Papa Johns Announces 2022 Fourth Quarter and Full Year Financial Results
Papa John's International, Inc. (NASDAQ: PZZA) reported its Q4 and full year 2022 financial results, highlighting a 3% increase in global system-wide restaurant sales to $1.20 billion in Q4 and $4.84 billion for the year. North America comparable sales rose 1%, marking the third consecutive year of growth. However, total revenues for Q4 dipped slightly to $526 million, a decrease of $3 million from 2021. Adjusted diluted EPS fell to $0.71 from $0.75 a year earlier, while full-year EPS reached $1.89 versus $0.12 in 2021. The company opened 117 units in Q4, driving a total of 244 unit openings for the year. Looking ahead, Papa John's plans to enhance customer experience through product and digital innovations.
- North America comparable sales up 1% YOY for Q4 and 30% over three years.
- Global system-wide restaurant sales increased to $4.84 billion for 2022, a 3% rise.
- 244 net unit openings for the year, indicating strong growth potential.
- Record total revenues of $2.10 billion for 2022, up 2% from 2021.
- Q4 total revenues decreased by $3 million or 0.5% from prior year.
- International comparable sales decreased by 5% YOY for full year 2022.
- Diluted EPS fell to $0.66 for Q4, down from $0.67 a year earlier.
Global system-wide restaurant sales up
Third straight year of positive
System-wide units up
Fourth Quarter Highlights
-
North America comparable sales were up1% from a year ago and up26% on a three-year stack; International comparable sales were down3% from a year ago and up20% on a three-year stack. - 117 net unit openings in the fourth quarter largely within international markets.
-
Global system-wide restaurant sales were
$1.20 billion 3% (a) increase over the prior year. -
Total revenues of
$526 million $3 million 1% , from a record fourth quarter 2021. Revenues increased3% excluding the impact of refranchising 90 restaurants in the first quarter of 2022. -
Diluted earnings per common share of
$0.66 $0.67 $0.71 $0.75
Full Year Highlights
-
North America comparable sales were up1% from a year ago and up30% on a three-year stack; International comparable sales were down5% from a year ago and up20% on a three-year stack. - 244 net unit openings(b) for the full year 2022 driven by continued international growth.
-
Global system-wide restaurant sales were
$4.84 billion 3% (a) increase over the prior year. -
Record total revenues of
$2.10 billion $34 million 2% , from 2021. -
Diluted earnings per common share of
$1.89 $0.12 $2.94 $3.51
“We had a strong finish to 2022, posting our third straight year of positive
“Looking ahead to 2023, we will continue to grow on top of the solid foundation we have built over the past three years as we deliver on our strategic priorities and build the world’s best pizza company,” added Lynch. “Investments in product and digital innovation, combined with strong operational excellence, will continue to enhance the customer experience and contribute to healthy
| ____________________________________ |
(a) Excludes the impact of foreign currency and previously disclosed franchisee suspended restaurants. |
(b) Excludes previously disclosed franchisee suspended restaurants. |
(c) Represents a non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measure. |
Financial Highlights |
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|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
(In thousands, except per share amounts) |
|
2022 |
|
2021 |
|
Increase
|
|
2022 |
|
2021 |
|
Increase
|
||||||||
Total revenues |
|
$ |
526,234 |
|
$ |
528,885 |
|
$ |
(2,651 |
) |
|
$ |
2,102,103 |
|
$ |
2,068,421 |
|
$ |
33,682 |
|
Operating income |
|
$ |
36,230 |
|
$ |
38,165 |
|
$ |
(1,935 |
) |
|
$ |
109,030 |
|
$ |
168,241 |
|
$ |
(59,211 |
) |
Adjusted operating income (a) |
|
$ |
38,226 |
|
$ |
41,895 |
|
$ |
(3,669 |
) |
|
$ |
157,462 |
|
$ |
181,335 |
|
$ |
(23,873 |
) |
Net income attributable to the Company |
|
$ |
23,514 |
|
$ |
24,623 |
|
$ |
(1,109 |
) |
|
$ |
67,772 |
|
$ |
120,016 |
|
$ |
(52,244 |
) |
Diluted earnings per common share |
|
$ |
0.66 |
|
$ |
0.67 |
|
$ |
(0.01 |
) |
|
$ |
1.89 |
|
$ |
0.12 |
|
$ |
1.77 |
|
Adjusted diluted earnings per common share (a) |
|
$ |
0.71 |
|
