Papa Johns Announces Second Quarter 2022 Financial Results; Increases Cash Dividend By 20%
Papa John's International (NASDAQ: PZZA) reported Q2 2022 revenues of $522.7 million, up 1.5% year-over-year. Excluding refranchising effects, revenue growth was 5.2%. North America comparable sales increased 0.9%, while international sales fell 8.0%. The net income was $25.4 million, down from $32.3 million the previous year, with diluted earnings per share at $0.70. A 20% dividend hike to $1.68 annually was announced. Despite challenges from inflation and a contracting UK market, management remains optimistic about long-term growth through innovation and market share expansion.
- Revenues rose 1.5% to $522.7 million in Q2 2022.
- 20% increase in annual dividend rate to $1.68 per share announced.
- 12 consecutive quarters of positive North American comparable sales.
- 47 net unit openings in Q2, maintaining 280-320 anticipated openings in 2022.
- Net income decreased to $25.4 million from $32.3 million year-over-year.
- Earnings per diluted share dropped to $0.70 from $0.93 a year ago.
- International sales decline of 8.0% attributed to weak UK economic conditions.
Highlights
-
Total revenues increased
1.5% to$522.7 million 5.2% excluding the impact of refranchising 90 restaurants in the first quarter of 2022. -
Comparable sales increased
0.9% inNorth America and decreased8.0% Internationally, lapping prior year gains of5.2% and21.2% , respectively. -
Global system-wide restaurant sales were
$1.2 billion 2.6% 1 increase over the prior year second quarter. - 47 net unit openings in the second quarter driven by International openings; expected net unit openings in 2022 remain 280 to 320 units.
-
Earnings per diluted share of
$0.70 $0.74 $0.93 -
Announced
20% increase in annual dividend rate to$1.68 $0.42
“Papa Johns delivered a 12th consecutive quarter of positive North American comparable sales in the second quarter, building on gains of more than
Lower year-over-year net income and earnings per diluted share in the second quarter primarily reflected further acceleration in commodity costs and labor inflation, in addition to lower international sales. The decrease in international sales was largely attributable to softening economic conditions in the
“Like companies across our industry and the global economy, we are experiencing high inflation coupled with lapping economic stimulus a year ago,” continued Lynch. “While we expect these headwinds to persist into the second half of 2022, the targeted actions we are taking today are focused on optimizing results in the near term, while leaning into our differentiated strategy and securing our growing market share position for the long term. When current headwinds eventually normalize, we will be in a significantly better position for long-term growth and margin accretion.”
Based on its resilient cash flow profile and strong balance sheet, the Company announced a
“The foundation of our strategy and success remains in providing better value to our customers, our franchisees and our team members. We will continue driving long-term shareholder value through winning innovations, accelerating unit growth, increasing operations productivity, and making strategic capital investments,” concluded Lynch.
______________
1 Excludes the impact of foreign currency and previously disclosed franchisee suspended restaurants.
Financial Highlights
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
Increase (Decrease) |
|
|
|
|
|
Increase (Decrease) |
||||||||||
Revenue |
|
$ |
522,665 |
|
$ |
515,008 |
|
|
$ |
7,657 |
|
|
$ |
1,065,357 |
|
$ |
1,026,754 |
|
|
$ |
38,603 |
|
Operating income |
|
$ |
38,904 |
|
$ |
44,637 |
|
|
$ |
(5,733 |
) |
|
$ |
53,339 |
|
$ |
91,499 |
|
|
$ |
(38,160 |
) |
Adjusted operating income(a) |
|
$ |
40,411 |
|
$ |
47,965 |
|
|
$ |
(7,554 |
) |
|
$ |
85,642 |
|
$ |
98,710 |
|
|
$ |
(13,068 |
) |
Net income |
|
$ |
25,433 |
|
$ |
32,254 |
|
|
$ |
(6,821 |
) |
|
$ |
35,927 |
|
$ |
66,137 |
|
|
$ |
(30,210 |
) |
Diluted (loss) earnings per share |
|
$ |
0.70 |
|
$ |
(2.30 |
) |
|
$ |
3.00 |
|
|
$ |
0.99 |
|
$ |
(1.47 |
) |
|
$ |
2.46 |
|
Adjusted diluted earnings per share(a) |
|
$ |
0.74 |
|
$ |
0.93 |
|
|
$ |
(0.19 |
) |
|
$ |
1.69 |
|
$ |
1.94 |
|
|
$ |
(0.25 |
) |
(a) Adjusted operating income and adjusted diluted earnings per share are non-GAAP measures that exclude “Special items,” which impact comparability. Please see the “Reconciliation of Non-GAAP Financial Measures” below.
