diluted share, excluding the
impact of consolidating BIBP
|
Louisville, Kentucky (February 23,
2010) – Papa John’s International, Inc. (NASDAQ: PZZA) today announced revenues
of $280.5 million for the fourth quarter of 2009, compared to revenues of $279.6
million in 2008. Net income for the fourth quarter of 2009 was $13.7 million, or
$0.49 per diluted share (including after-tax income of $1.3 million, or $0.05
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 $1.0 million, or $0.03 per diluted share, from the
finalization of certain income tax issues), compared to 2008 fourth quarter net
income of $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 BIBP, a gain
of $1.2 million, or $0.04 per diluted share, from the finalization of certain
income tax issues and an after-tax charge of $2.2 million, or $0.08 per diluted
share, related to restaurant impairment and disposition
losses).
Consolidated revenues for 2009 were
$1.11 billion, representing a decrease of 2.3% from revenues of $1.13 billion
for 2008. Net income for 2009 was $57.5 million, or $2.06 per diluted share
(including after-tax income of $14.6 million, or $0.52 per diluted share, from
the consolidation of BIBP and a gain of $1.0 million, or $0.04 per diluted
share, from the finalization of certain income tax issues), compared to net
income of $36.8 million, or $1.30 per diluted share, for 2008 (including a net
loss of $6.9 million, or $0.24 per diluted share, from the consolidation of
BIBP, a gain of $1.7 million or $0.06 per diluted share from the finalization of
certain income tax issues and an after-tax charge of $5.5 million, or $0.20 per
diluted share, related to restaurant impairment and disposition
losses).
“Our system had a solid fourth quarter
and a very good 2009 in a challenging consumer environment,” said Papa John’s
founder, chairman and chief executive officer, John Schnatter. “The investments
made in our system over the last 15 months, supported by a favorable commodities
environment, helped drive positive transaction momentum and some of the most
profitable unit economics in the history of our company.”
Non-GAAP
Measures
Certain components of the financial
information we present in this press release that exclude the impact of the
consolidation of BIBP, the finalization of certain income tax issues and
restaurant 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. 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 quarters and years ended December
27, 2009 and December 28, 2008.
|
Fourth
Quarter
|
Year
Ended
|
|||||||||||||||
|
Dec.
27,
|
Dec.
28,
|
Dec.
27,
|
Dec.
28,
|
|||||||||||||
|
(In
thousands, except per share amounts)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
Pre-tax
income, net of noncontrolling interests, as reported
|
$ | 18,591 | $ | 19,435 | $ | 86,438 | $ | 56,776 | ||||||||
|
(Gain)
loss from BIBP cheese purchasing entity
|
(1,560 | ) | (887 | ) | (22,543 | ) | 10,540 | |||||||||
|
Restaurant
impairment and disposition losses (a)
|
- | 3,747 | - | 8,818 | ||||||||||||
|
Pre-tax
income, net of noncontrolling interests, excluding noted
items
|
$ | 17,031 | $ | 22,295 | $ | 63,895 | $ | 76,134 | ||||||||
|
Net
income, as reported
|
$ | 13,698 | $ | 12,776 | $ | 57,453 | $ | 36,796 | ||||||||
|
(Gain)
loss from BIBP cheese purchasing entity
|
(1,300 | ) | (576 | ) | (14,586 | ) | 6,851 | |||||||||
|
Restaurant
impairment and disposition losses (a)
|
- | 2,222 | - | 5,496 | ||||||||||||
|
Gain
from finalization of certain income tax issues
|
(967 | ) | (1,203 | ) | (967 | ) | (1,684 | ) | ||||||||
|
Net
income, excluding noted items
|
$ | 11,431 | $ | 13,219 | $ | 41,900 | $ | 47,459 | ||||||||
|
Earnings
per diluted share, as reported
|
$ | 0.49 | $ | 0.46 | $ | 2.06 | $ | 1.30 | ||||||||
|
(Gain)
loss from BIBP cheese purchasing entity
|
(0.05 | ) | (0.02 | ) | (0.52 | ) | 0.24 | |||||||||
|
Restaurant
impairment and disposition losses (a)
|
- | 0.08 | - | 0.20 | ||||||||||||
|
Gain
from finalization of certain income tax issues
|
(0.03 | ) | (0.04 | ) | (0.04 | ) | (0.06 | ) | ||||||||
|
Earnings
per diluted share, excluding noted items
|
$ | 0.41 | $ | 0.48 | $ | 1.50 | $ | 1.68 | ||||||||
|
Cash
flow from operations, as reported
|
$ | 100,913 | $ | 73,063 | ||||||||||||
|
BIBP
cheese purchasing entity
|
(22,543 | ) | 10,540 | |||||||||||||
|
Cash
flow from operations, excluding BIBP
|
$ | 78,370 | $ | 83,603 | ||||||||||||
(a) Amounts
were not significant in 2009.
