Papa John’s Announces Fourth Quarter And Full Year 2013 Results

Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the fourth quarter and fiscal year ended December 29, 2013.

Highlights
  • System-wide comparable sales increased 9.0% for North America and 7.0% for International for the fourth quarter; System-wide comparable sales increased 4.0% for North America and 7.5% for International for the full year
  • Fourth quarter earnings per diluted common share of $0.41 increased 10.8% over 2012, or increased 32.3% when excluding the impact of the 53 rd week in 2012; Earnings per diluted common share of $1.55 for the full year increased 20.2% over earnings per diluted common share of $1.29 for 2012
  • The Company opened 132 net global restaurants for the fourth quarter and 265 for the full year, of which 183 were International and 82 were in North America

“I’d like to congratulate our operators on delivering a great year for Papa John’s, with several notable milestones and accomplishments including the opening of our 1,000 th International restaurant and continued strong growth in sales, earnings and units,” said Papa John’s founder, chairman and CEO, John Schnatter. “As we celebrate our 30 th anniversary in 2014, we expect to build upon our momentum by focusing on what got us here – growing the Papa John’s brand globally by consistently delivering a demonstrably better pizza.”

Compared to the fourth quarter of 2012, which included an additional week of operations, we reported the following results:
  • Fourth quarter 2013 revenues were $387.9 million compared to fourth quarter 2012 revenues of $367.3 million, an increase of 5.6%
  • Fourth quarter 2013 net income was $18.8 million compared to fourth quarter 2012 net income of $17.4 million, an increase of 8.3%
  • Fourth quarter 2013 diluted earnings per common share (“EPS”) were $0.41, compared to fourth quarter 2012 EPS of $0.37, an increase of 10.8%

Excluding the impact of the additional week in 2012, which provided approximately $21.5 million of additional revenues and approximately $4.1 million of additional income before income taxes, we reported the following results:
  • Fourth quarter 2013 revenues of $387.9 million represented a 12.2% increase
  • Fourth quarter 2013 net income of $18.8 million represented a 27.7% increase
  • Fourth quarter 2013 EPS of $0.41 represented a 32.3% increase

Full year 2013 revenues were $1.4 billion, a 7.2% increase from 2012 revenues of $1.3 billion, or an increase of 8.9% excluding the 53 rd week of operations in 2012. Full year 2013 net income was $69.5 million, compared to 2012 net income of $61.7 million, an increase of $7.9 million or 12.8%. Full year 2013 EPS was $1.55 compared to 2012 EPS of $1.29, an increase of 20.2%.

As noted above, results include the benefit of a 53 rd week of operations in 2012 as well as the Incentive Contribution, the impact of which is discussed in “Revenue and Operating Highlights” and “Items Impacting Comparability” below. The full year net income impact of the 53 rd week of operations in 2012 was substantially offset by the impact of the Incentive Contribution.

The company completed a two-for-one split of the company’s outstanding shares of stock in December 2013. Shareholders of record on December 12, 2013 received one additional share for every outstanding share of stock held on the record date. The stock dividend was distributed on December 27, 2013. All share and per-share amounts in this press release prior to the stock split have been adjusted.

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