Revenues
Consolidated total revenues of
For the second quarter of 2022, global system-wide restaurant sales were
Operating Results
Consolidated operating income of
Diluted earnings per share was
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
Global Restaurant Sales Information
Global restaurant and comparable sales information for the second quarter and six months ended
|
Three Months Ended |
|
Six Months Ended |
|
|
||||
|
|
|
|
|
|
|
|
|
|
Comparable sales growth (decline): |
|
|
|
|
|
|
|
|
|
|
(1.5) % |
|
5.6 % |
|
(1.3) % |
|
13.8 % |
|
|
|
1.4 % |
|
5.2 % |
|
2.1 % |
|
15.1 % |
|
|
|
0.9 % |
|
5.2 % |
|
1.4 % |
|
14.8 % |
|
|
International restaurants |
(8.0) % |
|
21.2 % |
|
(3.6) % |
|
22.2 % |
|
|
Total comparable sales growth(a) |
(1.4) % |
|
9.0 % |
|
0.1 % |
|
16.6 % |
|
|
System-wide restaurant sales growth: |
|
|
|
|
|
|
|
|
|
(excluding the impact of foreign currency) |
|
|
|
|
|
|
|
|
|
|
1.2 % |
|
5.2 % |
|
8.9 % |
|
13.1 % |
|
|
|
2.7 % |
|
6.4 % |
|
1.4 % |
|
15.8 % |
|
|
|
2.4 % |
|
6.2 % |
|
2.8 % |
|
15.2 % |
|
|
International restaurants |
3.4 % |
|
35.7 % |
|
8.3 % |
|
32.2 % |
|
|
Total global system-wide restaurant sales growth(a) |
2.6 % |
|
12.2 % |
|
4.2 % |
|
19.0 % |
|
|
(a) The three and six months periods ended
Global Restaurant Unit Data
As of
Second Quarter |
Domestic Company Owned |
|
|
|
|
|
International(a) |
|
System-wide |
|||||
Beginning - |
608 |
|
|
2,746 |
|
|
3,354 |
|
|
2,170 |
|
|
5,524 |
|
Opened |
1 |
|
|
17 |
|
|
18 |
|
|
72 |
|
|
90 |
|
Closed |
— |
|
|
(16 |
) |
|
(16 |
) |
|
(27 |
) |
|
(43 |
) |
Refranchised |
(90 |
) |
|
90 |
|
|
— |
|
|
— |
|
|
— |
|
Ending - |
519 |
|
2,837 |
|
|
3,356 |
|
2,215 |
|
|
5,571 |
|
||
Net Unit Growth |
(89 |
) |
|
91 |
|
|
2 |
|
|
45 |
|
|
47 |
|
Trailing four quarters net store growth/(decline) |
(70 |
) |
|
117 |
|
|
47 |
|
|
189 |
|
|
236 |
|
(a) Excludes franchisee suspended restaurants.
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
|
|
Six Months Ended |
||||||
|
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
45,585 |
|
|
$ |
128,030 |
|
Purchases of property and equipment |
|
|
(30,744 |
) |
|
|
(21,543 |
) |
Dividends paid to preferred shareholders (1) |
|
|
— |
|
|
|
(6,394 |
) |
Free cash flow |
|
$ |
14,841 |
|
|
$ |
100,093 |
|
(1) This does not include the cash consideration paid for the repurchase and conversion of the Series B Preferred Stock. See “Repurchase and Conversion of Series B Preferred Stock” below for additional information.
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 second quarter of 2022, the Company repurchased 452,206 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 economic environment, the financial impact of the temporary business opportunities, disruptions and temporary changes in demand we are experiencing related to the current outbreak of the coronavirus pandemic and the related restrictions, commodity and labor costs, currency fluctuations, profit margins, unit growth, unit level performance, capital expenditures, restaurant and franchise development, the duration of changes in consumer behavior caused by the pandemic, labor shortages and price increases, inflation, royalty relief, the effectiveness of our menu innovations and other business initiatives, 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.
