Papa John’s Announces Third Quarter 2020 Financial Results and New $75 Million Share Repurchase Program
Highlights
- Company revenues increased 17.1% compared to third quarter of 2019
- Comparable sales increased 23.8% in
North America and 20.7% Internationally in the third quarter - Earnings per diluted share increased to
$0.35 compared to third quarter 2019 loss per diluted share of ($0.10 ) - Cash flow from operations of
$168.5 million and free cash flow of$134.0 million for the first nine months of 2020 - Previously announced temporary franchise support program ended in the third quarter, concluding a
$55 million investment in the system over the past four quarters - New
$75 million share repurchase program authorized
“Thanks to our focus on our strategic priorities, our commitment to an innovation mindset, and our dedication to supporting our team members and franchisees, Papa John’s delivered another quarter of outstanding results,” said President & CEO
Global restaurant and comparable sales information for the three and nine months ended
Three Months Ended |
|
Nine Months Ended |
||||||
|
|
|
|
|
|
|
||
Global restaurant sales growth / (decline) (a) |
21.6% |
2.3% |
14.9% |
(2.5%) |
||||
Global restaurant sales growth / (decline), excluding the impact of foreign currency (a) |
22.1% |
3.3% |
16.0% |
(1.2%) |
||||
Comparable sales growth / (decline) (b) | ||||||||
Domestic company-owned restaurants |
18.2% |
2.2% |
15.6% |
(4.8%) |
||||
25.6% |
0.6% |
20.0% |
(3.7%) |
|||||
23.8% |
1.0% |
19.0% |
(4.0%) |
|||||
System-wide international restaurants (c) |
20.7% |
1.6% |
9.4% |
0.6% |
(a) |
Includes both company-owned and franchised restaurant sales. |
|
(b) |
Represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales results for restaurants operating outside of |
|
(c) |
Includes the impact of temporarily closed stores. Excluding those stores, comparable sales growth for system-wide international restaurants would have been approximately 22.8% and 13.4% for the three and nine months ended |
Financial Highlights
Three Months Ended |
||||||||||
In thousands, except per share amounts |
|
|
|
|
Increase |
|||||
Total revenue |
$ |
472,941 |
$ |
403,706 |
|
$ |
69,235 |
|||
Income before income taxes |
|
20,913 |
|
678 |
|
|
20,235 |
|||
Net income |
|
15,708 |
|
385 |
|
|
15,323 |
|||
Diluted earnings (loss) per share |
|
0.35 |
|
(0.10 |
) |
|
0.45 |
|||
Adjusted diluted earnings (loss) per share (a) |
|
0.35 |
|
(0.07 |
) |
|
0.42 |
(a) |
Adjusted diluted earnings (loss) per share is a Non-GAAP measure we used in 2019 which excludes “Special items,” which impact comparability. The reconciliation of GAAP to non-GAAP financial results is included in “Reconciliation of Non-GAAP Financial Measures” below. |
Revenues
Consolidated revenues of
Operating Results and Cash Flow
Consolidated income before income taxes of
Diluted earnings per common share was
The company’s cash flow from operating activities for the nine months ended
The company paid common and preferred stock dividends of
Segment Results
Three Months Ended |
||||||||||||||||||||
Reported |
|
Reported |
|
Special |
|
Adjusted |
|
Adjusted |
||||||||||||
|
|
|
|
items |
|
|
|
Increase |
||||||||||||
(In thousands) |
2020 |
|
2019 |
|
in 2019 |
|
2019 |
|
(Decrease) |
|||||||||||
$ |
8,439 |
|
$ |
9,162 |
|
$ |
(1,726 |
) |
$ |
7,436 |
|
$ |
1,003 |
|
||||||
|
8,069 |
|
|
6,790 |
|
|
- |
|
|
6,790 |
|
|
1,279 |
|
||||||
|
23,353 |
|
|
14,092 |
|
|
- |
|
|
14,092 |
|
|
9,261 |
|
||||||
International |
|
8,123 |
|
|
4,195 |
|
|
- |
|
|
4,195 |
|
|
3,928 |
|
|||||
All others |
|
3,181 |
|
|
(866 |
) |
|
- |
|
|
(866 |
) |
|
4,047 |
|
|||||
Unallocated corporate expenses |
|
(30,543 |
) |
|
(32,329 |
) |
|
2,844 |
|
|
(29,485 |
) |
|
(1,058 |
) |
|||||
Elimination of intersegment (profits) losses |
|
291 |
|
|
(366 |
) |
|
- |
|
|
(366 |
) |
|
657 |
|
|||||
Adjusted income before income taxes |
$ |
20,913 |
|
$ |
678 |
|
$ |
1,118 |
|
$ |
1,796 |
|
$ |