Revenues
Comparison
Consolidated revenues were $280.5
million for the fourth quarter of 2009, an increase of $800,000, or 0.3%, over
the corresponding 2008 period. The change in revenues for the fourth quarter of
2009 was primarily due to the following:
|
|
·
|
Domestic
company-owned restaurant sales decreased $4.8 million, reflecting the sale
of 62 lower-performing company-owned restaurants to franchisees during the
fourth quarter of 2008 and a decrease of 1.4% in comparable sales during
the fourth quarter of 2009.
|
3
|
|
·
|
Variable
interest entities restaurant sales increased $8.5 million due to the
consolidation of two additional franchise entities, as compared to the
corresponding period in 2008.
|
|
|
·
|
Franchise
royalties increased $800,000 primarily due to an increase in the royalty
rate (increased from 4.25% to 4.50% effective in September
2009).
|
|
|
·
|
Domestic
commissary sales decreased $3.4 million due to decreases in the prices of
certain commodities, primarily cheese and wheat, partially offset by an
increase in volumes.
|
|
|
·
|
Other
sales decreased $1.1 million due primarily to a decline in sales at our
print and promotions subsidiary, Preferred Marketing
Solutions.
|
|
|
·
|
International
revenues increased $1.1 million reflecting increases in both the number
and average unit volumes of our company-owned and franchised restaurants
over the comparable period, partially offset by lower franchise and
development fee revenue due to fewer franchise unit openings in the
current year period.
|
Revenues
were $1.11 billion for the full year of 2009, a decrease of $26.1 million, or
2.3%, as compared to the corresponding 2008 period. The decrease in revenues for
the full year of 2009 was primarily due to the decline in commissary sales
reflecting the price decrease in certain commodities, as noted above and a
decline in sales at our print and promotions subsidiary. The decrease in
company-owned restaurant sales due to the sale of 62 restaurants to franchisees
in the fourth quarter of 2008 was substantially offset by the increase in
variable interest entities restaurant sales due to the consolidation of two
additional franchise entities, as noted above.
Operating Results and Cash
Flow
Operating
Results
Our
pre-tax income, net of noncontrolling interests, for the fourth quarter of 2009
was $18.6 million, compared to $19.4 million for the corresponding period in
2008. For the year ended December 27, 2009, pre-tax income, net of
noncontrolling interests, was $86.4 million compared to $56.8 million for the
corresponding period of 2008. Excluding the impact of the noted items in the
previous table, fourth quarter 2009 pre-tax income, net of noncontrolling
interests, was $17.0 million, a decrease of $5.3 million or 23.6%, from the 2008
comparable results of $22.3 million, and was $63.9 million for the year ended
December 27, 2009, a decrease of $12.2 million, or 16.1%, from the 2008
comparable results of $76.1 million. An analysis of the changes in pre-tax
income, net of noncontrolling interests, for the fourth quarter and full-year
2009, respectively (excluding the consolidation of BIBP), is 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):
|
|
·
|
Domestic Company-owned
Restaurant Segment. Domestic company-owned restaurants’ operating
income increased $800,000 and $14.9 million for the fourth quarter and
full year ended December 27, 2009, respectively, comprised of the
following (in thousands):
|
4
|
Fourth
Quarter
|
Year
Ended
|
|||||||||||||||||||||||
|
Dec.
27,
|
Dec.
28,
|
Increase
|
Dec.
27,
|
Dec.
28,
|
Increase
|
|||||||||||||||||||
|
2009
|
2008
|
(Decrease)
|
2009
|
2008
|
(Decrease)
|
|||||||||||||||||||
|
Operating
income, excluding impairment and disposition losses
|
$ | 7,479 | $ | 7,556 | $ | (77 | ) | $ | 35,551 | $ | 26,515 | $ | 9,036 | |||||||||||
|
Impairment
and disposition losses (1)
|
(567 | ) | (1,447 | ) | 880 | (657 | ) | (6,518 | ) | 5,861 | ||||||||||||||
|
Total
segment operating income
|
$ | 6,912 | $ | 6,109 | $ | 803 | $ | 34,894 | $ | 19,997 | $ | 14,897 | ||||||||||||
|
(1)
|
Total
2008 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.
|
Income
from operations, excluding impairment and disposition losses, was relatively
flat for the fourth quarter of 2009 as compared to the prior year. The increase
of $9.0 million in income from operations, excluding impairment and disposition
losses, for the full-year period was primarily due to lower commodity costs and
the sale of 62 restaurants in late 2008 that were collectively
unprofitable.
Restaurant
operating margins on an external basis were 19.9% and 21.8% for the fourth
quarter and year ended December 27, 2009, respectively, compared to 19.9% and
18.5%, for the comparable 2008 periods. Excluding the impact of the
consolidation of BIBP, restaurant operating margins were 19.6% and 20.7% for the
fourth quarter and year ended December 27, 2009, respectively, compared to 19.7%
and 18.9% in the prior comparable periods.
The
restaurant impairment and disposition losses recorded in 2008 primarily relate
to the above-mentioned sale of restaurants.
|
|
·
|
Domestic Commissary Segment.
Domestic commissaries’ operating income decreased approximately
$1.3 million and $800,000 for the fourth quarter and year ended December
27, 2009, respectively. The decline in operating income for the fourth
quarter of 2009, as compared to the corresponding 2008 period, was
primarily due to pricing reductions. The decline in our full-year 2009
results, as compared to the corresponding 2008 period, was primarily due
to $800,000 of management transition costs and $400,000 of costs
associated with the closing of one of our commissaries. The decline in our
operating income from reductions in pricing was more than offset by a
decline in fuel costs for 2009.
|
5
|
|
·
|
Domestic Franchising Segment.
Domestic franchising operating income increased approximately
$600,000 to $14.1 million for the fourth quarter 2009, as compared to the
corresponding 2008 period, and increased approximately $100,000 to $53.7
million for the year ended December 27, 2009, as compared to the
corresponding 2008 period. The increase for the fourth quarter was
primarily due to an increase in franchise royalties resulting from a 0.25%
increase in the royalty rate (the standard rate increased from 4.25% to
4.50% in September 2009). The impact of the increase in the royalty rate
on domestic franchise operating income for the year ended December 27,
2009 was substantially offset by lower franchise and development fees due
to fewer unit openings and $500,000 in franchise renewal fees collected in
2008 in connection with the domestic franchise renewal program. The impact
of the increased royalty rate for 2009 was also offset partially by
additional development incentive programs offered by the company in 2009.
During the fourth quarter and full year ended December 27, 2009, incentive
payments of $215,000 and $440,000, respectively, were made to certain
franchisees under our 25th
Anniversary development incentive program for opening new units in advance
of previously scheduled dates.
|
|
|
·
|
International Segment.
The operating loss for the international segment improved $2.2
million and $4.1 million for the fourth quarter and year ended December
27, 2009, respectively, comprised of the following (in
thousands):
|
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||||||||||
|
Dec. 27,
|
Dec. 28,
|
Increase
|
Dec. 27,
|
Dec. 28,
|
Increase
|
|||||||||||||||||||
|
2009
|
2008
|
(Decrease)
|
2009
|
2008
|
(Decrease)
|
|||||||||||||||||||
|
Operating
income, excluding goodwill
|
||||||||||||||||||||||||
|
impairment
and other charges
|
$ | (156 | ) | $ | (441 | ) | $ | 285 | $ | (2,586 | ) | $ | (4,893 | ) | $ | 2,307 | ||||||||
|
Goodwill
impairment (a)
|
- | (2,300 | ) | 2,300 | - | (2,300 | ) | 2,300 | ||||||||||||||||
|
Other
(b)
|
(366 | ) | - | (366 | ) | (464 | ) | - | (464 | ) | ||||||||||||||
|
Total
segment operating
|
||||||||||||||||||||||||
|
loss
|
$ | (522 | ) | $ | (2,741 | ) | $ | 2,219 | $ | (3,050 | ) | $ | (7,193 | ) | $ | 4,143 | ||||||||
|
(a)
|
The
goodwill impairment charge was associated with our United Kingdom
operations.
|
|
(b)
|
Includes
pre-opening costs associated with our commissary in the United Kingdom
that is under construction and costs associated with the closure of a
company-owned restaurant in China.
|
The
improvement in operating losses, excluding goodwill impairment and other
charges, for the fourth quarter and year ended December 27, 2009, reflects
increased revenues due to growth in number of units and unit volumes
internationally. The rate of year-over-year improvement declined in the last
half of 2009 due to slowing sales and unit growth attributable to general
worldwide economic conditions.
|
|
·
|
All Others Segment.
Operating income for the “All others” reporting segment decreased
approximately $1.8 million and $6.5 million for the fourth quarter and
year ended December 27, 2009, respectively, as compared to the
corresponding 2008 periods. The decrease for the fourth quarter was
primarily due to a decline of $1.2 million in our online ordering system
business and due to more favorable adjustments in the 2008 period in
claims loss reserves associated with our inactive captive insurance
program. The decrease for the year ended December 27, 2009 was primarily
due to a $3.9 million decline in our online ordering system business, a
$1.3 million decline at our print and promotions subsidiary, Preferred
Marketing Solutions, and the previously mentioned favorable adjustments in
claims loss reserves in 2008. The decline in the online ordering system
business reflected a reduction in the online fee percentage in accordance
with our previously disclosed agreement with the domestic franchise system
to operate the online business at a break-even level beginning in 2009.
The decline in profitability in the print and promotions business was due
to lower sales in 2009, as compared to 2008, reflecting the challenging
U.S. economic environment.
|
6
|
|
·
|
Unallocated
Corporate Segment. Unallocated corporate expenses
increased approximately $1.8 million and $13.6 million for the fourth
quarter and year ended December 27, 2009, respectively, as compared to the
corresponding periods in the prior year. The components of unallocated
corporate expenses were as follows (in
thousands):
|
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||||||||||
|
Dec. 27,
|
Dec. 28,
|
Increase
|
Dec. 27,
|
Dec. 28,
|
Increase
|
|||||||||||||||||||
|
2009
|
2008
|
(decrease)
|
2009
|
2008
|
(decrease)
|
|||||||||||||||||||
|
General
and administrative (a)
|
$ | 4,189 | $ | (974 | ) | $ | 5,163 | $ | 26,893 | $ | 16,372 | $ | 10,521 | |||||||||||
|
Net
interest
|
1,065 | 1,317 | (252 | ) | 4,251 | 4,961 | (710 | ) | ||||||||||||||||
|
Depreciation
|
2,233 | 2,017 | 216 | 8,684 | 7,770 | 914 | ||||||||||||||||||
|
Franchise
support initiatives (b)
|
3,961 | 3,675 | 286 | 9,556 | 3,900 | 5,656 | ||||||||||||||||||
|
Provision
(credit) for uncollectible
|
||||||||||||||||||||||||
|
accounts
and notes receivable (c)
|
(188 | ) | 3,491 | (3,679 | ) | 1,172 | 4,082 | (2,910 | ) | |||||||||||||||
|
Other
expense (income)
|
(194 | ) | (258 | ) | 64 | (801 | ) | (931 | ) | 130 | ||||||||||||||
|
Total
unallocated corporate expenses
|
$ | 11,066 | $ | 9,268 | $ | 1,798 | $ | 49,755 | $ | 36,154 | $ | 13,601 | ||||||||||||
|
(a)
|
The
increases in unallocated general and administrative expenses for the
fourth quarter and full year ended December 27, 2009, were due
to the following factors (in
thousands):
|
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||||||||||
|
Dec. 27,
|
Dec. 28,
|
Increase
|
Dec. 27,
|
Dec. 28,
|
Increase
|
|||||||||||||||||||
|
2009
|
2008
|
(decrease)
|
2009
|
2008
|
(decrease)
|
|||||||||||||||||||
|
Severance
and other management
|
||||||||||||||||||||||||
|
transition
costs (1)
|
$ | - | $ | 125 | $ | (125 | ) | $ | 1,607 | $ | 125 | $ | 1,482 | |||||||||||
|
Short-
and long-term incentive
|
||||||||||||||||||||||||
|
compensation
(2)
|
3,562 | (1,785 | ) | 5,347 | 13,145 | 6,174 | 6,971 | |||||||||||||||||
|
Litigation
settlement
|
- | - | - | 1,065 | - | 1,065 | ||||||||||||||||||
|
Sponsorship
fees (3)
|
724 | 563 | 161 | 3,907 | 3,334 | 573 | ||||||||||||||||||
|
Other
expense (income), net
|
(97 | ) | 123 | (220 | ) | 7,169 | 6,739 | 430 | ||||||||||||||||
|
Total
unallocated general
|
||||||||||||||||||||||||
|
and
administrative expenses
|
$ | 4,189 | $ | (974 | ) | $ | 5,163 | $ | 26,893 | $ | 16,372 | $ | 10,521 | |||||||||||
7
|
(1)
|
In
addition to routine management transition costs, the company implemented a
reduction-in-force during the third quarter of 2009 in which 35 positions
were eliminated, mostly in corporate support areas. Severance and related
costs associated with the reduction-in-force were approximately $900,000,
and this action is expected to reduce future general and administrative
costs by approximately $2.6 million
annually.