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: our ability to manage difficulties and opportunities associated with or related to the coronavirus pandemic, including governmental restrictions, changes in consumer demand or behavior, vaccine mandates and changing governmental programs and regulations relating to the pandemic; labor shortages at company and/or franchised stores and our quality control centers; increases in labor costs, food costs or sustained higher other operating costs, including as a result of supply chain disruption, inflation or climate change; the potential for delayed new store openings, both domestically and internationally; the increased risk of phishing, ransomware and other cyber-attacks; and risks to the global economy and our business related to the conflict in
For more information about the company, please visit www.papajohns.com.
Supplemental Information and Financial Statements
Definition
“Comparable sales” represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. “Global system-wide restaurant sales” represents total restaurant sales for all company-owned and franchised stores open during the comparable periods, and “Global system-wide restaurant sales growth” represents the change in such sales year-over-year. We believe
Reconciliation of Non-GAAP Financial Measures
The table below reconciles our GAAP financial results to our adjusted financial results, which are non-GAAP measures. The non-GAAP adjusted results shown below and within this press release, which exclude the items in the table below (collectively defined as “Special items”), 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 items 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.
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
GAAP operating income |
|
$ |
38,904 |
|
|
$ |
44,637 |
|
|
$ |
53,339 |
|
|
$ |
91,499 |
|
Refranchising and impairment loss (1) |
|
|
— |
|
|
|
— |
|
|
|
25,796 |
|
|
|
— |
|
Legal settlement (2) |
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
Strategic corporate reorganization costs (3) |
|
|
— |
|
|
|
3,328 |
|
|
|
— |
|
|
|
7,211 |
|
Other costs (4) |
|
|
1,507 |
|
|
|
— |
|
|
|
1,507 |
|
|
|
— |
|
Adjusted operating income |
|
$ |
40,411 |
|
|
$ |
47,965 |
|
|
$ |
85,642 |
|
|
$ |
98,710 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income attributable to common shareholders |
|
$ |
25,240 |
|
|
$ |
(79,898 |
) |
|
$ |
35,693 |
|
|
$ |
(49,542 |
) |
Refranchising and impairment loss (1) |
|
|
— |
|
|
|
— |
|
|
|
25,796 |
|
|
|
— |
|
Legal settlement (2) |
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
Strategic corporate reorganization costs (3) |
|
|
— |
|
|
|
3,328 |
|
|
|
— |
|
|
|
7,211 |
|
Other costs (4) |
|
|
1,507 |
|
|
|
— |
|
|
|
1,507 |
|
|
|
— |
|
Repurchase and conversion of Series B Preferred Stock |
|
|
— |
|
|
|
109,852 |
|
|
|
— |
|
|
|
109,852 |
|
Tax effect of Non-GAAP adjustment on special items (4) |
|
|
(339 |
) |
|
|
(745 |
) |
|
|
(7,269 |
) |
|
|
(1,615 |
) |
Adjusted net income attributable to common shareholders |
|
$ |
26,408 |
|
|
$ |
32,537 |
|
|
$ |
60,727 |
|
|
$ |
65,906 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted earnings per common share |
|
$ |
0.70 |
|
|
$ |
(2.30 |
) |
|
$ |
0.99 |
|
|
$ |
(1.47 |
) |
Refranchising and impairment loss (1) |
|
|
— |
|
|
|
— |
|
|
|
0.72 |
|
|
|
— |
|
Legal settlement (2) |
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
|
|
— |
|
Strategic corporate reorganization costs (3) |
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.22 |
|
Other costs (4) |
|
|
0.05 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Repurchase and conversion of Series B Preferred Stock |
|
|
— |
|
|
|
3.15 |
|
|
|
— |
|
|
|
3.23 |
|
Tax effect of Non-GAAP adjustment on special items (5) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.20 |
) |
|
|
(0.04 |
) |
Adjusted diluted earnings per common share |
|
$ |
0.74 |
|
|
$ |
0.93 |
|
|
$ |
1.69 |
|
|
$ |
1.94 |
|
(Note) The above table does not include the impact of allocation of undistributed earnings to participating securities for Special items.
-
Includes on a pre-tax basis (a) a one-time, non-cash charge of
$8.4 million $0.23 $17.4 million $0.48 Ukraine and subsequent international government actions and sanctions, which were recorded as Refranchising and impairment loss of$2.8 million $14.6 million - