Papa John’s Announces First Quarter 2020 Results and Provides Business Update in Response to COVID-19 Pandemic
Highlights
-
First quarter 2020 earnings per diluted share of
$0.15 compared to first quarter 2019 loss per diluted share of ($0.12 ) -
System-wide North America comparable sales increase of 5.3% - International comparable sales increase of 2.3%
-
Cash flow from operations of
$33.7 million ; free cash flow of$24.4 million for first quarter 2020 - Launched No Contact Delivery and Carryout domestically and in many international markets and on plan to hire thousands of new team members
-
Preliminary estimated April fiscal period comparable sales increases of 26.9% for
North America and 1.4% for international
Global restaurant and comparable sales information and operating highlights for the first quarter ended
First Quarter | |||
2020 |
2019 |
||
Global restaurant sales growth / (decline) (a) |
4.3% |
(5.5%) |
|
Global restaurant sales growth / (decline), | |||
excluding the impact of foreign currency (a) |
5.4% |
(3.7%) |
|
Comparable sales growth / (decline) (b) | |||
Domestic company-owned restaurants |
6.1% |
(9.0%) |
|
5.1% |
(6.1%) |
||
5.3% |
(6.9%) |
||
System-wide international restaurants |
2.3% |
(0.1%) |
(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
We believe
Revenue and Operating Highlights
First Quarter | ||||||
In thousands, except per share amounts | 2020 |
2019 |
Increase (Decrease) |
|||
Total revenue |
|
|
|
|||
Income (loss) before income taxes |
11,505 |
(767) |
12,272 |
|||
Net income (loss) |
8,443 |
(1,731) |
10,174 |
|||
Diluted earnings (loss) per share |
0.15 |
(0.12) |
0.27 |
|||
Adjusted diluted earnings per share (a) |
0.15 |
0.19 |
(0.04) |
(a) Adjusted to exclude Non-GAAP items in 2019 referred to as “Special charges,” which impact comparability. The reconciliation of GAAP to non-GAAP financial results is included in the table below.
Adjusted Financial Results
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. We present these non-GAAP measures because we believe the Special charges in the first quarter of 2019 impact comparability to our first quarter 2020 results.
First Quarter | ||||||
(In thousands, except per share amounts) |
2020 |
2019 |
||||
GAAP income (loss) before income taxes |
$ |
11,505 |
$ |
(767) |
||
Special charges: | ||||||
Legal and advisory fees (1) |
|
- |
|
5,067 |
||
Mark-to-market adjustment on option valuation (2) |
|
- |
|
5,914 |
||
Adjusted income before income taxes |
$ |
11,505 |
$ |
10,214 |
||
GAAP net income (loss) attributable to common shareholders |
$ |
4,972 |
$ |
(3,801) |
||
Special charges: | ||||||
Legal and advisory fees (1) |
|
- |
|
5,067 |
||
Mark-to-market adjustment on option valuation (2) |
|
- |
|
5,914 |
||
Tax effect of Legal and advisory fees (3) |
|
- |
|
(1,176) |
||
Adjusted net income attributable to common shareholders |
$ |
4,972 |
$ |
6,004 |
||
GAAP diluted earnings (loss) per share |
$ |
0.15 |
$ |
(0.12) |
||
Special charges: | ||||||
Legal and advisory fees (1) |
|
- |
|
0.16 |
||
Mark-to-market adjustment on option valuation (2) |
|
- |
|
0.19 |
||
Tax effect of Legal and advisory fees (3) |
|
- |
|
(0.04) |
||
Adjusted diluted earnings per share |
$ |
0.15 |
$ |
0.19 |
(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) |
|
The tax effect for Legal and advisory fees was calculated by applying the 2019 marginal rate of 23.2%. 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 charges, 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 charges 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 charges within its adjusted financial results. The prior period adjusted financial measures presented above in “Adjusted Financial Results” have also been revised to remove the impact of these items.
Temporary Franchise Support investments were
First Quarter | ||||||
|
|
|||||
Royalty relief (a) |
$ |
5,656 |
$ |
4,873 |
||
Marketing fund investments (b) |
|
5,000 |
|
- |
||
Total Temporary Franchise Support (c) |
$ |
10,656 |
$ |
4,873 |
(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. |
(c) |
|
The company expects to provide approximately |
Revenue Highlights
Consolidated revenues increased
-
Excluding the impact of refranchising,
Domestic Company -owned restaurant sales increased due to positive comparable sales of 6.1%. -
North America commissary revenues increased primarily due to pricing associated with higher commodities costs, primarily cheese. -
North America franchise royalties and fees increased primarily due to positive comparable sales of 5.1%. -
International revenues, excluding refranchising, increased primarily due to higher
United Kingdom commissary revenues and higher royalties from increased equivalent units and higher comparable sales of 2.3%. The higher revenues were partially offset by lower development fees and unfavorable foreign exchange rates. - Other revenues increased due to higher marketing fund revenue primarily due to an increase in the national marketing fund contribution rate in 2020 and higher online revenues.
Operating Highlights
The table below summarizes income before income taxes on a reporting segment basis. Alongside the GAAP income (loss) before income taxes data, we have included “adjusted” income (loss) before income taxes to exclude Special charges. We believe this non-GAAP measure is important for purposes of comparison to prior year results.
First Quarter | |||||||||||||||
Reported |
|
Reported |
|
Special |
|
Adjusted |
|
Adjusted |
|||||||
|
|
|
|
charges |
|
|
|
Increase |
|||||||
(In thousands) |
2020 |
|
2019 |
|
in 2019 |
|
2019 |
|
(Decrease) |
||||||
$ |
8,667 |
$ |
4,597 |
$ |
- |
$ |
4,597 |
$ |
4,070 |
||||||
|
7,509 |
|
7,512 |
|
- |
|
7,512 |
|
(3) |
||||||
|
17,326 |
|
15,691 |
|
- |
|
15,691 |
|
1,635 |
||||||
International |
|
4,499 |
|
5,317 |
|
- |
|
5,317 |
|
(818) |
|||||
All others |
|
(259) |
|
(506) |
|
- |
|
(506) |
|
247 |
|||||
Unallocated corporate expenses |
|
(26,051) |
|
(32,465) |
|
10,981 |
|
(21,484) |
|
(4,567) |
|||||
Elimination of intersegment profits |
|
(186) |
|
(913) |
|
- |
|
(913) |
|
727 |
|||||
Total income (loss) before income taxes |
$ |
11,505 |
$ |
(767) |
$ |
10,981 |
$ |
10,214 |
$ |
1,291 |
Consolidated income before income taxes of
-
Domestic Company -owned restaurants income before income taxes increased$4.1 million primarily due to higher profits from positive comparable sales of 6.1% and lower loyalty program costs, partially offset by higher commodities costs, primarily cheese. -
North America Franchising income before income taxes was
$1.6 million higher primarily due to higher comparable sales of 5.1%. -
International income before income taxes decreased
$0.8 million primarily due to lower development fee revenues, higher general and administrative costs and the unfavorable impact of foreign exchange rates, partially offset by higher royalty revenues attributable to increased units and higher comparable sales. -
Unallocated corporate expenses increased
$4.6 million , primarily due to a$5.0 million discretionary marketing fund investment as part of the formal relief program, as described above in “Temporary Franchise Support,” and higher management incentive costs and legal fees. These increases were partially offset by a decrease in interest expense from a lower average debt balance and lower interest rates.
Income tax expense was
Diluted earnings per common share was
Free Cash Flow
The company’s free cash flow, a non-GAAP financial measure, for the first quarter of 2020 and 2019, respectively, was as follows (in thousands):
First Quarter | |||||||
2020 |
2019 |
||||||
Net cash provided by operating activities (a) |
$ |
33,734 |
$ |
13,813 |
|||
Purchases of property and equipment |
|
(5,933) |
|
(8,658) |
|||
Dividends paid to preferred shareholders |
|
(3,412) |
|
(2,040) |
|||
Free cash flow |
$ |
24,389 |
$ |
3,115 |
(a) The increase of
We define free cash flow as net cash provided by operating activities (from the 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.
