Papa Johns Announces Fourth Quarter and Full Year 2023 Financial Results
Fourth Quarter Highlights
North America comparable sales(a) were up 2% compared with the fourth quarter of 2022 as transaction and ticket growth delivered 2% comparable sales at bothDomestic Company -owned restaurants andNorth America franchised restaurants; International comparable sales(a) were down 6%.- 89 net unit openings driven by 36 North America and 53 International net unit openings.
- Global system-wide restaurant sales were
$1.34 billion , an 11%(b) increase from the prior year fourth quarter. Excluding the 53rd week in 2023, global system-wide sales were up approximately 2%(b). - Total revenues of
$571 million were up$45 million , or 9%, compared with a year ago. Excluding the 53rd week, Total revenues were up approximately 1%. - Diluted earnings per common share of
$0.79 , up from$0.66 for the fourth quarter of 2022; Adjusted diluted earnings per common share(c) was$0.91 , up from$0.71 a year ago.
Full Year Highlights
North America comparable sales(a) were up 1% from a year ago driven by a 3% increase inDomestic Company -owned restaurants; International comparable sales(a) were down 3%.- 208 net unit openings for the full year 2023 with 57 net unit openings in
North America and 151 net unit openings in International markets. - Global system-wide restaurant sales were
$5.04 billion , a 5%(b) increase over the prior year. Excluding the 53rd week in 2023, global system-wide sales were up 3%(b). - Total revenues of
$2.14 billion were up$34 million , or 2%, from 2022. Excluding the 53rd week in 2023, Total revenues were down less than 1% driven by lower revenues in ourNorth America commissary segment due to commodity price declines. - Diluted earnings per common share of
$2.48 compared with$1.89 for 2022; adjusted diluted earnings per common share(c) was$2.71 compared with$2.94 a year ago.
“Papa Johns finished 2023 with a solid fourth quarter and achieved record system-wide sales for the year, marking this as our fourth consecutive year of positive
Lynch continued, “We are also making progress on our International transformation initiatives, which include optimizing our
“Looking ahead, we are excited about the long-term future of
______________________________________________________
(a)
(b) Excludes the impact of foreign currency.
(c) Represents Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures.
Financial Highlights
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
Increase (Decrease) |
|
|
|
|
|
Increase (Decrease) |
|||||||
Total revenues |
|
$ |
571,322 |
|
$ |
526,234 |
|
$ |
45,088 |
|
$ |
2,135,713 |
|
$ |
2,102,103 |
|
$ |
33,610 |
|
Operating income |
|
$ |
42,566 |
|
$ |
36,230 |
|
$ |
6,336 |
|
$ |
147,142 |
|
$ |
109,030 |
|
$ |
38,112 |
|
Adjusted operating income (a) |
|
$ |
47,354 |
|
$ |
38,226 |
|
$ |
9,128 |
|
$ |
157,025 |
|
$ |
157,462 |
|
$ |
(437 |
) |
Net income attributable to the Company |
|
$ |
26,093 |
|
$ |
23,514 |
|
$ |
2,579 |
|
$ |
82,098 |
|
$ |
67,772 |
|
$ |
14,326 |
|
Diluted earnings per common share |
|
$ |
0.79 |
|
$ |
0.66 |
|
$ |
0.13 |
|
$ |
2.48 |
|
$ |
1.89 |
|
$ |
0.59 |
|
Adjusted diluted earnings per common share (a) |
|
$ |
0.91 |
|
$ |
0.71 |
|
$ |
0.20 |
|
$ |
2.71 |
|
$ |
2.94 |
|
$ |
(0.23 |
) |
Results for the fourth quarter and fiscal year 2023 are not directly comparable with the fourth quarter and fiscal year 2022, as year-over-year comparisons are affected by an additional week of operations in the fourth quarter of 2023. For comparability purposes we will describe the estimated impact of the 53rd week on 2023 in the discussion below.
Additionally, the comparison of results between periods is impacted by the International franchisee acquisitions that occurred in the second and third quarters of 2023, which resulted in 118 UK restaurants moving from franchised to Company-owned, as well as the second quarter 2022 Domestic refranchising, which resulted in 90 US restaurants moving from Company-owned to franchised.
Quarterly Results
Total revenues of
For the fourth quarter of 2023, global system-wide restaurant sales were
Operating income of
Adjusted operating income(a) was
Diluted earnings per common share was
Full Year Results
Total revenues of
For 2023, global system-wide restaurant sales were
Operating income of
Adjusted operating income(a) of
Diluted earnings per common share was
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
____________________________________________________
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measures.