19,117 |
|
Consolidated income before income taxes of
Domestic Company -owned restaurants increased$1.0 million to$8.4 million primarily due to higher profits from comparable sales of 18.2%, partially offset by higher labor, bonuses and commodities. Additionally, the prior period benefited from the expiration of customer rewards associated with our Papa Rewards loyalty program ($5.1 million unfavorable for the third quarter of 2020).North America commissaries increased$1.3 million to$8.1 million primarily due to higher profits from higher volumes, partially offset by higher bonuses.North America franchising increased$9.3 million to$23.4 million primarily due to higher comparable sales of 25.6% and a higher effective royalty rate due to lower temporary royalty relief which was part of our financial assistance program (see “Temporary Franchise Support”).- International increased
$3.9 million to$8.1 million primarily due to higher profits from comparable sales increases of 20.7% and higher PJUK commissary income attributable to increased units and higher comparable sales. - All others, which primarily includes our online and mobile ordering business, our wholly owned print and promotions subsidiary and our
North America marketing funds, increased$4.0 million primarily due to higher online revenues. - Unallocated corporate expenses increased approximately
$1.1 million primarily due to higher marketing fund investments as discussed in “Temporary Franchise Support” and higher management incentive costs, partially offset by reduced travel as a result of COVID-19 and lower professional and consulting fees.
Year-to-Date Results
Consolidated revenues increased 11.8% to
For the nine months ended
See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Quarterly Report on Form 10-Q filed with the
Global Restaurant Unit Data
As of
Domestic |
|
Franchised |
|
Total North |
|
International |
|
System-wide |
|||||||
Third Quarter | |||||||||||||||
Beginning - |
598 |
|
2,686 |
|
3,284 |
|
2,063 |
|
5,347 |
|
|||||
Opened |
- |
|
14 |
|
14 |
|
40 |
|
54 |
|
|||||
Closed |
(1 |
) |
(11 |
) |
(12 |
) |
(29 |
) |
(41 |
) |
|||||
Ending - |
597 |
|
2,689 |
|
3,286 |
|
2,074 |
|
5,360 |
|
|||||
Year-to-date | |||||||||||||||
Beginning - |
598 |
|
2,690 |
|
3,288 |
|
2,107 |
|
5,395 |
|
|||||
Opened |
1 |
|
38 |
|
39 |
|
83 |
|
122 |
|
|||||
Closed |
(2 |
) |
(39 |
) |
(41 |
) |
(116 |
) |
(157 |
) |
|||||
Ending - |
597 |
|
2,689 |
|
3,286 |
|
2,074 |
|
5,360 |
|
|||||
Net unit decline |
(1 |
) |
(1 |
) |
(2 |
) |
(33 |
) |
(35 |
) |
|||||
% decrease |
(0.2 |
%) |
(0.0 |
%) |
(0.1 |
%) |
(1.6 |
%) |
(0.6 |
%) |
(1) |
Temporary closures as a result of the COVID-19 outbreak are not reflected as “closed” in the restaurant progression above. Of the company’s 2,074 international franchised stores, approximately 90 stores were temporarily closed as of |
Our development pipeline as of
New
On
Strategic Corporate Reorganization for Long-term Growth
On
The new
Conference Call and Website Information
A conference call is scheduled for
Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases,
Forward-Looking Statements
Certain matters discussed in this press release and other company communications 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,” “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, the financial impact of the temporary business opportunities, disruptions and temporary changes in demand we are experiencing related to the current outbreak of the novel coronavirus disease (COVID-19), including our cash on hand and access to our credit facilities, commodity costs, currency fluctuations, profit margins, unit growth, unit level performance, capital expenditures, restaurant and franchise development, the duration of changes in consumer behavior caused by the pandemic, the duration and number of temporary store closures, our plans to open our new headquarters in
For more information about the company, please visit www.papajohns.com.