$ |
0.75 |
|
$ |
(0.04 |
) |
|
$ |
2.94 |
|
$ |
3.51 |
|
$ |
(0.57 |
) |
Quarterly Results
Total revenues of
For the fourth quarter of 2022, global system-wide restaurant sales were
Operating income of
____________________________________ |
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measures. |
Diluted earnings per common share was
Full Year Results
Total revenues of
Operating income of
Diluted earnings per common share was
See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K filed with the
____________________________________ |
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measures. |
Global Restaurant Sales Information
Global restaurant and comparable sales information for the fourth quarter and year ended
|
Three Months Ended |
|
Year ended |
||||
Amounts below exclude the impact of foreign currency |
|
|
|
|
|
|
|
Comparable sales growth (decline): |
|
|
|
|
|
|
|
|
|
|
|
|
(1.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International restaurants |
(3.4)% |
|
|
|
(5.3)% |
|
|
Total comparable sales growth (decline) |
|
|
|
|
(0.8)% |
|
|
System-wide restaurant sales growth: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International restaurants (a) |
|
|
|
|
|
|
|
Total global system-wide restaurant sales growth (a) |
|
|
|
|
|
|
|
(a) The three and twelve months ended |
|||||||
Global Restaurant Unit Data
As of
Fourth Quarter |
Domestic
|
|
Franchised
|
|
Total North
|
|
International(a) |
|
System-wide |
||||
Beginning - |
522 |
|
2,836 |
|
|
3,358 |
|
|
2,231 |
|
|
5,589 |
|
Opened |
— |
|
28 |
|
|
28 |
|
|
117 |
|
|
145 |
|
Closed |
— |
|
(10 |
) |
|
(10 |
) |
|
(18 |
) |
|
(28 |
) |
Ending - |
522 |
|
2,854 |
|
|
3,376 |
|
|
2,330 |
|
|
5,706 |
|
Net unit growth |
— |
|
18 |
|
|
18 |
|
|
99 |
|
|
117 |
|
Full year |
Domestic
|
|
Franchised
|
|
Total North
|
|
International(a) |
|
System-wide |
|||||
Beginning - |
600 |
|
|
2,739 |
|
|
3,339 |
|
|
2,311 |
|
|
5,650 |
|
Opened |
10 |
|
|
76 |
|
|
86 |
|
|
292 |
|
|
378 |
|
Closed |
— |
|
|
(49 |
) |
|
(49 |
) |
|
(85 |
) |
|
(134 |
) |
Sold |
— |
|
|
(2 |
) |
|
(2 |
) |
|
— |
|
|
(2 |
) |
Acquired |
2 |
|
|
— |
|
|
2 |
|
|
— |
|
|
2 |
|
Refranchised |
(90 |
) |
|
90 |
|
|
— |
|
|
— |
|
|
— |
|
Suspended (a) |
— |
|
|
— |
|
|
— |
|
|
(188 |
) |
|
(188 |
) |
Ending - |
522 |
|
2,854 |
|
|
3,376 |
|
2,330 |
|
|
5,706 |
|
||
Net unit growth/(decline) (a) |
(78 |
) |
|
115 |
|
|
37 |
|
|
207 |
|
|
244 |
|
(a) As previously disclosed, the Company has suspended corporate support for all franchised restaurants located in |
Free Cash Flow
Free cash flow, a non-GAAP financial measure which the Company defines as net cash provided by operating activities, less purchases of property and equipment and dividends paid to preferred shareholders, was
|
|
Year Ended |
||||||
(in thousands) |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
117,808 |
|
|
$ |
184,675 |
|
Purchases of property and equipment |
|
|
(78,391 |
) |
|
|
(68,559 |
) |
Dividends paid to preferred shareholders (a) |
|
|
— |
|
|
|
(6,394 |
) |
Free cash flow |
|
$ |
39,417 |
|
|
$ |
109,722 |
|
(a) Excludes cash consideration paid for the repurchase and conversion of the Company’s former Series B Convertible Preferred Stock (“Series B Preferred Stock”) in 2021. |
||||||||
We view free cash flow as an important financial 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.
Cash Dividend and Share Repurchases
The Company paid cash dividends of
During the fourth quarter of 2022, the Company repurchased 361,000 shares of common stock for
Conference Call
About
Papa John’s
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,” “outlook,” “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, share repurchases, the current economic environment, the continuing impact of the coronavirus pandemic, commodity and labor costs, currency fluctuations, profit margins, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, labor shortages and price increases, inflation, royalty relief, franchisee support, the effectiveness of our menu innovations and other business initiatives, investments in product and digital innovation, marketing efforts, liquidity, compliance with debt covenants, impairments, 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.