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
Cash Dividend
The company declared common and preferred stock dividends of
First
|
Second
|
|||||
Common stock dividends ( |
$ |
7,300 |
$ |
7,300 |
||
Common stock dividends to preferred shareholders ( |
|
1,140 |
|
1,140 |
||
Preferred dividends (3.6% of the investment per annum) |
|
2,270 |
|
2,270 |
||
Total dividends |
$ |
10,710 |
$ |
10,710 |
||
(a) Common stock dividends payable to holders of Series B Preferred Stock are on an as-converted to common stock basis |
The declaration and payment of any future dividends on our common stock will be at the discretion of our Board of Directors, subject to the company’s financial results, cash requirements, and other factors deemed relevant by our Board of Directors. The Series B preferred stockholders receive quarterly preferred dividends and common stock dividends on an as-converted to common stock basis.
Global Restaurant Unit Data
At
Domestic Company- owned |
Franchised North America |
Total North America |
International | System-wide | ||||||
First Quarter | ||||||||||
Beginning - |
598 |
2,690 |
3,288 |
2,107 |
5,395 |
|||||
Opened |
1 |
15 |
16 |
18 |
34 |
|||||
Closed |
- |
(19) |
(19) |
(32) |
(51) |
|||||
Ending - |
599 |
2,686 |
3,285 |
2,093 |
5,378 |
|||||
Net unit growth (decline) |
1 |
(4) |
(3) |
(14) |
(17) |
|||||
% increase (decrease) |
0.2% |
(0.1%) |
(0.1%) |
(0.7%) |
(0.3%) |
(1) Temporary closures as a result of the COVID-19 outbreak are not reflected as “closed” in the restaurant progression above. See “Update on Impact of COVID-19 on International and North America Markets” section below.
Our development pipeline as of
Update on Impact of COVID-19 on International and North America Markets
The COVID-19 outbreak has presented evolving developments domestically and internationally. The outbreak began to result in disruption in certain of our international markets beginning in
Our primary focus continues to be the safety of our team members, franchisees, and customers. The company has taken steps to mitigate the impact of the COVID-19 pandemic by implementing extra health and safety measures across our business, including No Contact Delivery and enhanced cleaning and sanitization measures, for the protection of both our customers and team members. We have expanded our corporate employee benefits to include free virtual doctor visits. This is in addition to existing employee benefits of no-cost mental health support and affordable health plan options. In addition, the company is in the process of hiring thousands of team members to help serve our customers.
Of the company’s approximately 2,100 international franchised stores, approximately 375 are temporarily closed, principally in
Although March sales in
Our sales results by month for the first quarter, and our preliminary, estimated comparable sales information for the first month of the second quarter of 2020 (Period 4) are as follows:
Period 1 | Period 2 | Period 3 | Period 4 | |||||
2019, to | 2020, to | 2020, to | 2020, to | |||||
2020 |
|
2020 |
|
2020 |
|
2020 |
||
Comparable sales growth/(decline) (a) | ||||||||
9.4% |
7.6% |
2.5% |
22.0% |
|||||
7.1% |
4.8% |
3.9% |
28.4% |
|||||
7.6% |
5.4% |
3.6% |
26.9% |
|||||
System-wide international restaurants |
4.9% |
2.9% |
(0.6%) |
1.4% |
(a) 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
We have sufficient cash on hand to support our current operations and we have access to approximately
Withdrawal of 2020 Outlook
There continues to be many uncertainties related to the COVID-19 pandemic. In late March, the company withdrew its previously provided financial outlook for 2020.