Global Restaurant Sales Information
Global restaurant and comparable sales information for the fourth quarter and year ended
|
|
Three Months Ended |
|
Year ended |
||||||||
Amounts below exclude the impact of foreign currency |
|
|
|
|
|
|
|
|
||||
Comparable sales growth (decline) (a): |
|
|
|
|
|
|
|
|
||||
|
|
2.2 |
% |
|
0.8 |
% |
|
3.4 |
% |
|
(1.0 |
)% |
|
|
1.7 |
% |
|
1.1 |
% |
|
0.1 |
% |
|
1.2 |
% |
|
|
1.8 |
% |
|
1.1 |
% |
|
0.8 |
% |
|
0.7 |
% |
International restaurants |
|
(5.5 |
)% |
|
(3.4 |
)% |
|
(3.1 |
)% |
|
(5.3 |
)% |
Total comparable sales growth (decline) |
|
0.1 |
% |
|
— |
% |
|
(0.1 |
)% |
|
(0.8 |
)% |
System-wide restaurant sales growth (b): |
|
|
|
|
|
|
|
|
||||
|
|
12.4 |
% |
|
2.9 |
% |
|
6.7 |
% |
|
1.3 |
% |
|
|
10.9 |
% |
|
2.5 |
% |
|
3.6 |
% |
|
2.5 |
% |
|
|
11.2 |
% |
|
2.6 |
% |
|
4.1 |
% |
|
2.3 |
% |
International restaurants (c) |
|
10.5 |
% |
|
3.5 |
% |
|
7.7 |
% |
|
4.8 |
% |
Total global system-wide restaurant sales growth (c) |
|
11.0 |
% |
|
2.8 |
% |
|
5.0 |
% |
|
2.9 |
% |
______________________________________________________ |
||||||||||||
(a) Comparable sales growth (decline) in the fourth quarter of 2023 includes a 13-week comparison to the fourth quarter of 2022 and a 52 week comparison for fiscal year 2023 to fiscal year 2022. |
||||||||||||
(b) System-wide restaurant sales growth includes 14 weeks in the fourth quarter of 2023 and 53 weeks in fiscal year 2023. |
||||||||||||
(c) The twelve months ended |
Global Restaurant Unit Data
As of
Fourth Quarter |
|
Domestic Company Owned |
|
|
|
|
|
International Company Owned |
|
International Franchised |
|
|
|
System-wide |
||||||
|
|
526 |
|
2,871 |
|
|
3,397 |
|
|
118 |
|
|
2,302 |
|
|
2,420 |
|
|
5,817 |
|
Opened |
|
5 |
|
43 |
|
|
48 |
|
|
— |
|
|
81 |
|
|
81 |
|
|
129 |
|
Closed |
|
— |
|
(12 |
) |
|
(12 |
) |
|
— |
|
|
(28 |
) |
|
(28 |
) |
|
(40 |
) |
Refranchised |
|
— |
|
— |
|
|
— |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
— |
|
|
|
531 |
|
2,902 |
|
|
3,433 |
|
|
117 |
|
|
2,356 |
|
|
2,473 |
|
|
5,906 |
|
Net unit growth/(decline) |
|
5 |
|
31 |
|
|
36 |
|
|
(1 |
) |
|
54 |
|
|
53 |
|
|
89 |
|
Full year |
|
Domestic Company Owned |
|
|
|
|
|
International Company Owned |
|
International Franchised |
|
|
|
System-wide |
|||||||
|
|
522 |
|
|
2,854 |
|
|
3,376 |
|
|
— |
|
|
2,322 |
|
|
2,322 |
|
|
5,698 |
|
Opened |
|
5 |
|
|
87 |
|
|
92 |
|
|
— |
|
|
234 |
|
|
234 |
|
|
326 |
|
Closed |
|
(2 |
) |
|
(33 |
) |
|
(35 |
) |
|
— |
|
|
(83 |
) |
|
(83 |
) |
|
(118 |
) |
Sold |
|
— |
|
|
(10 |
) |
|
(10 |
) |
|
— |
|
|
(118 |
) |
|
(118 |
) |
|
(128 |
) |
Acquired |
|
10 |
|
|
— |
|
|
10 |
|
|
118 |
|
|
— |
|
|
118 |
|
|
128 |
|
Refranchised |
|
(4 |
) |
|
4 |
|
|
— |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
— |
|
|
|
531 |
|
2,902 |
|
|
3,433 |
|
|
117 |
|
|
2,356 |
|
|
2,473 |
|
|
5,906 |
|
|
Net unit growth/(decline) |
|
9 |
|
|
48 |
|
|
57 |
|
|
117 |
|
|
34 |
|
|
151 |
|
|
208 |
|
(a) 2022 full year store activity has been adjusted from previous presentations, as eight International franchised locations were reclassified as closed locations following a review of temporary restaurant closures. |
Free Cash Flow
Free cash flow, a non-GAAP financial measure which the Company defines as net cash provided by operating activities, less purchases of property and equipment, was
|
|
Year Ended |
||||||
(in thousands) |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
193,055 |
|
|
$ |
117,808 |
|
Purchases of property and equipment |
|
|
(76,620 |
) |
|
|
(78,391 |
) |
Free cash flow |
|
$ |
116,435 |
|
|
$ |
39,417 |
|
We view free cash flow as an important financial 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.
Cash Dividend and Share Repurchases
The Company paid cash dividends of
Conference Call
About
Papa John’s
Forward-Looking Statements
Certain matters discussed in this press release and other Company communications that are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as “expect,” “intend,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “outlook”, “plan,” “project,” or similar words identify forward-looking statements that we intend to be included within the safe harbor protections provided by the federal securities laws. Such forward-looking statements include or may relate to projections or guidance concerning business performance, revenue, earnings, cash flow, earnings per share, share repurchases, the current economic environment, commodity and labor costs, currency fluctuations, profit margins, supply chain operating margin, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, restaurant acquisitions, store closures, labor shortages, labor cost increases, inflation, royalty relief, franchisee support and incentives, the effectiveness of our menu innovations and other business initiatives, investments in product and digital innovation, marketing efforts and investments, liquidity, compliance with debt covenants, impairments, strategic decisions and actions, changes to our national marketing fund, changes to our commissary model, dividends, effective tax rates, regulatory changes and impacts, investments in and repositioning of the
Our forward-looking statements are based on our assumptions which are based on currently available information. Actual outcomes and results may differ materially from those matters expressed or implied in our forward-looking statements as a result of various factors, including but not limited to risks related to: deteriorating economic conditions in the
For more information about the company, please visit www.papajohns.com.
Supplemental Information and Financial Statements
Definitions
“Comparable sales” represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales excludes sales of restaurants that were not open during both the current and prior fiscal periods and franchisees for which we suspended corporate support. “Global system-wide restaurant sales” represents total restaurant sales for all Company-owned and franchised restaurants open during the comparable periods, and “Global system-wide restaurant sales growth (decline)” represents the change in total system restaurant sales year-over-year. Global system-wide restaurant sales and global system-wide sales growth (decline) exclude franchisees for which we suspended corporate support.
“Equivalent units” represents the number of restaurants open at the beginning of a given period, adjusted for restaurants opened, closed, acquired or sold during the period on a weighted average basis.
We believe
Non-GAAP Financial Measures
In addition to the results provided in accordance with
|
|
Three months ended |
|
Year Ended |
||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
42,566 |
|
|
$ |
36,230 |
|
|
$ |
147,142 |
|
|
$ |
109,030 |
|
|
|
|
1,742 |
|
|
|
1,996 |
|
|
|
4,243 |
|
|
|
5,223 |
|
International restructuring costs (b) |
|
|
2,178 |
|
|
|
— |
|
|
|
2,178 |
|
|
|
— |
|
|
|
|
868 |
|
|
|
— |
|
|
|
868 |
|
|
|
— |
|
Refranchising and impairment losses (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,702 |
|
Legal settlements (e) |
|
|
— |
|
|
|
— |
|
|
|
577 |
|
|
|
15,000 |
|
Other costs (f) |
|
|
— |
|
|
|
— |
|
|
|
2,017 |
|
|
|
1,507 |
|
Adjusted operating income |
|
|
47,354 |
|
|
|
38,226 |
|
|
|
157,025 |
|
|
|
157,462 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