|
|
(2)
|
The
increases were primarily due to 2008 reductions in equity-based
compensation expense due to awards forfeited by former members of
executive management upon resignation and a reduction in the expected
payments under certain cash and equity-based compensation programs in
2008. Additionally, expected payments under certain 2009 incentive
programs are higher in relation to improved performance versus
targets.
|
|
(3)
|
The
Sponsorship fees are primarily associated with certain nontraditional
venues, such as Six Flags.
|
|
(b)
|
Franchise
support initiatives primarily consist of discretionary contributions to
the national marketing fund and other local advertising
cooperatives.
|
|
(c)
|
The
fourth quarter and full-year 2008 provisions for uncollectible accounts
and notes receivable included a provision associated with our loan issued
in connection with the 2006 sale of the Perfect Pizza operation and
increased provisions for various loans to domestic
franchisees.
|
The
company recorded reductions in its customary income tax expense of $1.2 million
($1.0 million for Papa John’s and $200,000 for BIBP) in both the fourth quarter
and full year of 2009, compared to $1.2 million and $1.7 million for the fourth
quarter and full year of 2008, respectively, related to the finalization of
certain income tax issues. The effective income tax rate was 25.2% and 32.1% for
the fourth quarter and year ended December 27, 2009, respectively, as compared
to 33.2% and 34.0% for the fourth quarter and year ended December 28, 2008,
respectively (25.9% and 31.1%, excluding BIBP, for the fourth quarter and year
ended December 27, 2009, respectively, and 33.2% and 34.1%, excluding BIBP, for
the fourth quarter and year ended December 28, 2008, respectively).
Cash
Flow
Net cash provided by operating
activities was $100.9 million for the full-year 2009 as compared to $73.1
million for 2008. The consolidation of BIBP increased cash flow from operations
by approximately $22.5 million in 2009 and decreased cash flow from operations
by approximately $10.5 million in 2008. Excluding the impact of the
consolidation of BIBP, cash flow from operations was $78.4 million in 2009, as
compared to $83.6 million in the comparable period in 2008. The $5.2 million
decrease in cash flow from operations, excluding the consolidation of BIBP, was
primarily due to reductions in net income from operations, excluding impairment
and disposition losses.
8
Our net debt position, defined as total
debt less cash and cash equivalents, was $70.8 million at December 27, 2009,
compared to $119.7 million at December 28, 2008.
Form 10-K
Filing
See the Management’s Discussion and
Analysis of Financial Condition and Results of Operations section of our Annual
Report on Form 10-K filed with the Securities and Exchange Commission for
additional information concerning our operating results and cash flow for the
full year ended December 27, 2009.
Domestic Comparable Sales
and Unit Count
Domestic system-wide comparable sales
for the fourth quarter of 2009 decreased 0.5% (comprised of a 1.4% decrease at
company-owned restaurants and a 0.2% decrease at franchised restaurants).
Domestic system-wide comparable sales for the full-year 2009 were even
(comprised of a 0.5% decrease at company-owned restaurants and a 0.1% 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 2009, 21 domestic franchised restaurants were opened and
42 domestic restaurants were closed (two company-owned and 40 franchised).
During the full year of 2009, we opened 84 domestic restaurants (five
company-owned and 79 franchised) and closed 95 restaurants (eight company-owned
and 87 franchised). The 95 closures included 26 non-traditional units closed in
connection with the termination of a third-party sponsorship arrangement. Our
total domestic development pipeline as of December 27, 2009 included
approximately 200 restaurants, a substantial majority of which are scheduled to
open over the next four years.
At
December 27, 2009, there were 3,469 domestic and international Papa John’s
restaurants (614 company-owned and 2,855 franchised) operating in all 50 states
and in 29 countries. The company-owned restaurants include 127 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 2009, we signed development agreements in Columbia
(30 units), Morocco (20 units) and Chile (25 units). We anticipate opening
our first restaurant in each of these countries during
2010.
|
9
|
|
·
|
During
the fourth quarter of 2009, 43 international restaurants were opened
(three company-owned and 40 franchised) while 11 international franchised
restaurants were closed. For the full-year 2009, 132 international
restaurants were opened (four company-owned and 128 franchised) while 32
international restaurants were closed (one company-owned and 31
franchised).
|
|
|
·
|
International
franchise sales increased approximately 18% to $66.5 million in the fourth
quarter of 2009, from $56.3 million in the comparable period in 2008 and
increased approximately 14% to $251.8 million for the full-year 2009, from
$221.0 million in the comparable period in 2008. Excluding the impact of
foreign currency exchange rates, the increases in the fourth quarter and
full-year 2009 would have approximated 13% and 24%,
respectively.
|
As of
December 27, 2009, there were 688 Papa John’s restaurants operating
internationally (26 company-owned and 662 franchised), of which 220 were located
in Korea and China and 142 were located in the United Kingdom and Ireland. Our
total international development pipeline as of December 27, 2009 included
approximately 1,200 restaurants, the substantial majority of which are scheduled
to open over the next eight years.