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 the preliminary estimated same store sales growth and related trends, 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 the projections for sales trends and comparable sales, temporary restaurant closures, 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, royalty relief, the effectiveness of our strategic turnaround efforts and other business initiatives, marketing efforts, liquidity, compliance with debt covenants, stockholder and other stakeholder engagement, strategic decisions and actions, dividends, effective tax rates, regulatory changes and impacts, adoption of new accounting standards, 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:
- the ability of the company to manage difficulties associated with or related to the COVID-19 pandemic, including risks related to: the impact of governmental restrictions on freedom of movement and business operations including quarantines, social distancing requirements and mandatory business closures; the virus’s impact on the availability of our workforce; the potential disruption of our supply chain; changes in consumer demand or behavior; the overall contraction in global economic activity, including rising unemployment; our liquidity position; and our ability to navigate changing governmental programs and regulations relating to the pandemic; and the increased risk of phishing and other cyber-attacks;
-
the assumption that the store closures in international markets and non-traditional restaurants in
North America are not expected to be permanent; the assumption that our delivery restaurants will continue to stay open and be deemed essential businesses by national, state and local authorities in most of the jurisdictions in which we operate; - increased costs for branding initiatives and launching new advertising and marketing campaigns and promotions to improve consumer sentiment and sales trends, and the risk that such initiatives will not be effective;
-
the ability of the company to ensure the long-term success of the brand through significant investments committed to our
U.S. franchise system, including marketing fund investments and royalty relief; - the ability of the company to improve customer sentiment and sales trends through advertising, marketing and promotional activities;
- risks related to social media, including publicity adversely and rapidly impacting our brand and reputation;
- aggressive changes in pricing or other marketing or promotional strategies by competitors, which may adversely affect sales and profitability; and new product and concept developments by food industry competitors;
- changes in consumer preferences or consumer buying habits, including the growing popularity of delivery aggregators, as well as changes in general economic conditions or other factors that may affect consumer confidence and discretionary spending, including higher unemployment;
- the adverse impact on the company or our results caused by global health concerns, product recalls, food quality or safety issues, incidences of foodborne illness, food contamination and other general public health concerns about our company-owned or franchised restaurants or others in the restaurant industry;
- the effectiveness of our technology investments and changes in unit-level operations;
- the ability of the company and its franchisees to meet planned growth targets and operate new and existing restaurants profitably, including difficulties finding qualified franchisees, store level employees or suitable sites;
- increases in food costs or sustained higher other operating costs. This could include increased employee compensation, benefits, insurance, tax rates, new regulatory requirements or increasing compliance costs;
- increases in insurance claims and related costs for programs funded by the company up to certain retention limits, including medical, owned and non-owned vehicles, workers’ compensation, general liability and property;
- disruption of our supply chain or commissary operations which could be caused by our sole source of supply of cheese or limited source of suppliers for other key ingredients or more generally due to weather, natural disasters including drought, disease, or geopolitical or other disruptions beyond our control;
-
increased risks associated with our international operations, including economic and political conditions and risks associated with the withdrawal of the
United Kingdom from theEuropean Union , instability or uncertainty in our international markets, especially emerging markets, fluctuations in currency exchange rates, difficulty in meeting planned sales targets and new store growth; -
the impact of current or future claims and litigation and our ability to comply with current, proposed or future legislation that could impact our business including compliance with the
European Union General Data Protection Regulation; - the company's ability to continue to pay dividends to shareholders based upon profitability, cash flows and capital adequacy if restaurant sales and operating results decline;
- failure to effectively manage recent transitions within our executive leadership team or to otherwise successfully execute succession planning;
- disruption of critical business or information technology systems, or those of our suppliers, and risks associated with systems failures and data privacy and security breaches, including theft of confidential company, employee and customer information, including payment cards; and
- changes in Federal or state income, general and other tax laws, rules and regulations and changes in generally accepted accounting principles.
These and other risk factors are discussed in detail in “Part I. Item 1A. – Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended
For more information about the company, please visit www.papajohns.com.
