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Papa John’s Announces Second Quarter 2012 Results

Stocks 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 Six Months Ended
June 24, 2012   June 26, 2011 June 24, 2012   June 26, 2011
(In thousands, except per share amounts) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
North America:
Domestic Company-owned restaurant sales $ 143,527 $ 127,641 $ 287,342 $ 266,312
Franchise royalties 19,101 18,103 39,619 37,834
Franchise and development fees 206 124 428 309
Domestic commissary sales 126,593 121,027 264,203 248,699
Other sales 11,771 12,370 24,029 25,817
International:
Royalties and franchise and development fees 4,701 4,049 9,187 7,811
Restaurant and commissary sales   12,680       10,220     25,047       19,219  
Total revenues 318,579 293,534 649,855 606,001
 
Costs and expenses:
Domestic Company-owned restaurant expenses:
Cost of sales 32,881 30,162 65,337 62,262
Salaries and benefits 39,839 34,367 78,652 72,016
Advertising and related costs 13,278 11,898 25,977 24,687
Occupancy costs 8,619 7,939 16,517 15,808
Other operating expenses   20,830       18,492     41,248       38,407  
Total domestic Company-owned restaurant expenses 115,447 102,858 227,731 213,180
 
Domestic commissary and other expenses:
Cost of sales 104,412 103,529 217,250 209,972
Salaries and benefits 9,218 8,651 18,221 17,662
Other operating expenses   13,498       13,084     27,804       26,669  
Total domestic commissary and other expenses 127,128 125,264 263,275 254,303
 
International operating expenses 10,975 8,756 21,367 16,484
General and administrative expenses 31,463 27,617 63,059 56,691
Other general expenses 1,135 1,459 6,809 2,240
Depreciation and amortization   8,104       8,425     16,031       16,737  
Total costs and expenses   294,252       274,379     598,272       559,635  
 
Operating income 24,327 19,155 51,583 46,366
Net interest expense   (87 )     (88 )   (205 )     (519 )
Income before income taxes 24,240 19,067 51,378 45,847
Income tax expense   8,299       6,014     17,367       15,245  
Net income, including noncontrolling interests 15,941 13,053 34,011 30,602
Net income attributable to noncontrolling interests   (1,172 )     (929 )   (2,498 )     (2,051 )
Net income, net of noncontrolling interests $ 14,769     $ 12,124   $ 31,513     $ 28,551  
 
Basic earnings per common share $ 0.62     $ 0.48   $ 1.32     $ 1.12  
Earnings per common share - assuming dilution $ 0.61     $ 0.47   $ 1.30     $ 1.11  
 
Basic weighted average shares outstanding   23,733       25,464     23,893       25,474  
Diluted weighted average shares outstanding   24,112       25,685     24,270       25,713  

 
 
 
Papa John's International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 
 
  June 24,   December 25,
2012 2011
(In thousands) (Unaudited) (Note)
 
Assets
Current assets:
Cash and cash equivalents $ 33,625 $ 18,942
Accounts receivable, net 27,693 28,169
Notes receivable, net 4,447 4,221
Inventories 19,695 20,091
Prepaid expenses and other current assets 13,428 13,732
Deferred income taxes   6,240   7,636
Total current assets 105,128 92,791
 
Property and equipment, net 186,567 185,132
Notes receivable, less current portion, net 10,572 11,502
Goodwill 78,342 75,085
Other assets   26,828   25,872
Total assets $ 407,437 $ 390,382
 
 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 32,379 $ 32,966
Income and other taxes payable 4,044 3,969
Accrued expenses and other current liabilities   49,666   44,198
Total current liabilities 86,089 81,133
 
Deferred revenue 8,592 4,780
Long-term debt 50,000 51,489
Other long-term liabilities 23,638 22,014
Long-term accrued income taxes 3,924 3,597
Deferred income taxes   9,648   9,147
Total liabilities 181,891 172,160
 
Total stockholders' equity   225,546   218,222
Total liabilities and stockholders' equity $ 407,437 $ 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
   
 
Six Months Ended
(In thousands) June 24, 2012   June 26, 2011
(Unaudited) (Unaudited)
 
Operating activities
Net income, including noncontrolling interests $ 34,011 $ 30,602

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

Provision for uncollectible accounts and notes receivable 719 (7 )
Depreciation and amortization 16,031 16,737
Deferred income taxes 1,946 4,332
Stock-based compensation expense 3,218 3,903
Excess tax benefit on equity awards (1,471 ) (403 )
Other 2,480 316
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (75 ) (1,167 )
Inventories 533 1,819
Prepaid expenses and other current assets 417 (246 )
Other assets and liabilities 429 816
Accounts payable (587 ) (1,970 )
Income and other taxes payable 75 325
Accrued expenses and other current liabilities 3,297 (1,611 )
Long-term accrued income taxes 327 403
Deferred revenue   3,812     (924 )
Net cash provided by operating activities 65,162 52,925
 
Investing activities
Purchase of property and equipment (15,046 ) (12,422 )
Loans issued (1,206 ) (1,684 )
Repayments of loans issued 1,730 3,920
Acquisitions, net of cash acquired (5,908 ) -
Proceeds from divestitures of restaurants 948 -
Other   (4 )   51  
Net cash used in investing activities (19,486 ) (10,135 )
 
Financing activities
Net repayments on line of credit facility (1,489 ) (51,000 )
Excess tax benefit on equity awards 1,471 403
Tax payments for restricted stock (822 ) (798 )
Proceeds from exercise of stock options 10,400 10,663
Acquisition of Company common stock (38,728 ) (26,162 )
Distributions to noncontrolling interests (1,930 ) (2,029 )
Other   125     42  
Net cash used in financing activities (30,973 ) (68,881 )
 
Effect of exchange rate changes on cash and cash equivalents   (20 )   82  
Change in cash and cash equivalents 14,683 (26,009 )
Cash and cash equivalents at beginning of period   18,942     47,829  
 
Cash and cash equivalents at end of period $ 33,625   $ 21,820  
 




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