Share Repurchase
Activity
The
company repurchased 1.0 million shares of its common stock at an average price
of $22.52 per share, or a total of $23.5 million, during the fourth quarter of
2009, and repurchased 1.3 million shares at an average price of $21.59 per
share, or a total of $28.5 million during all of 2009. A total of 14,000 and
612,000 shares of common stock were issued upon the exercise of stock options
for the fourth quarter and full year ended December 27, 2009, respectively.
Subsequent to year-end, through February 16, 2010, the company repurchased an
additional $967,000 of common stock (43,000 shares at an average price of $22.61
per share). At February 16, 2010, $32.8 million remained available for
repurchase under our current authorization.
The
company utilizes a written trading plan under Rule 10b5-1 under the
Securities Exchange Act of 1934, as amended, to facilitate the repurchase of
shares of our common stock under this share repurchase program. There can be no
assurance that we will repurchase shares of our common stock either through our
Rule 10b5-1 trading plan or otherwise. We may terminate the
Rule 10b5-1 trading plan at any time.
There
were 27.7 million diluted weighted average shares outstanding for the fourth
quarter of 2009, as compared to 27.6 million for the same period in 2008.
Approximately 27.2 million actual shares of the company’s common stock were
outstanding as of December 27, 2009.
The
company’s share repurchase activity increased earnings per diluted share,
excluding the impact of the consolidation of BIBP, by $0.02 for the full year of
2009 (no impact for the fourth quarter).
10
2010 Earnings and Comparable
Sales Guidance Reaffirmed
The company reaffirmed its previously
issued guidance for 2010 domestic system-wide comparable sales of a range of
negative 1% to positive 1% and for 2010 earnings per diluted share of a range of
$1.70 to $1.90, excluding the impact of the consolidation of
BIBP.
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, unit growth 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; changes in consumer preferences;
increases in or sustained high costs of food ingredients and other commodities,
paper, utilities, fuel, employee compensation and benefits, insurance and
similar costs; the ability of the company to pass along such increases in or
sustained high costs to franchisees or consumers; the company is contingently
liable for the payment of certain lease arrangements, approximating $5.8
million, involving our former Perfect Pizza operations that were sold in March
2006; the impact of legal claims and current proposed legislation impacting our
business; and increased risks associated with our international operations.
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
27, 2009. 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 24, 2010 at 10:00 a.m. Eastern 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 95830124) for participation
in the question and answer session. International participants may dial
706-679-8452 (pass code 95830124).
The
conference call will be available for replay, including by downloadable podcast,
beginning February 24, 2010, at approximately noon Eastern Time, through March
3, 2010, at midnight Eastern Time. The replay can be accessed from the company’s
web site at www.papajohns.com or
by dialing 800-642-1687 (pass code 95830124). International participants may
dial 706-645-9291 (pass code 95830124).
12
Summary
Financial Data
Papa
John's International, Inc.
(Unaudited)
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||
|
Dec. 27,
|
Dec. 28,
|
Dec. 27,
|
Dec. 28,
|
|||||||||||||
|
(In thousands, except per share amounts)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
Revenues
|
$ | 280,478 | $ | 279,646 | $ | 1,106,033 | $ | 1,132,087 | ||||||||
|
Income before income taxes, net of
|
||||||||||||||||
|
noncontrolling interests*
|
$ | 18,591 | $ | 19,435 | $ | 86,438 | $ | 56,776 | ||||||||
|
Net income
|
$ | 13,698 | $ | 12,776 | $ | 57,453 | $ | 36,796 | ||||||||
|
Earnings per share - assuming dilution
|
$ | 0.49 | $ | 0.46 | $ | 2.06 | $ | 1.30 | ||||||||
|
Weighted average shares outstanding -
|
||||||||||||||||
|
assuming dilution
|
27,679 | 27,639 | 27,909 | 28,264 | ||||||||||||
|
EBITDA (1)
|
$ | 28,301 | $ | 28,985 | $ | 124,279 | $ | 96,310 | ||||||||
*The
following is a summary of our income (loss) before income taxes, net of
noncontrolling interests:
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||
|
Dec. 27,
|
Dec. 28,
|
Dec. 27,
|
Dec. 28,
|
|||||||||||||
|
(in thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
Domestic
company-owned restaurants (A)
|
$ | 6,912 | $ | 6,109 | $ | 34,894 | $ | 19,997 | ||||||||