Our forward-looking statements are based on our assumptions which are based on currently available information. Actual outcomes and results may differ materially from those matters expressed or implied in our forward-looking statements as a result of various factors, including but not limited to risks related to: deteriorating economic conditions in the
For more information about the company, please visit www.papajohns.com.
Supplemental Information and Financial Statements
Definitions
“Comparable sales” represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales excludes sales of restaurants that were not open during both the current and prior fiscal periods and franchisees for which we suspended corporate support. “Global system-wide restaurant sales” represents total restaurant sales for all Company-owned and franchised restaurants open during the comparable periods, and “Global system-wide restaurant sales growth (decline)” represents the change in total system restaurant sales year-over-year. Global system-wide restaurant sales and global system-wide sales growth (decline) exclude franchisees for which we suspended corporate support.
“Equivalent units” represents the number of restaurants open at the beginning of a given period, adjusted for restaurants opened, closed, acquired or sold during the period on a weighted average basis.
We believe
Non-GAAP Measures
In addition to the results provided in accordance with
|
|
Three months ended |
|
Year Ended |
||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
36,230 |
|
|
$ |
38,165 |
|
|
$ |
109,030 |
|
|
$ |
168,241 |
|
Refranchising and impairment losses (a) |
|
|
— |
|
|
|
— |
|
|
|
26,702 |
|
|
|
— |
|
Legal settlements (b) |
|
|
— |
|
|
|
— |
|
|
|
15,000 |
|
|
|
— |
|
Costs associated with the termination of significant franchisees (c) |
|
|
1,996 |
|
|
|
— |
|
|
|
5,223 |
|
|
|
— |
|
Strategic corporate reorganization costs (d) |
|
|
— |
|
|
|
3,730 |
|
|
|
— |
|
|
|
13,094 |
|
Other costs (e) |
|
|
— |
|
|
|
— |
|
|
|
1,507 |
|
|
|
— |
|
Adjusted operating income |
|
$ |
38,226 |
|
|
$ |
41,895 |
|
|
$ |
157,462 |
|
|
$ |
181,335 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
23,373 |
|
|
$ |
24,389 |
|
|
$ |
67,362 |
|
|
$ |
4,073 |
|
Refranchising and impairment losses (a) |
|
|
— |
|
|
|
— |
|
|
|
26,702 |
|
|
|
— |
|
Legal settlements (b) |
|
|
— |
|
|
|
— |
|
|
|
15,000 |
|
|
|
— |
|
Costs associated with the termination of significant franchisees (c) |
|
|
1,996 |
|
|
|
— |
|
|
|
5,223 |
|
|
|
— |
|
Strategic corporate reorganization costs (d) |
|
|
— |
|
|
|
3,730 |
|
|
|
— |
|
|
|
13,094 |
|
Other costs (e) |
|
|
— |
|
|
|
— |
|
|
|
1,507 |
|
|
|
— |
|
Repurchase and conversion of Series B Preferred Stock (f) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,852 |
|
Tax effect of adjustments (g) |
|
|
(449 |
) |
|
|
(839 |
) |
|
|
(10,897 |
) |
|
|
(2,946 |
) |
Adjusted net income attributable to common shareholders (h) |
|
$ |
24,920 |
|
|
$ |
27,280 |
|
|
$ |
104,897 |
|
|
$ |
124,073 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
|
$ |
0.66 |
|
|
$ |
0.67 |
|
|
$ |
1.89 |
|
|
$ |
0.12 |
|
Refranchising and impairment losses (a) |
|
|
— |
|
|
|
— |
|
|
|
0.75 |
|
|
|
— |
|
Legal settlements (b) |
|
|
— |
|
|
|
— |
|
|
|
0.42 |
|
|
|
— |
|
Costs associated with the termination of significant franchisees (c) |
|
|
0.07 |
|
|
|
— |
|
|
|
0.15 |
|
|
|
— |
|
Strategic corporate reorganization costs (d) |
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.37 |
|
Other costs (e) |