Supplemental Information and Financial Statements
Definition
Comparable sales: We believe
Reconciliation of Non-GAAP Financial Measures
Effective as of the first quarter of 2020, the company modified its presentation of adjusted (non-GAAP) financial results to no longer present certain financial assistance provided to the
The table below reconciles our GAAP financial results to our adjusted financial results, which are non-GAAP measures (collectively defined as “Special items”). We present these non-GAAP measures because we believe the Special items in 2019 impact comparability to our 2020 results.
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
||||||||
(In thousands, except per share amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||
GAAP income before income taxes |
$ |
20,913 |
$ |
678 |
|
$ |
59,325 |
$ |
9,870 |
|
||||
Special charges: | ||||||||||||||
Legal and advisory fees (1) |
|
- |
|
459 |
|
|
- |
|
5,922 |
|
||||
Mark-to-market adjustment on option valuation (2) |
|
- |
|
- |
|
|
- |
|
5,914 |
|
||||
Other costs (3) |
|
- |
|
2,385 |
|
|
- |
|
2,385 |
|
||||
Refranchising gains |
|
- |
|
(1,726 |
) |
|
- |
|
(1,889 |
) |
||||
Adjusted income before income taxes |
$ |
20,913 |
$ |
1,796 |
|
$ |
59,325 |
$ |
22,202 |
|
||||
GAAP net income (loss) attributable to common shareholders |
$ |
11,457 |
$ |
(3,088 |
) |
$ |
32,410 |
$ |
(2,021 |
) |
||||
Special charges: | ||||||||||||||
Legal and advisory fees (1) |
|
- |
|
459 |
|
|
- |
|
5,922 |
|
||||
Mark-to-market adjustment on option valuation (2) |
|
- |
|
- |
|
|
- |
|
5,914 |
|
||||
Other costs (3) |
|
- |
|
2,385 |
|
|
- |
|
2,385 |
|
||||
Refranchising gains |
|
- |
|
(1,726 |
) |
|
- |
|
(1,889 |
) |
||||
Tax effect of Non-GAAP items (4) |
|
- |
|
(237 |
) |
|
- |
|
(1,434 |
) |
||||
Adjusted net income (loss) attributable to common shareholders |
$ |
11,457 |
$ |
(2,207 |
) |
$ |
32,410 |
$ |
8,877 |
|
||||
GAAP diluted earnings (loss) per share |
$ |
0.35 |
$ |
(0.10 |
) |
$ |
0.99 |
$ |
(0.06 |
) |
||||
Special charges: | ||||||||||||||
Legal and advisory fees (1) |
|
- |
|
0.01 |
|
|
- |
|
0.17 |
|
||||
Mark-to-market adjustment on option valuation (2) |
|
- |
|
- |
|
|
- |
|
0.19 |
|
||||
Other costs (3) |
|
- |
|
0.08 |
|
|
- |
|
0.08 |
|
||||
Refranchising gains |
|
- |
|
(0.05 |
) |
|
- |
|
(0.05 |
) |
||||
Tax effect of Non-GAAP items (4) |
|
- |
|
(0.01 |
) |
|
- |
|
(0.05 |
) |
||||
Adjusted diluted earnings (loss) per share |
$ |
0.35 |
$ |
(0.07 |
) |
$ |
0.99 |
$ |
0.28 |
|
(1) |
Represents advisory and legal costs incurred in 2019 primarily associated with the review of a wide range of strategic opportunities that culminated in the strategic investment in the company by affiliates of |
|
(2) |
Represents a one-time mark-to-market adjustment of |
|
(3) |
Includes severance costs for our former CEO and costs related to the termination of a license agreement for intellectual property no longer being utilized. |
|
(4) |
The tax effect for Legal and advisory fees, Other costs, and Refranchising gains was calculated by applying the 2019 full year marginal rate of 22.6%. The mark-to-market adjustment on option valuation was non-deductible for tax purposes. |
The 2019 non-GAAP adjusted results shown above and within this press release, which exclude the Special items, should not be construed as a substitute for or a better indicator of the company’s performance than the company’s GAAP results. Management believes presenting certain financial information excluding the Special items is important for purposes of comparison to current year results. In addition, management uses these metrics to evaluate the company’s underlying operating performance and to analyze trends.