26,093 |
|
|
$ |
23,373 |
|
|
$ |
82,098 |
|
|
$ |
67,362 |
|
|
|
|
1,742 |
|
|
|
1,996 |
|
|
|
4,243 |
|
|
|
5,223 |
|
International restructuring costs (b) |
|
|
2,178 |
|
|
|
— |
|
|
|
2,178 |
|
|
|
— |
|
|
|
|
868 |
|
|
|
— |
|
|
|
868 |
|
|
|
— |
|
Refranchising and impairment losses (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,702 |
|
Legal settlements (e) |
|
|
— |
|
|
|
— |
|
|
|
577 |
|
|
|
15,000 |
|
Other costs (f) |
|
|
— |
|
|
|
— |
|
|
|
2,017 |
|
|
|
1,507 |
|
Tax effect of adjustments (g) |
|
|
(1,082 |
) |
|
|
(449 |
) |
|
|
(2,234 |
) |
|
|
(10,897 |
) |
Adjusted net income attributable to common shareholders (h) |
|
|
29,799 |
|
|
|
24,920 |
|
|
|
89,747 |
|
|
|
104,897 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
|
$ |
0.79 |
|
|
$ |
0.66 |
|
|
$ |
2.48 |
|
|
$ |
1.89 |
|
|
|
|
0.06 |
|
|
|
0.07 |
|
|
|
0.13 |
|
|
|
0.15 |
|
International restructuring costs (b) |
|
|
0.07 |
|
|
|
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Refranchising and impairment losses (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.75 |
|
Legal settlements (e) |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.42 |
|
Other costs (f) |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.04 |
|
Tax effect of adjustments (g) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.07 |
) |
|
|
(0.31 |
) |
Adjusted diluted earnings per common share (h) |
|
|
0.91 |
|
|
|
0.71 |
|
|
|
2.71 |
|
|
|
2.94 |
|
See footnotes on following page |
Footnotes to Non-GAAP Financial Measures
(a) |
Represents costs associated with repositioning the |
||
(b) |
In the fourth quarter of 2023, the Company initiated an International Restructuring plan. During the period, costs incurred related to the restructuring include |
||
(c) |
Represents a one-time non-cash charge of |
||
(d) |
Refranchising and impairment losses consisted of the following pre-tax adjustments: | ||
(1) |
A one-time, non-cash charge of |
||
|
(2) |
A one-time non-cash charge of |
|
|
(3) |
An impairment charge of |
|
(e) |
Represents accruals for certain legal settlements recorded in General and administrative expenses. | ||
(f) |
Represents severance and related costs associated with the transition of certain executives incurred during the twelve month periods ended |
||
(g) |
The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rate of 22.6% for the three month and twelve months ended |
||
(h) |
Amounts shown exclude the impact of allocation of undistributed earnings to participating securities. |
Papa John’s Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except per share amounts) |
|
|
|
|
||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
40,587 |
|
|
$ |
47,373 |
|
Accounts receivable (less allowance for credit losses of |
|
|
104,244 |
|
|
|
102,533 |
|
Notes receivable, current portion |
|
|
5,199 |
|
|
|
6,848 |
|
Income tax receivable |
|
|
2,577 |
|
|
|
8,780 |
|
Inventories |
|
|
36,126 |
|
|
|
41,382 |
|
Prepaid expenses and other current assets |
|
|
42,285 |
|
|
|
44,123 |
|
Total current assets |
|
|
231,018 |
|
|
|
251,039 |
|
Property and equipment, net |
|
|
282,812 |
|
|
|
249,793 |
|
Finance lease right-of-use assets, net |
|
|
31,740 |
|
|
|
24,941 |
|
Operating lease right-of-use assets |
|
|
164,158 |
|
|
|
172,425 |
|
Notes receivable, less current portion (less allowance for credit losses of |
|
|
12,346 |
|
|
|
21,248 |
|
|
|
|
76,206 |
|
|
|
70,616 |
|
Other assets |
|
|
76,725 |
|
|
|
74,165 |
|
Total assets |
|
$ |
875,005 |
|
|
$ |
864,227 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
74,949 |
|
|
$ |
62,316 |
|
Income and other taxes payable |