|
Domestic
commissaries
|
6,758 | 8,036 | 29,393 | 30,235 | ||||||||||||
|
Domestic
franchising
|
14,057 | 13,444 | 53,690 | 53,610 | ||||||||||||
|
International (B)
|
(522 | ) | (2,741 | ) | (3,050 | ) | (7,193 | ) | ||||||||
|
All
others
|
1,786 | 3,618 | 2,697 | 9,175 | ||||||||||||
|
Unallocated
corporate expenses
|
(11,066 | ) | (9,268 | ) | (49,755 | ) | (36,154 | ) | ||||||||
|
Elimination
of intersegment profit
|
(52 | ) | (49 | ) | (218 | ) | (332 | ) | ||||||||
|
Income
before income taxes, excluding VIEs
|
17,873 | 19,149 | 67,651 | 69,338 | ||||||||||||
|
VIEs,
primarily BIBP (2)
|
1,560 | 887 | 22,543 | (10,540 | ) | |||||||||||
|
Less:
noncontrolling interests
|
(842 | ) | (601 | ) | (3,756 | ) | (2,022 | ) | ||||||||
|
Total income before income taxes, net of
|
||||||||||||||||
|
of
noncontrolling interests
|
$ | 18,591 | $ | 19,435 | $ | 86,438 | $ | 56,776 | ||||||||
|
(A)
|
Includes
pre-tax losses of $1.4 million and $6.5 million in the fourth quarter and
year ended December 28, 2008, respectively, associated with
restaurant 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):
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||
|
Dec. 27,
|
Dec. 28,
|
Dec. 27,
|
Dec. 28,
|
|||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
EBITDA
(1)
|
$ | 28,301 | $ | 28,985 | $ | 124,279 | $ | 96,310 | ||||||||
|
Income
tax expense
|
(4,893 | ) | (6,659 | ) | (28,985 | ) | (19,980 | ) | ||||||||
|
Net
interest
|
(1,220 | ) | (1,704 | ) | (5,085 | ) | (6,688 | ) | ||||||||
|
Depreciation
and amortization
|
(8,490 | ) | (7,846 | ) | (32,756 | ) | (32,846 | ) | ||||||||
|
Net
income
|
$ | 13,698 | $ | 12,776 | $ | 57,453 | $ | 36,796 | ||||||||
The
company's free cash flow for the last two years is as follows (in
thousands):
|
Year Ended
|
||||||||
|
Dec. 27,
|
Dec. 28,
|
|||||||
|
2009
|
2008
|
|||||||
|
Net
cash provided by operating activities
|
$ | 100,913 | $ | 73,063 | ||||
|
Gain
(loss) from BIBP cheese purchasing entity
|
(22,543 | ) | 10,540 | |||||
|
Purchase
of property and equipment
|
(33,538 | ) | (29,271 | ) | ||||
|
Free
cash flow (3)
|
$ | 44,832 | $ | 54,332 | ||||
|
|
(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 pre-tax income of approximately $1.6 million in the fourth
quarter of 2009, which was composed of income associated with cheese sold
to domestic company-owned and franchised restaurants of approximately
$400,000 and $1.3 million, respectively, partially offset by interest
expense on outstanding debt with a third party bank and Papa John’s during
the fourth quarter. For the fourth quarter of 2008, BIBP reported pre-tax
income of $900,000, which was primarily composed of income associated with
cheese sold to domestic company-owned and franchised 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.
|
14
BIBP generated pre-tax income of
approximately $22.5 million for the year ended December 27, 2009, which was
composed of income associated with cheese sold to domestic company-owned and
franchised restaurants of approximately $5.5 million and $18.1 million,
respectively, partially offset by interest expense on debt outstanding with a
third-party bank and Papa John’s during 2009. For the year ended December 28,
2008, BIBP reported a pre-tax loss of $10.5 million, which was composed of
losses associated with cheese sold to domestic company-owned and franchised
restaurants of approximately $2.1 million and $6.3 million, respectively. The
remainder of the loss was due to interest expense on outstanding debt with a
third-party bank and Papa John’s.
|
(3)
|
Free
cash flow is defined as net cash provided by operating activities (from
the consolidated statements of cash flows) excluding the impact of BIBP,
less the purchase of property and equipment. We view free cash flow as an
important measure because it is one 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 performance than the
company’s GAAP measures.
|
* * * *
For more
information about the company, please visit www.papajohns.com.
15
Papa
John's International, Inc. and Subsidiaries
Consolidated
Statements of Income
|
Three Months Ended
|
Years Ended
|
|||||||||||||||
|
December 27, 2009
|
December 28, 2008
|
December 27, 2009
|
December 28, 2008
|
|||||||||||||
|
(In
thousands, except per share amounts)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Domestic:
|
||||||||||||||||
|
Company-owned
restaurant sales
|
$ | 125,124 | $ | 129,923 | $ | 503,818 | $ | 533,255 | ||||||||
|
Variable
interest entities restaurant sales
|
10,485 | 2,035 | 37,735 | 8,328 | ||||||||||||
|
Franchise
royalties
|
15,959 | 15,122 | 61,012 | 59,704 | ||||||||||||
|
Franchise
and development fees
|
69 | 239 | 519 | 1,600 | ||||||||||||