Temporary Franchise Support
As previously mentioned, effective as of the first quarter of 2020, the company no longer presents certain royalty relief and discretionary marketing fund investments, included herein as “Temporary Franchise Support,” as Special items within its adjusted financial results. The prior period adjusted financial measures presented above in “Reconciliation of non-GAAP Financial Measures” have also been revised to remove the impact of these items. The Temporary Franchise Support concluded in the third quarter of 2020.
Temporary Franchise Support investments were
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
|
|
|
|
|
|
|||||||
Royalty relief (a) |
$ |
3,469 |
$ |
6,353 |
$ |
14,270 |
$ |
13,692 |
|||||
Marketing fund investments (b) |
|
10,000 |
|
5,000 |
|
15,000 |
|
7,500 |
|||||
Total Temporary Franchise Support |
$ |
13,469 |
$ |
11,353 |
$ |
29,270 |
$ |
21,192 |
(a) |
Represents financial assistance provided to the |
|
(b) |
Represents incremental discretionary marketing fund investments in excess of contractual company-owned restaurant-level contributions, which were made as part of our previously announced temporary financial support package to our franchisees. The marketing fund investments are included in Unallocated corporate expenses. |
Free Cash Flow
We define free cash flow as net cash provided by operating activities (from the Condensed Consolidated Statements of Cash Flows) less the purchases of property and equipment and dividends paid to preferred shareholders. 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. The company’s free cash flow for the first nine months of 2020 and 2019, respectively, was as follows (in thousands):
Nine Months Ended |
|||||||||
|
|
|
|||||||
2020 |
|
2019 |
|||||||
Net cash provided by operating activities |
$ |
168,547 |
|
$ |
49,999 |
|
|||
Purchases of property and equipment |
|
(24,269 |
) |
|
(27,547 |
) |
|||
Dividends paid to preferred shareholders |
|
(10,237 |
) |
|
(6,608 |
) |
|||
Free cash flow |
$ |
134,041 |
|
$ |
15,844 |
|
Participating Securities Earnings Per Share
We compute earnings (loss) per common share using the two-class method, by which net income attributable to participating securities, in addition to preferred stock dividends and accretion, is deducted from net income attributable to the company to determine net income attributable to common shareholders. Net income attributable to participating securities is the portion of undistributed earnings, defined as net income attributable to the company, less dividends paid to common and preferred shareholders, that would be allocated to the holders of participating securities on an as-converted basis.
The calculation to determine the amount of undistributed earnings to allocate to participating securities is as follow (in thousands):
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
Allocation |
|
|
|
Allocation |
||||||||
Calculation of net income attributable to participating securities and common shareholders: | ||||||||||||||
Share count allocation calculation: | ||||||||||||||
Diluted weighted average common shares outstanding |
|
32,971 |
|
85.7 |
% |
|
32,643 |
|
85.6 |
% |
||||
Participating preferred stock weighted average shares outstanding, as-converted (252,530,000/ |
|
5,045 |
|
13.1 |
% |
|
5,045 |
|
13.2 |
% |
||||