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Repurchase and conversion of Series B Preferred Stock (f) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.10 |
|
Tax effect of adjustments (g) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.31 |
) |
|
|
(0.08 |
) |
Adjusted diluted earnings per common share (h) |
|
$ |
0.71 |
|
|
$ |
0.75 |
|
|
$ |
2.94 |
|
|
$ |
3.51 |
|
See footnotes on following page |
||||||||||||||||
Footnotes to Non-GAAP Financial Measures
(a) Refranchising and impairments losses consisted of the following pre-tax adjustments: |
|||
|
|
Year Ended |
|
(In thousands) |
|
|
|
Refranchising impairment loss (1) |
|
$ |
8,412 |
|
|
|
17,385 |
|
|
|
905 |
Total adjustment |
|
$ |
26,702 |
(1) |
Represents a one-time, non-cash charge of |
|||
(2) |
Represents a one-time non-cash charge of |
|||
(3) |
An impairment charge of |
(b) Represents an accrual of certain legal settlements, recorded in General and administrative expenses. |
|
(c) Represents costs associated with the termination of significant franchisees in the |
|
(d) Represents strategic corporate reorganization costs associated with our new corporate office in |
|
(e) Represents advisory fees and severance costs associated with the transition of certain executives. |
|
(f) Represents the one-time charge related to the repurchase and conversion of all shares of Series B Preferred Stock and includes related professional fees incurred as part of the transaction. |
|
(g) The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rate of |
|
(h) Amounts shown exclude the impact of allocation of undistributed earnings to participating securities. |
Papa John’s Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except per share amounts) |
|
|
|
|
||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
47,373 |
|
|
$ |
70,610 |
|
Accounts receivable (less allowance for credit losses of |
|
|
102,533 |
|
|
|
81,370 |
|
Notes receivable, current portion |
|
|
6,848 |
|
|
|
12,352 |
|
Income tax receivable |
|
|
8,780 |
|
|
|
9,386 |
|
Inventories |
|
|
41,382 |
|
|
|
34,981 |
|
Prepaid expenses and other current assets |
|
|
44,123 |
|
|
|
46,310 |
|
Total current assets |
|
|
251,039 |
|
|
|
255,009 |
|
Property and equipment, net |
|
|
249,793 |
|
|
|
223,856 |
|
Finance lease right-of-use assets, net |
|
|
24,941 |
|
|
|
20,907 |
|
Operating lease right-of-use assets |
|
|
172,425 |
|
|
|
176,256 |
|
Notes receivable, less current portion (less allowance for credit losses of |
|
|
21,248 |
|
|
|
35,504 |
|
|
|
|
70,616 |
|
|
|
80,632 |
|
Deferred income taxes |
|
|
1,920 |
|
|
|
5,156 |
|
Other assets |
|
|
72,245 |
|
|
|
88,384 |
|
Total assets |
|
$ |
864,227 |
|
|
$ |
885,704 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
62,316 |
|
|
$ |
28,092 |
|
Income and other taxes payable |
|
|
8,766 |
|
|
|
19,996 |
|
Accrued expenses and other current liabilities |
|
|
142,535 |
|
|
|
190,116 |
|
Current deferred revenue |
|
|
21,272 |
|
|
|
21,700 |
|
Current finance lease liabilities |
|
|
6,850 |
|
|
|
4,977 |
|
Current operating lease liabilities |
|
|
23,418 |
|
|
|
22,543 |
|
Total current liabilities |
|
|
265,157 |
|
|
|
287,424 |
|
Deferred revenue |
|
|
23,204 |
|
|
|
13,846 |
|
Long-term finance lease liabilities |
|
|
19,022 |
|
|
|
16,580 |
|
Long-term operating lease liabilities |
|
|
160,905 |
|
|
|
160,672 |
|
Long-term debt, net |
|
|
597,069 |
|
|
|
480,730 |
|
Deferred income taxes |
|
|
— |
|
|
|
258 |
|
Other long-term liabilities |
|
|
68,317 |
|
|
|
93,154 |
|
Total liabilities |
|
|
1,133,674 |
|
|
|
1,052,664 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
1,217 |
|
|
|
5,498 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
491 |
|
|
|
490 |
|
Additional paid-in capital |
|
|
449,829 |
|
|
|
445,126 |
|
Accumulated other comprehensive loss |
|
|
(10,135 |
) |
|
|
(9,971 |
) |
Retained earnings |
|
|
195,856 |
|
|
|
183,157 |
|
|
|
|
(922,434 |
) |
|
|
(806,472 |
) |
Total stockholders’ deficit |
|
|
(286,393 |
) |
|
|
(187,670 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,729 |
|
|
|
15,212 |
|
Total Stockholders’ deficit |
|
|
(270,664 |
) |
|
|
(172,458 |
) |
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
864,227 |
|
|
$ |
885,704 |
|
Papa John’s Condensed Consolidated Statements of Operations |
||||||||||||||||
|
|
Three Months Ended |
|
Year ended |
||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
172,163 |
|
|
$ |
193,381 |
|
|
$ |
708,389 |
|
|
$ |
778,323 |
|
|
|
|
34,502 |
|
|
|
32,187 |
|
|
|
137,399 |
|
|
|
129,310 |
|
|
|
|
224,457 |
|
|
|
200,562 |
|
|
|
869,634 |
|
|
|
761,305 |
|
International revenues |
|
|
32,593 |
|
|
|
40,142 |
|
|
|
129,903 |
|
|
|
150,771 |
|
Other revenues |
|
|
62,519 |
|
|
|
62,613 |
|
|
|
256,778 |
|
|
|
248,712 |
|
Total revenues |
|
|
526,234 |
|
|
|
528,885 |
|
|
|
2,102,103 |
|
|
|
2,068,421 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
|
|
|
143,321 |
|
|
|
156,213 |
|
|
|
585,307 |
|
|
|
621,871 |
|
|
|
|
206,757 |
|
|
|
185,312 |
|
|
|
811,446 |
|
|
|
703,622 |
|
International expenses |
|
|
18,655 |
|
|
|
24,495 |
|
|
|
76,001 |
|
|
|
87,286 |
|
Other expenses |
|
|
58,358 |
|
|
|
58,228 |
|
|
|
238,810 |
|
|
|
226,320 |
|
General and administrative expenses |
|
|
48,893 |
|
|
|
54,486 |
|
|
|
217,412 |
|
|
|
212,265 |
|
Depreciation and amortization |
|
|
14,020 |
|
|
|
11,986 |
|
|
|
52,032 |
|
|
|
48,816 |
|
Total costs and expenses |
|
|
490,004 |
|
|
|
490,720 |
|
|
|
1,981,008 |
|
|
|
1,900,180 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
— |
|
|
|
(12,065 |
) |
|
|
— |
|
Operating income |
|
|
36,230 |
|
|
|
38,165 |
|
|
|
109,030 |
|
|
|
168,241 |
|
Net interest expense |
|
|
(7,294 |
) |
|
|
(6,018 |
) |
|
|
(25,261 |
) |
|
|
(17,293 |
) |
Income before income taxes |
|
|
28,936 |
|
|
|
32,147 |
|
|
|
83,769 |
|
|
|
150,948 |
|
Income tax expense |
|
|
5,208 |
|
|
|
6,606 |
|
|
|
14,420 |
|
|
|
25,993 |
|
Net income before attribution to noncontrolling interests |
|
|
23,728 |
|
|
|
25,541 |
|
|
|
69,349 |
|
|
|
124,955 |
|
Net income attributable to noncontrolling interests |
|
|
(214 |
) |
|
|
(918 |
) |
|
|
(1,577 |
) |
|
|
(4,939 |
) |
Net income attributable to the Company |
|
$ |
23,514 |
|
|
$ |
24,623 |
|
|
$ |
67,772 |
|
|
$ |
120,016 |
|
|
|
|
|
|
|
|
|
|
||||||||
Calculation of net income for earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company |
|
$ |
23,514 |
|
|
$ |
24,623 |
|
|
$ |
67,772 |
|
|
$ |
120,016 |
|
Dividends on redemption of Series B Convertible Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(109,852 |
) |
Dividends paid to participating securities |
|
|
(78 |
) |
|
|
(127 |
) |
|
|
(306 |
) |
|
|
(6,091 |
) |
Net income attributable to participating securities |
|
|
(63 |
) |
|
|
(107 |
) |
|
|
(104 |
) |
|
|
— |
|
Net income attributable to common shareholders |
|
$ |
23,373 |
|
|
$ |
24,389 |
|
|
$ |
67,362 |
|
|
$ |
4,073 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
0.66 |
|
|
$ |
0.67 |
|
|
$ |
1.90 |
|
|
$ |
0.12 |
|
Diluted earnings per common share |
|
$ |
0.66 |
|
|
$ |
0.67 |
|
|
$ |
1.89 |
|
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
35,167 |
|
|
|
36,171 |
|
|
|