|
Commissary
sales
|
104,452 | 107,896 | 407,437 | 429,068 | ||||||||||||
|
Other
sales
|
13,346 | 14,493 | 54,045 | 61,415 | ||||||||||||
|
International:
|
||||||||||||||||
|
Royalties
and franchise and development fees
|
3,448 | 3,414 | 13,244 | 12,868 | ||||||||||||
|
Restaurant
and commissary sales
|
7,595 | 6,524 | 28,223 | 25,849 | ||||||||||||
|
Total
revenues
|
280,478 | 279,646 | 1,106,033 | 1,132,087 | ||||||||||||
|
Costs
and expenses:
|
||||||||||||||||
|
Domestic
Company-owned restaurant expenses:
|
||||||||||||||||
|
Cost
of sales
|
27,079 | 28,420 | 100,863 | 120,545 | ||||||||||||
|
Salaries
and benefits
|
35,935 | 37,597 | 146,116 | 158,276 | ||||||||||||
|
Advertising
and related costs
|
11,660 | 11,814 | 45,593 | 48,547 | ||||||||||||
|
Occupancy
costs
|
7,876 | 8,446 | 31,685 | 34,973 | ||||||||||||
|
Other
operating expenses
|
17,682 | 17,767 | 69,946 | 72,349 | ||||||||||||
|
Total
domestic Company-owned restaurant expenses
|
100,232 | 104,044 | 394,203 | 434,690 | ||||||||||||
|
Variable
interest entities restaurant expenses
|
8,676 | 1,815 | 29,672 | 7,360 | ||||||||||||
|
Domestic
commissary and other expenses:
|
||||||||||||||||
|
Cost
of sales
|
88,400 | 91,169 | 341,775 | 363,042 | ||||||||||||
|
Salaries
and benefits
|
7,778 | 8,270 | 33,839 | 35,090 | ||||||||||||
|
Other
operating expenses
|
10,455 | 9,660 | 43,595 | 45,732 | ||||||||||||
|
Total
domestic commissary and other expenses
|
106,633 | 109,099 | 419,209 | 443,864 | ||||||||||||
|
Loss
(income) from the franchise cheese-purchasing program, net of minority
interest
|
(1,343 | ) | (1,039 | ) | (18,079 | ) | 6,296 | |||||||||
|
International
operating expenses
|
6,519 | 5,464 | 24,356 | 22,822 | ||||||||||||
|
General
and administrative expenses
|
25,154 | 19,102 | 112,909 | 99,723 | ||||||||||||
|
Other
general expenses
|
5,464 | 11,575 | 15,728 | 19,000 | ||||||||||||
|
Depreciation
and amortization
|
8,490 | 7,846 | 32,756 | 32,846 | ||||||||||||
|
Total
costs and expenses
|
259,825 | 257,906 | 1,010,754 | 1,066,601 | ||||||||||||
|
Operating
income
|
20,653 | 21,740 | 95,279 | 65,486 | ||||||||||||
|
Net
interest
|
(1,220 | ) | (1,704 | ) | (5,085 | ) | (6,688 | ) | ||||||||
|
Income
before income taxes
|
19,433 | 20,036 | 90,194 | 58,798 | ||||||||||||
|
Income
tax expense
|
4,893 | 6,659 | 28,985 | 19,980 | ||||||||||||
|
Net
income, including noncontrolling interests
|
14,540 | 13,377 | 61,209 | 38,818 | ||||||||||||
|
Less:
income attributable to noncontrolling interests
|
(842 | ) | (601 | ) | (3,756 | ) | (2,022 | ) | ||||||||
|
Net
income, net of noncontrolling interests
|
$ | 13,698 | $ | 12,776 | $ | 57,453 | $ | 36,796 | ||||||||
|
Basic
earnings per common share
|
$ | 0.50 | $ | 0.46 | $ | 2.07 | $ | 1.31 | ||||||||
|
Earnings
per common share - assuming dilution
|
$ | 0.49 | $ | 0.46 | $ | 2.06 | $ | 1.30 | ||||||||
|
Basic
weighted average shares outstanding
|
27,603 | 27,639 | 27,738 | 28,124 | ||||||||||||
|
Diluted
weighted average shares outstanding
|
27,679 | 27,639 | 27,909 | 28,264 | ||||||||||||
|
Note:
|
The
statements of income for the years ended December 27, 2009 and December
28, 2008 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
Condensed
Consolidated Balance Sheets
|
December 27,
|
December 28,
|
|||||||
|
2009
|
2008
|
|||||||
|
(Note)
|
(Note)
|
|||||||
|
(In
thousands)
|
||||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 28,219 | $ | 10,987 | ||||
|
Accounts
receivable
|
22,144 | 23,775 | ||||||
|
Inventories
|
15,767 | 16,872 | ||||||
|
Prepaid
expenses
|
9,113 | 9,797 | ||||||
|
Other
current assets
|
3,748 | 5,275 | ||||||
|
Assets
held for sale
|
- | 1,540 | ||||||
|
Deferred
income taxes
|
8,408 | 7,102 | ||||||
|
Total
current assets
|
87,399 | 75,348 | ||||||
|
Investments
|
1,382 | 530 | ||||||
|
Net
property and equipment
|
194,242 | 189,992 | ||||||
|
Notes
receivable
|
8,643 | 7,594 | ||||||
|
Deferred
income taxes
|
6,804 | 17,518 | ||||||
|
Goodwill
|
76,475 | 76,914 | ||||||
|
Other
assets
|
22,150 | 18,572 | ||||||
|
Total
assets
|
$ | 397,095 | $ | 386,468 | ||||
|
Liabilities
and stockholders' equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 28,675 | $ | 29,148 | ||||
|
Income
and other taxes
|
5,854 | 9,685 | ||||||
|
Accrued
expenses
|
54,241 | 54,220 | ||||||
|
Current
portion of debt
|
- | 7,075 | ||||||
|
Total
current liabilities
|
88,770 | 100,128 | ||||||
|
Unearned
franchise and development fees
|
5,668 | 5,916 | ||||||
|
Long-term
debt, net of current portion
|
99,050 | 123,579 | ||||||
|
Other
long-term liabilities
|
18,570 | 18,607 | ||||||
|
Total
liabilities
|
212,058 | 248,230 | ||||||
|
Total
stockholders' equity
|