Participating unvested restricted stock weighted average shares outstanding |
|
465 |
|
1.2 |
% |
|
452 |
|
1.2 |
% |
||||
Total share count |
|
38,481 |
|
100.0 |
% |
|
38,140 |
|
100.0 |
% |
||||
Undistributed earnings allocation: | ||||||||||||||
Net income attributable to the company |
$ |
15,708 |
|
$ |
44,765 |
|
||||||||
Dividends paid to common and preferred stock |
|
(10,797 |
) |
|
(32,214 |
) |
||||||||
Total undistributed earnings |
$ |
4,911 |
|
$ |
12,551 |
|
||||||||
Net income attributable to participating securities: | ||||||||||||||
Total undistributed earnings - allocable to participating preferred stock |
$ |
(644 |
) |
13.1 |
% |
$ |
(1,660 |
) |
13.2 |
% |
||||
Total undistributed earnings - allocable to participating unvested restricted stock |
|
(59 |
) |
1.2 |
% |
|
(149 |
) |
1.2 |
% |
||||
Total net income attributable to participating securities |
$ |
(703 |
) |
14.3 |
% |
$ |
(1,809 |
) |
14.4 |
% |
||||
Net income attributable to common shareholders: | ||||||||||||||
Net income attributable to the company |
$ |
15,708 |
|
$ |
44,765 |
|
||||||||
Dividends paid to participating securities and accretion |
|
(3,548 |
) |
|
(10,546 |
) |
||||||||
Net income attributable to participating securities |
|
(703 |
) |
|
(1,809 |
) |
||||||||
Net income attributable to common shareholders |
$ |
11,457 |
|
$ |
32,410 |
|
Condensed Consolidated Balance Sheets | ||||||||
|
|
|
||||||
2020 |
|
2019 |
||||||
(In thousands) |
(Unaudited) |
|
(Note) |
|||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
140,050 |
|
$ |
27,911 |
|
||
Accounts receivable, net |
|
69,332 |
|
|
70,462 |
|
||
Notes receivable, current portion |
|
10,180 |
|
|
7,790 |
|
||
Income tax receivable |
|
1,903 |
|
|
4,024 |
|
||
Inventories |
|
28,702 |
|
|
27,529 |
|
||
Prepaid expenses and other current assets |
|
29,771 |
|
|
43,830 |
|
||
Total current assets |
|
279,938 |
|
|
181,546 |
|
||
Property and equipment, net |
|
199,291 |
|
|
211,741 |
|
||
Finance lease right-of-use assets, net |
|
9,458 |
|
|
9,383 |
|
||
Operating lease right-of-use assets |
|
139,653 |
|
|
148,229 |
|
||
Notes receivable, less current portion, net |
|
34,319 |
|
|
33,010 |
|
||
|
80,022 |
|
|
80,340 |
|
|||
Deferred income taxes |
|
7,454 |
|
|
1,839 |
|
||
Other assets |
|
66,540 |
|
|
64,633 |
|
||
Total assets |
$ |
816,675 |
|
$ |
730,721 |
|
||
Liabilities, Series B Convertible Preferred Stock, Redeemable noncontrolling interests and Stockholders' deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable |
$ |
32,288 |
|
$ |
29,141 |
|
||
Income and other taxes payable |
|
10,034 |
|
|
7,599 |
|
||
Accrued expenses and other current liabilities |
|
153,171 |
|
|
108,517 |
|
||
Current deferred revenue |
|
17,916 |
|
|
17,673 |
|
||
Current finance lease liabilities |
|
2,229 |
|
|
1,789 |
|
||
Current operating lease liabilities |
|
24,853 |
|
|
23,226 |
|
||
Current portion of long-term debt |
|
20,000 |
|
|
20,000 |
|
||
Total current liabilities |
|
260,491 |
|
|
207,945 |
|
||
Deferred revenue |
|
13,471 |
|
|
14,722 |
|
||
Long-term finance lease liabilities |
|
7,454 |
|
|
7,629 |
|
||
Long-term operating lease liabilities |
|
116,684 |
|
|
125,297 |
|
||
Long-term debt, less current portion, net |
|
328,079 |
|
|
347,290 |
|
||
Deferred income taxes |
|
899 |
|
|
2,649 |
|
||
Other long-term liabilities |
|
103,744 |
|