Condensed Consolidated Balance Sheets | ||||||
2020 |
2019 |
|||||
(In thousands) |
(Unaudited) |
(Note) |
||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents |
$ |
36,376 |
$ |
27,911 |
||
Accounts receivable, net |
|
77,607 |
|
80,921 |
||
Notes receivable, current portion |
|
9,343 |
|
7,790 |
||
Income tax receivable |
|
4,101 |
|
4,024 |
||
Inventories |
|
29,810 |
|
27,529 |
||
Prepaid expenses and other current assets |
|
27,956 |
|
33,371 |
||
Total current assets |
|
185,193 |
|
181,546 |
||
Property and equipment, net |
|
205,035 |
|
211,741 |
||
Finance lease right-of-use assets, net |
|
9,365 |
|
9,383 |
||
Operating lease right-of-use assets |
|
144,160 |
|
148,229 |
||
Notes receivable, less current portion, net |
|
36,527 |
|
33,010 |
||
|
79,739 |
|
80,340 |
|||
Deferred income taxes |
|
1,694 |
|
1,839 |
||
Other assets |
|
56,555 |
|
64,633 |
||
Total assets |
$ |
718,268 |
$ |
730,721 |
||
Liabilities, Series B Convertible Preferred Stock, Redeemable noncontrolling interests and Stockholders' deficit | ||||||
Current liabilities: | ||||||
Accounts payable |
$ |
33,745 |
$ |
29,141 |
||
Income and other taxes payable |
|
8,167 |
|
7,599 |
||
Accrued expenses and other current liabilities |
|
121,835 |
|
120,566 |
||
Current deferred revenue |
|
6,250 |
|
5,624 |
||
Current finance lease liabilities |
|
1,913 |
|
1,789 |
||
Current operating lease liabilities |
|
23,118 |
|
23,226 |
||
Current portion of long-term debt |
|
20,623 |
|
20,000 |
||
Total current liabilities |
|
215,651 |
|
207,945 |
||
Deferred revenue |
|
12,694 |
|
14,722 |
||
Long-term finance lease liabilities |
|
7,555 |
|
7,629 |
||
Long-term operating lease liabilities |
|
121,368 |
|
125,297 |
||
Long-term debt, less current portion, net |
|
342,611 |
|
347,290 |
||
Deferred income taxes |
|
607 |
|
2,649 |
||
Other long-term liabilities |
|
86,227 |
|
84,927 |
||
Total liabilities |
|
786,713 |
|
790,459 |
||
Series B Convertible Preferred Stock |
|
251,893 |
|
251,133 |
||
Redeemable noncontrolling interests |
|
5,962 |
|
5,785 |
||
Total Stockholders' deficit |
|
(326,300) |
|
(316,656) |
||
Total liabilities, Series B Convertible Preferred Stock, Redeemable noncontrolling interests and Stockholders' deficit |
$ |
718,268 |
$ |
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 the United | ||||||
States for a complete set of financial statements. |
Condensed Consolidated Statements of Operations | |||||
Three Months Ended | |||||
|
|
||||
(In thousands, except per share amounts) | (Unaudited) | (Unaudited) | |||
Revenues: | |||||
Domestic company-owned restaurant sales |
|
|
|||
19,440 |
17,530 |
||||
155,422 |
148,904 |
||||
International revenues |
26,059 |
25,667 |
|||
Other revenues |
47,498 |
44,501 |
|||
Total revenues |
409,859 |
398,405 |
|||
|
|||||
Costs and expenses: |
|
||||
Operating costs (excluding depreciation and amortization |
|
||||
shown separately below): |
|
||||
Domestic company-owned restaurant expenses |
129,111 |
133,053 |
|||
144,272 |
138,557 |
||||
International expenses |
15,101 |
14,305 |
|||
Other expenses |
45,957 |
44,097 |
|||
General and administrative expenses |
47,651 |
51,135 |
|||
Depreciation and amortization |
12,295 |
11,749 |
|||
Total costs and expenses |
394,387 |
392,896 |
|||
Operating income |
15,472 |
5,509 |
|||
Net interest expense |
(3,967) |
(6,276) |
|||
Income (loss) before income taxes |
11,505 |
(767) |
|||
Income tax expense |
2,512 |
831 |
|||