185,037 | 138,238 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 397,095 | $ | 386,468 | ||||
|
Note:
|
The
balance sheets at December 27, 2009 and December 28, 2008 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
Papa
John's International, Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
|
Years
Ended
|
||||||||
|
(In
thousands)
|
December
27, 2009
|
December
28, 2008
|
||||||
|
Operating
activities
|
||||||||
|
Net
income, net of noncontrolling interests
|
$ | 57,453 | $ | 36,796 | ||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
|
Restaurant
impairment and disposition losses
|
657 | 8,818 | ||||||
|
Provision
for uncollectible accounts and notes receivable
|
2,242 | 5,769 | ||||||
|
Depreciation
and amortization
|
32,756 | 32,846 | ||||||
|
Deferred
income taxes
|
7,469 | (3,608 | ) | |||||
|
Stock-based
compensation expense
|
5,817 | 2,564 | ||||||
|
Excess
tax benefit related to exercise of non-qualified stock
options
|
(1,035 | ) | (771 | ) | ||||
|
Other
|
1,486 | 1,255 | ||||||
|
Changes
in operating assets and liabilities, net of acquisitions:
|
||||||||
|
Accounts
receivable
|
154 | (5,162 | ) | |||||
|
Inventories
|
1,114 | 1,833 | ||||||
|
Prepaid
expenses
|
706 | 914 | ||||||
|
Other
current assets
|
2,009 | 446 | ||||||
|
Other
assets and liabilities
|
(3,813 | ) | (2,913 | ) | ||||
|
Accounts
payable
|
(1,879 | ) | (2,009 | ) | ||||
|
Income
and other taxes
|
(3,831 | ) | (1,181 | ) | ||||
|
Accrued
expenses
|
(144 | ) | (2,166 | ) | ||||
|
Unearned
franchise and development fees
|
(248 | ) | (368 | ) | ||||
|
Net
cash provided by operating activities
|
100,913 | 73,063 | ||||||
|
Investing
activities
|
||||||||
|
Purchase
of property and equipment
|
(33,538 | ) | (29,271 | ) | ||||
|
Purchase
of investments
|
(1,187 | ) | (632 | ) | ||||
|
Proceeds
from sale or maturity of investments
|
335 | 927 | ||||||
|
Loans
issued
|
(11,635 | ) | (1,468 | ) | ||||
|
Loan
repayments
|
8,496 | 2,017 | ||||||
|
Acquisitions
|
(464 | ) | (183 | ) | ||||
|
Proceeds
from divestitures of restaurants
|
830 | 2,145 | ||||||
|
Other
|
756 | 233 | ||||||
|
Net
cash used in investing activities
|
(36,407 | ) | (26,232 | ) | ||||
|
Financing
activities
|
||||||||
|
Net
repayments from line of credit facility
|
(24,500 | ) | (10,500 | ) | ||||
|
Net
repayments from short-term debt - variable interest
entities
|
(7,075 | ) | (1,625 | ) | ||||
|
Excess
tax benefit related to exercise of non-qualified stock
options
|
1,035 | 771 | ||||||
|
Proceeds
from exercise of stock options
|
9,830 | 4,623 | ||||||
|
Acquisition
of Company common stock
|
(28,477 | ) | (37,697 | ) | ||||
|
Noncontrolling
interests, net of contributions and distributions
|
(84 | ) | 217 | |||||
|
Other
|
734 | 82 | ||||||
|
Net
cash used in financing activities
|
(48,537 | ) | (44,129 | ) | ||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
176 | (592 | ) | |||||
|
Change
in cash and cash equivalents
|
16,145 | 2,110 | ||||||
|
Cash
recorded from consolidation of VIEs
|
1,087 | - | ||||||
|
Cash
and cash equivalents at beginning of year
|
10,987 | 8,877 | ||||||
|
Cash
and cash equivalents at end of year
|
$ | 28,219 | $ | 10,987 | ||||
|
Note:
|
The
cash flows at December 27, 2009 and December 28, 2008 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.
|
18
Restaurant
Progression
Papa
John's International, Inc.
|
Fourth Quarter Ended December 27, 2009
|
||||||||||||||||||||
|
Corporate
|
Franchised
|
|||||||||||||||||||
|
Domestic
|
Int'l
|
Domestic
|
Int'l
|
Total
|
||||||||||||||||
|
Papa
John's restaurants
|
||||||||||||||||||||
|
Beginning
of period
|
590 | 23 | 2,212 | 633 | 3,458 | |||||||||||||||
|
Opened
|
- | 3 | 21 | 40 | 64 | |||||||||||||||
|
Closed
|
(2 | ) | - | (40 | ) | (11 | ) | (53 | ) | |||||||||||
|
Acquired
|
- | - | - | - | - | |||||||||||||||
|
Sold
|
- | - | - | - | - | |||||||||||||||
|
End
of Period
|
588 | 26 | 2,193 | 662 | 3,469 | |||||||||||||||
|
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 | |||||||||||||||
19
Restaurant
Progression
Papa
John's International, Inc.
|
Year Ended December 27, 2009
|
||||||||||||||||||||
|
Corporate
|
Franchised
|
|||||||||||||||||||
|
Domestic
|
Int'l
|
Domestic
|
Int'l
|
Total
|
||||||||||||||||
|
Papa
John's restaurants
|
||||||||||||||||||||
|
Beginning
of period
|
592 | 23 | 2,200 | 565 | 3,380 | |||||||||||||||
|
Opened
|
5 | 4 | 79 | 128 | 216 | |||||||||||||||
|
Closed
|
(8 | ) | (1 | ) | (87 | ) | (31 | ) | (127 | ) | ||||||||||
|
Acquired
|
11 | - | 12 | - | 23 | |||||||||||||||
|
Sold
|
(12 | ) | - | (11 | ) | - | (23 | ) | ||||||||||||
|
End
of Period
|
588 | 26 | 2,193 | 662 | 3,469 | |||||||||||||||
|
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 | |||||||||||||||
20