|
84,927 |
|
||
Total liabilities |
|
830,822 |
|
|
790,459 |
|
||
Series B Convertible Preferred Stock |
|
251,864 |
|
|
251,133 |
|
||
Redeemable noncontrolling interests |
|
6,834 |
|
|
5,785 |
|
||
Total Stockholders' deficit |
|
(272,845 |
) |
|
(316,656 |
) |
||
Total liabilities, Series B Convertible Preferred Stock, Redeemable noncontrolling interests and Stockholders' deficit |
$ |
816,675 |
|
$ |
730,721 |
|
||
Note: The Condensed Consolidated Balance Sheet has been derived from the audited consolidated financial statements, but do not include all information and footnotes required by accounting principles generally accepted in |
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Domestic company-owned restaurant sales |
$ |
178,371 |
|
$ |
165,135 |
|
$ |
526,317 |
|
$ |
490,594 |
|
||||
|
25,281 |
|
|
15,924 |
|
|
68,895 |
|
|
53,215 |
|
|||||
|
181,338 |
|
|
154,703 |
|
|
504,379 |
|
|
450,735 |
|
|||||
International revenues |
|
33,440 |
|
|
24,679 |
|
|
87,592 |
|
|
75,843 |
|
||||
Other revenues |
|
54,511 |
|
|
43,265 |
|
|
156,240 |
|
|
131,347 |
|
||||
Total revenues |
|
472,941 |
|
|
403,706 |
|
|
1,343,423 |
|
|
1,201,734 |
|
||||
Costs and expenses: | ||||||||||||||||
Operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||||
Domestic company-owned restaurant expenses |
|
144,803 |
|
|
134,037 |
|
|
419,082 |
|
|
399,040 |
|
||||
|
167,937 |
|
|
144,624 |
|
|
466,676 |
|
|
419,925 |
|
|||||
International expenses |
|
19,370 |
|
|
13,557 |
|
|
52,775 |
|
|
42,514 |
|
||||
Other expenses |
|
50,917 |
|
|
42,952 |
|
|
148,219 |
|
|
129,019 |
|
||||
General and administrative expenses |
|
52,601 |
|
|
53,503 |
|
|
148,680 |
|
|
153,356 |
|
||||
Depreciation and amortization |
|
12,764 |
|
|
11,832 |
|
|
37,436 |
|
|
35,102 |
|
||||
Total costs and expenses |
|
448,392 |
|
|
400,505 |
|
|
1,272,868 |
|
|
1,178,956 |
|
||||
Refranchising gains |
|
- |
|
|
1,726 |
|
|
- |
|
|
1,889 |
|
||||
Operating income |
|
24,549 |
|
|
4,927 |
|
|
70,555 |
|
|
24,667 |
|
||||
Net interest expense |
|
(3,636 |
) |
|
(4,249 |
) |
|
(11,230 |
) |
|
(14,797 |
) |
||||
Income before income taxes |
|
20,913 |
|
|
678 |
|
|
59,325 |
|
|
9,870 |
|
||||
Income tax expense |
|
4,516 |
|
|
421 |
|
|
11,984 |
|
|
2,535 |
|
||||
Net income before attribution to noncontrolling interests |
|
16,397 |
|
|
257 |
|
|
47,341 |
|
|
7,335 |
|
||||
Net (income) loss attributable to noncontrolling interests |
|
(689 |
) |
|
128 |
|
|
(2,576 |
) |
|
(327 |
) |
||||
Net income attributable to the company |
$ |
15,708 |
|
$ |
385 |
|
$ |
44,765 |
|
$ |
7,008 |
|
||||
Calculation of net income (loss) for earnings (loss) per share: | ||||||||||||||||
Net income attributable to the company |
$ |
15,708 |
|
$ |
385 |
|
$ |
44,765 |
|
$ |
7,008 |
|
||||
Dividends paid to participating securities and accretion |
|
(3,548 |
) |
|
(3,473 |
) |
|
(10,546 |
) |
|
(9,029 |
) |
||||
Net income attributable to participating securities |
|
(703 |
) |
|
- |
|
|
(1,809 |
) |
|
- |
|
||||
Net income (loss) attributable to common shareholders |
$ |
11,457 |
|
$ |
(3,088 |
) |
$ |
32,410 |
|
$ |
(2,021 |
) |
||||
Basic earnings (loss) per common share |
$ |
0.35 |
|
$ |
(0.10 |
) |
$ |
1.00 |
|
$ |
(0.06 |
) |
||||
Diluted earnings (loss) per common share |
$ |
0.35 |
|
$ |
(0.10 |
) |
$ |
0.99 |
|
$ |
(0.06 |
) |
||||