|
|
17,948 |
|
|
|
8,766 |
|
Accrued expenses and other current liabilities |
|
|
158,167 |
|
|
|
142,535 |
|
Current deferred revenue |
|
|
20,427 |
|
|
|
21,272 |
|
Current finance lease liabilities |
|
|
9,029 |
|
|
|
6,850 |
|
Current operating lease liabilities |
|
|
24,076 |
|
|
|
23,418 |
|
Total current liabilities |
|
|
304,596 |
|
|
|
265,157 |
|
Deferred revenue |
|
|
20,366 |
|
|
|
23,204 |
|
Long-term finance lease liabilities |
|
|
24,144 |
|
|
|
19,022 |
|
Long-term operating lease liabilities |
|
|
151,050 |
|
|
|
160,905 |
|
Long-term debt, net |
|
|
757,422 |
|
|
|
597,069 |
|
Other long-term liabilities |
|
|
60,192 |
|
|
|
68,317 |
|
Total liabilities |
|
|
1,317,770 |
|
|
|
1,133,674 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
851 |
|
|
|
1,217 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
492 |
|
|
|
491 |
|
Additional paid-in capital |
|
|
452,290 |
|
|
|
449,829 |
|
Accumulated other comprehensive loss |
|
|
(7,803 |
) |
|
|
(10,135 |
) |
Retained earnings |
|
|
219,027 |
|
|
|
195,856 |
|
|
|
|
(1,123,098 |
) |
|
|
(922,434 |
) |
Total stockholders’ deficit |
|
|
(459,092 |
) |
|
|
(286,393 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,476 |
|
|
|
15,729 |
|
Total Stockholders’ deficit |
|
|
(443,616 |
) |
|
|
(270,664 |
) |
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
875,005 |
|
|
$ |
864,227 |
|
Papa John’s Condensed Consolidated Statements of Operations |
||||||||||||||||
|
|
Three Months Ended |
|
Year ended |
||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
193,521 |
|
|
$ |
172,163 |
|
|
$ |
726,362 |
|
|
$ |
708,389 |
|
|
|
|
38,726 |
|
|
|
34,502 |
|
|
|
144,550 |
|
|
|
137,399 |
|
|
|
|
227,928 |
|
|
|
224,457 |
|
|
|
852,361 |
|
|
|
869,634 |
|
International revenues |
|
|
48,189 |
|
|
|
32,593 |
|
|
|
157,187 |
|
|
|
129,903 |
|
Other revenues |
|
|
62,958 |
|
|
|
62,519 |
|
|
|
255,253 |
|
|
|
256,778 |
|
Total revenues |
|
|
571,322 |
|
|
|
526,234 |
|
|
|
2,135,713 |
|
|
|
2,102,103 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
|
|
|
150,967 |
|
|
|
143,321 |
|
|
|
587,889 |
|
|
|
585,307 |
|
|
|
|
211,120 |
|
|
|
206,757 |
|
|
|
787,554 |
|
|
|
811,446 |
|
International expenses |
|
|
35,656 |
|
|
|
18,655 |
|
|
|
103,198 |
|
|
|
76,001 |
|
Other expenses |
|
|
57,822 |
|
|
|
58,358 |
|
|
|
235,483 |
|
|
|
238,810 |
|
General and administrative expenses |
|
|
55,916 |
|
|
|
48,893 |
|
|
|
210,357 |
|
|
|
217,412 |
|
Depreciation and amortization |
|
|
17,275 |
|
|
|
14,020 |
|
|
|
64,090 |
|
|
|
52,032 |
|
Total costs and expenses |
|
|
528,756 |
|
|
|
490,004 |
|
|
|
1,988,571 |
|
|
|
1,981,008 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,065 |
) |
Operating income |
|
|
42,566 |
|
|
|
36,230 |
|
|
|
147,142 |
|
|
|
109,030 |
|
Net interest expense |
|
|
(11,795 |
) |
|
|
(7,294 |
) |
|
|
(43,469 |
) |
|
|
(25,261 |
) |
Income before income taxes |
|
|
30,771 |
|
|
|
28,936 |
|
|
|
103,673 |
|
|
|
83,769 |
|
Income tax expense |
|
|
4,328 |
|
|
|
5,208 |
|
|
|
20,874 |
|
|
|
14,420 |
|
Net income before attribution to noncontrolling interests |
|
|
26,443 |
|
|
|
23,728 |
|
|
|
82,799 |
|
|
|
69,349 |
|
Net income attributable to noncontrolling interests |
|
|
(350 |
) |
|
|
(214 |
) |
|
|
(701 |
) |
|
|
(1,577 |
) |
Net income attributable to the Company |
|
$ |
26,093 |
|
|
$ |
23,514 |
|
|
$ |
82,098 |
|
|
$ |
67,772 |
|
|
|
|
|
|
|
|
|
|
||||||||
Calculation of net income for earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company |
|
$ |
26,093 |
|
|
$ |
23,514 |
|
|
$ |
82,098 |
|
|
$ |
67,772 |
|
Dividends paid to participating securities |
|
|
— |
|
|
