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TheStreet Open House

Papa John’s Announces First Quarter 2012 Results

Stock quotes in this article: PZZA

For more information about the company, please visit www.papajohns.com.

 
Papa John's International, Inc. and Subsidiaries
Consolidated Statements of Income
           
 
Three Months Ended
March 25, 2012   March 27, 2011
(In thousands, except per share amounts) (Unaudited) (Unaudited)
Revenues:
North America:
Domestic Company-owned restaurant sales $ 143,815 $ 138,671
Franchise royalties 20,518 19,731
Franchise and development fees 222 185
Domestic commissary sales 137,610 127,672
Other sales 12,258 13,447
International:
Royalties and franchise and development fees 4,486 3,762
Restaurant and commissary sales   12,367       8,999  
Total revenues 331,276 312,467
 
Costs and expenses:
Domestic Company-owned restaurant expenses:
Cost of sales 32,456 32,100
Salaries and benefits 38,813 37,649
Advertising and related costs 12,699 12,789
Occupancy costs 7,898 7,869
Other operating expenses   20,418       19,915  
Total domestic Company-owned restaurant expenses 112,284 110,322
 
Domestic commissary and other expenses:
Cost of sales 112,838 106,443
Salaries and benefits 9,003 9,011
Other operating expenses   14,306       13,585  
Total domestic commissary and other expenses 136,147 129,039
 
International operating expenses 10,392 7,728
General and administrative expenses 31,596 29,074
Other general expenses 5,674 781
Depreciation and amortization   7,927       8,312  
Total costs and expenses   304,020       285,256  
 
Operating income 27,256 27,211
Net interest expense   (118 )     (431 )
Income before income taxes 27,138 26,780
Income tax expense   9,068       9,231  
Net income, including noncontrolling interests 18,070 17,549
Net income attributable to noncontrolling interests   (1,326 )     (1,122 )
Net income, net of noncontrolling interests $ 16,744     $ 16,427  
 
Basic earnings per common share $ 0.70     $ 0.64  
Earnings per common share - assuming dilution $ 0.69     $ 0.64  
 
Basic weighted average shares outstanding   24,053       25,484  
Diluted weighted average shares outstanding   24,438       25,757  

 
Papa John's International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
   
 
March 25, December 25,
2012 2011
(In thousands) (Unaudited) (Note)
 
Assets
Current assets:
Cash and cash equivalents $ 45,112 $ 18,942
Accounts receivable, net 30,251 28,169
Notes receivable, net 4,278 4,221
Inventories 18,969 20,091
Prepaid expenses and other current assets 13,737 13,732
Deferred income taxes   6,858   7,636
Total current assets 119,205 92,791
 
Property and equipment, net 184,167 185,132
Notes receivable, less current portion, net 11,498 11,502
Goodwill 75,328 75,085
Other assets   26,407   25,872
Total assets $ 416,605 $ 390,382
 
 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 34,953 $ 32,966
Income and other taxes payable 13,819 3,969
Accrued expenses and other current liabilities   46,468   44,198
Total current liabilities 95,240 81,133
 
Deferred revenue 8,478 4,780
Long-term debt 50,000 51,489
Other long-term liabilities 23,795 22,014
Long-term accrued income taxes 3,993 3,597
Deferred income taxes   7,264   9,147
Total liabilities 188,770 172,160
 
Total stockholders' equity   227,835   218,222
Total liabilities and stockholders' equity $ 416,605 $ 390,382
 
 

Note: The balance sheet at December 25, 2011 has been derived from the audited consolidated financial statements at that date, but does not include all information and footnotes required by accounting principles generally accepted in the United States for a complete set of financial statements.

 
Papa John's International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
       
 
Three Months Ended
(In thousands) March 25, 2012     March 27, 2011
(Unaudited) (Unaudited)
 
Operating activities
Net income, including noncontrolling interests $ 18,070 $ 17,549

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for uncollectible accounts and notes receivable 547 39
Depreciation and amortization 7,927 8,312
Deferred income taxes (1,057 ) 2,664
Stock-based compensation expense 1,694 1,795
Excess tax benefit on equity awards (129 ) (107 )
Other 678 43
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (2,670 ) (3,011 )
Inventories 1,122 (28 )
Prepaid expenses and other current assets (5 ) (239 )
Other assets and liabilities 764 (721 )
Accounts payable 1,987 (4,818 )
Income and other taxes payable 9,850 4,874
Accrued expenses and other current liabilities 1,221 296
Long-term accrued income taxes 396 366
Deferred revenue   3,698     (327 )
Net cash provided by operating activities 44,093 26,687
 
Investing activities
Purchase of property and equipment (6,403 ) (4,823 )
Loans issued (687 ) (165 )
Repayments of loans issued 703 1,468
Other   5     -  
Net cash used in investing activities (6,382 ) (3,520 )
 
Financing activities
Net repayments on line of credit facility (1,489 ) (51,000 )
Excess tax benefit on equity awards 129 107
Tax payments for restricted stock (303 ) -
Proceeds from exercise of stock options 3,728 1,314
Acquisition of Company common stock (13,820 ) (4,119 )
Distributions to noncontrolling interests - (1,729 )
Other   82     (10 )
Net cash used in financing activities (11,673 ) (55,437 )
 
Effect of exchange rate changes on cash and cash equivalents   132     (6 )
Change in cash and cash equivalents 26,170 (32,276 )
Cash and cash equivalents at beginning of period   18,942     47,829  
 
Cash and cash equivalents at end of period $ 45,112   $ 15,553  




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