35,497 |
|
|
|
35,007 |
|
Diluted weighted average common shares outstanding |
|
|
35,336 |
|
|
|
36,513 |
|
|
|
35,717 |
|
|
|
35,337 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
1.54 |
|
|
$ |
1.15 |
|
Papa John’s Condensed Consolidated Statements of Cash Flows |
||||||||
|
|
Year ended |
||||||
(In thousands) |
|
|
|
|
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
69,349 |
|
|
$ |
124,955 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision (benefit) for allowance for credit losses on accounts and notes receivable |
|
|
20,539 |
|
|
|
(852 |
) |
Depreciation and amortization |
|
|
52,032 |
|
|
|
48,816 |
|
Refranchising and impairment loss |
|
|
12,065 |
|
|
|
— |
|
Deferred income taxes |
|
|
2,798 |
|
|
|
3,753 |
|
Stock-based compensation expense |
|
|
18,388 |
|
|
|
16,919 |
|
Other |
|
|
1,056 |
|
|
|
581 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
(29,167 |
) |
|
|
4,023 |
|
Income tax receivable |
|
|
586 |
|
|
|
(8,113 |
) |
Inventories |
|
|
(7,496 |
) |
|
|
(4,708 |
) |
Prepaid expenses and other current assets |
|
|
5,587 |
|
|
|
2,866 |
|
Other assets and liabilities |
|
|
(13,458 |
) |
|
|
(20,077 |
) |
Accounts payable |
|
|
(8,350 |
) |
|
|
(9,278 |
) |
Income and other taxes payable |
|
|
(10,710 |
) |
|
|
9,733 |
|
Accrued expenses and other current liabilities |
|
|
4,846 |
|
|
|
15,875 |
|
Deferred revenue |
|
|
(257 |
) |
|
|
182 |
|
Net cash provided by operating activities |
|
|
117,808 |
|
|
|
184,675 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(78,391 |
) |
|
|
(68,559 |
) |
Notes issued |
|
|
(9,296 |
) |
|
|
(16,132 |
) |
Repayments of notes issued |
|
|
13,045 |
|
|
|
18,555 |
|
Acquisitions, net of cash acquired |
|
|
(1,219 |
) |
|
|
(699 |
) |
Proceeds from refranchising, net of cash transferred |
|
|
13,588 |
|
|
|
— |
|
Other |
|
|
(520 |
) |
|
|
3,323 |
|
Net cash used in investing activities |
|
|
(62,793 |
) |
|
|
(63,512 |
) |
Financing activities |
|
|
|
|
||||
Proceeds from issuance of senior notes |
|
|
— |
|
|
|
400,000 |
|
Net proceeds of revolving credit facilities |
|
|
115,000 |
|
|
|
80,000 |
|
Debt issuance costs |
|
|
— |
|
|
|
(9,179 |
) |
Proceeds from exercise of stock options |
|
|
4,036 |
|
|
|
11,969 |
|
Repurchase of Series B Convertible Preferred Stock |
|
|
— |
|
|
|
(188,647 |
) |
Acquisition of Company common stock |
|
|
(125,000 |
) |
|
|
(72,499 |
) |
Dividends paid to common stockholders |
|
|
(54,767 |
) |
|
|
(40,356 |
) |
Dividends paid to preferred stockholders |
|
|
— |
|
|
|
(6,394 |
) |
Tax payments for equity award issuances |
|
|
(9,546 |
) |
|
|
(5,847 |
) |
Distributions to noncontrolling interests |
|
|
(1,211 |
) |
|
|
(5,942 |
) |
Repayments of term loan |
|
|
— |
|
|
|
(340,000 |
) |
Other |
|
|
(4,752 |
) |
|
|
(3,631 |
) |
Net cash used in financing activities |
|
|
(76,240 |
) |
|
|
(180,526 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(2,012 |
) |
|
|
(231 |
) |
Change in cash and cash equivalents |
|
|
(23,237 |
) |
|
|
(59,594 |
) |
Cash and cash equivalents at beginning of period |
|
|
70,610 |
|
|
|
130,204 |
|
Cash and cash equivalents at end of period |
|
$ |
47,373 |
|
|
$ |
70,610 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230221005931/en/
investor_relations@papajohns.com
Source: Papa John’s
FAQ
What were Papa John's Q4 2022 financial results?
How did Papa John's perform in 2022 compared to 2021?
What are the future plans for Papa John's?
What is the current status of Papa John's international sales?
What is the 2022 diluted earnings per share for Papa John's?