|
(78 |
) |
|
|
— |
|
|
|
(306 |
) |
Net income attributable to participating securities |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(104 |
) |
Net income attributable to common shareholders |
|
$ |
26,093 |
|
|
$ |
23,373 |
|
|
$ |
82,098 |
|
|
$ |
67,362 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
0.80 |
|
|
$ |
0.66 |
|
|
$ |
2.49 |
|
|
$ |
1.90 |
|
Diluted earnings per common share |
|
$ |
0.79 |
|
|
$ |
0.66 |
|
|
$ |
2.48 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
32,594 |
|
|
|
35,167 |
|
|
|
32,931 |
|
|
|
35,497 |
|
Diluted weighted average common shares outstanding |
|
|
32,829 |
|
|
|
35,336 |
|
|
|
33,159 |
|
|
|
35,717 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
1.76 |
|
|
$ |
1.54 |
|
Papa John’s Condensed Consolidated Statements of Cash Flows |
||||||||
|
|
Year ended |
||||||
(In thousands) |
|
|
|
|
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
82,799 |
|
|
$ |
69,349 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision (benefit) for allowance for credit losses on accounts and notes receivable |
|
|
5,393 |
|
|
|
20,539 |
|
Depreciation and amortization |
|
|
64,090 |
|
|
|
52,032 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
12,065 |
|
Deferred income taxes |
|
|
(5,991 |
) |
|
|
2,798 |
|
Stock-based compensation expense |
|
|
17,924 |
|
|
|
18,388 |
|
Other |
|
|
66 |
|
|
|
1,056 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
(8,049 |
) |
|
|
(29,167 |
) |
Income tax receivable |
|
|
6,212 |
|
|
|
586 |
|
Inventories |
|
|
5,441 |
|
|
|
(7,496 |
) |
Prepaid expenses and other current assets |
|
|
817 |
|
|
|
5,587 |
|
Other assets and liabilities |
|
|
(11,803 |
) |
|
|
(13,458 |
) |
Accounts payable |
|
|
23,371 |
|
|
|
(8,350 |
) |
Income and other taxes payable |
|
|
9,087 |
|
|
|
(10,710 |
) |
Accrued expenses and other current liabilities |
|
|
7,402 |
|
|
|
4,846 |
|
Deferred revenue |
|
|
(3,704 |
) |
|
|
(257 |
) |
Net cash provided by operating activities |
|
|
193,055 |
|
|
|
117,808 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(76,620 |
) |
|
|
(78,391 |
) |
Notes issued |
|
|
(4,338 |
) |
|
|
(9,296 |
) |
Repayments of notes issued |
|
|
4,655 |
|
|
|
13,045 |
|
Acquisitions, net of cash acquired |
|
|
(5,613 |
) |
|
|
(1,219 |
) |
Proceeds from refranchising, net of cash transferred |
|
|
— |
|
|
|
13,588 |
|
Proceeds from the sale of property and equipment |
|
|
3,457 |
|
|
|
— |
|
Other |
|
|
3,336 |
|
|
|
(520 |
) |
Net cash used in investing activities |
|
|
(75,123 |
) |
|
|
(62,793 |
) |
Financing activities |
|
|
|
|
||||
Net proceeds of revolving credit facilities |
|
|
159,000 |
|
|
|
115,000 |
|
Proceeds from exercise of stock options |
|
|
2,252 |
|
|
|
4,036 |
|
Acquisition of Company common stock |
|
|
(210,348 |
) |
|
|
(125,000 |
) |
Dividends paid to common stockholders |
|
|
(58,451 |
) |
|
|
(54,767 |
) |
Tax payments for equity award issuances |
|
|
(6,416 |
) |
|
|
(9,546 |
) |
Distributions to noncontrolling interests |
|
|
(1,320 |
) |
|
|
(1,211 |
) |
Principal payments on finance leases |
|
|
(8,821 |
) |
|
|
(5,416 |
) |
Other |
|
|
28 |
|
|
|
664 |
|
Net cash used in financing activities |
|
|
(124,076 |
) |
|
|
(76,240 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(642 |
) |
|
|
(2,012 |
) |
Change in cash and cash equivalents |
|
|
(6,786 |
) |
|
|
(23,237 |
) |
Cash and cash equivalents at beginning of period |
|
|
47,373 |
|
|
|
70,610 |
|
Cash and cash equivalents at end of period |
|
$ |
40,587 |
|
|
$ |
47,373 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227983686/en/
investor_relations@papajohns.com
Source: Papa John’s