Basic weighted average common shares outstanding |
|
32,616 |
|
|
31,601 |
|
|
32,347 |
|
|
31,581 |
|
||||
Diluted weighted average common shares outstanding |
|
32,971 |
|
|
31,601 |
|
|
32,643 |
|
|
31,581 |
|
||||
Dividends declared per common share |
$ |
0.225 |
|
$ |
0.225 |
|
$ |
0.675 |
|
$ |
0.675 |
|
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
(In thousands) | ||||||||
Operating activities | ||||||||
Net income before attribution to noncontrolling interests |
$ |
47,341 |
|
$ |
7,335 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
(Credit) provision for uncollectible accounts and notes receivable |
|
(334 |
) |
|
1,646 |
|
||
Depreciation and amortization |
|
37,436 |
|
|
35,102 |
|
||
Deferred income taxes |
|
(4,696 |
) |
|
(2,386 |
) |
||
Preferred stock option mark-to-market adjustment |
|
— |
|
|
5,914 |
|
||
Stock-based compensation expense |
|
13,071 |
|
|
12,295 |
|
||
Refranchising gains |
|
— |
|
|
(1,889 |
) |
||
Other |
|
1,233 |
|
|
3,618 |
|
||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable |
|
(4,378 |
) |
|
(8,682 |
) |
||
Income tax receivable |
|
3,131 |
|
|
10,241 |
|
||
Inventories |
|
(1,173 |
) |
|
1,891 |
|
||
Prepaid expenses and other current assets |
|
14,393 |
|
|
(4,837 |
) |
||
Other assets and liabilities |
|
18,080 |
|
|
(3,245 |
) |
||
Accounts payable |
|
3,147 |
|
|
14,921 |
|
||
Income and other taxes payable |
|
2,435 |
|
|
1,285 |
|
||
Accrued expenses and other current liabilities |
|
40,112 |
|
|
(19,149 |
) |
||
Deferred revenue |
|
(1,251 |
) |
|
(4,061 |
) |
||
Net cash provided by operating activities |
|
168,547 |
|
|
49,999 |
|
||
Investing activities | ||||||||
Purchases of property and equipment |
|
(24,269 |
) |
|
(27,547 |
) |
||
Notes issued |
|
(13,240 |
) |
|
(7,073 |
) |
||
Repayments of notes issued |
|
8,906 |
|
|
3,415 |
|
||
Proceeds from divestitures of restaurants |
|
— |
|
|
5,995 |
|
||
Other |
|
15 |
|
|
1,068 |
|
||
Net cash used in investing activities |
|
(28,588 |
) |
|
(24,142 |
) |
||
Financing activities | ||||||||
Proceeds from issuance of preferred stock |
|
— |
|
|
252,530 |
|
||
Repayments of term loan |
|
(15,000 |
) |
|
(10,000 |
) |
||
Net repayments of revolving credit facilities |
|
(5,000 |
) |
|
(236,966 |
) |
||
Dividends paid to common stockholders |
|
(21,856 |
) |
|
(21,371 |
) |
||
Dividends paid to preferred stockholders |
|
(10,237 |
) |
|
(6,608 |
) |
||
Issuance costs associated with preferred stock |
|
— |
|
|
(7,535 |
) |
||
Tax payments for equity award issuances |
|
(1,665 |
) |
|
(1,150 |
) |
||
Proceeds from exercise of stock options |
|
29,204 |
|
|
332 |
|
||
Contributions from noncontrolling interests |
|
— |
|
|
840 |
|
||
Distributions to noncontrolling interests |
|
(1,778 |
) |
|
(645 |
) |
||
Other |
|
(1,105 |
) |
|
(101 |
) |
||
Net cash used in financing activities |
|
(27,437 |
) |
|
(30,674 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
(383 |
) |
|
(73 |
) |
||
Change in cash and cash equivalents |
|
112,139 |
|
|
(4,890 |
) |
||
Cash and cash equivalents at beginning of period |
|
27,911 |
|
|
33,258 |
|
||
Cash and cash equivalents at end of period |
$ |
140,050 |
|
$ |
28,368 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005217/en/
Chief Financial Officer
502-261-7272
Vice President of Investor Relations and Strategy
502-261-7272
Source: Papa John’s