Net income (loss) before attribution to noncontrolling interests |
8,993 |
(1,598) |
|||
Net income attributable to noncontrolling interests |
(550) |
(133) |
|||
Net income (loss) attributable to the company |
|
|
|||
|
|||||
Calculation of net income (loss) for earnings per share: |
|
||||
Net income (loss) attributable to the company |
|
|
|||
Preferred stock dividends and accretion |
(3,471) |
(2,070) |
|||
Net income (loss) attributable to common shareholders |
|
|
|||
|
|||||
Basic earnings (loss) per common share |
|
|
|||
Diluted earnings (loss) per common share |
|
|
|||
|
|||||
Basic weighted average common shares outstanding |
32,093 |
31,554 |
|||
Diluted weighted average common shares outstanding |
32,320 |
31,554 |
|||
|
|||||
Dividends declared per common share |
|
|
Condensed Consolidated Statements of Cash Flows | ||||||
Three Months Ended | ||||||
(In thousands) | ||||||
(Unaudited) | (Unaudited) | |||||
Operating activities | ||||||
Net income (loss) before attribution to noncontrolling interests |
|
|
||||
Adjustments to reconcile net income (loss) to net cash provided by | ||||||
operating activities: | ||||||
Provision (credit) for uncollectible accounts and notes receivable |
768 |
(50) |
||||
Depreciation and amortization |
12,295 |
11,749 |
||||
Deferred income taxes |
1,185 |
(1,309) |
||||
Preferred stock option mark-to-market adjustment | — |
5,914 |
||||
Stock-based compensation expense |
3,950 |
3,731 |
||||
Other |
234 |
838 |
||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable |
(1,839) |
(3,443) |
||||
Income tax receivable |
932 |
10,715 |
||||
Inventories |
(2,281) |
810 |
||||
Prepaid expenses |
6,118 |
7,888 |
||||
Other current assets |
(532) |
(13,855) |
||||
Other assets and liabilities |
2,670 |
(3,258) |
||||
Accounts payable |
4,604 |
8,108 |
||||
Income and other taxes payable |
568 |
746 |
||||
Accrued expenses and other current liabilities |
(1,903) |
(11,003) |
||||
Deferred revenue |
(2,028) |
(2,170) |
||||
Net cash provided by operating activities |
33,734 |
13,813 |
||||
Investing activities | ||||||
Purchases of property and equipment |
(5,933) |
(8,658) |
||||
Loans issued |
(7,413) |
(859) |
||||
Repayments of loans issued |
3,790 |
925 |
||||
Other |
1 |
329 |
||||
Net cash used in investing activities |
(9,555) |
(8,263) |
||||
Financing activities | ||||||
Proceeds from issuance of preferred stock | — |
252,530 |
||||
Repayments of term loan |
(5,000) |
(5,000) |
||||
Net proceeds (repayments) of revolving credit facilities |
640 |
(240,026) |
||||
Dividends paid to common stockholders |
(7,237) |
(7,125) |
||||
Dividends paid to preferred stockholders |
(3,412) |
(2,040) |
||||
Issuance costs associated with preferred stock | — |
(7,179) |
||||
Tax payments for equity award issuances |
(1,383) |
(869) |
||||
Proceeds from exercise of stock options |
1,241 |
51 |
||||
Distributions to noncontrolling interest holders |
(30) |
(19) |
||||
Other |
(350) |
50 |
||||
Net cash used in financing activities |
(15,531) |
(9,627) |
||||
Effect of exchange rate changes on cash and cash equivalents |
(183) |
92 |
||||
Change in cash and cash equivalents |
8,465 |
(3,985) |
||||
Cash and cash equivalents at beginning of period |
27,911 |
33,258 |
||||
Cash and cash equivalents at end of period |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200506005133/en/
Vice President of Investor Relations and Strategy
Interim Principal Financial and Accounting Officer
502-261-7272
Source: Papa John’s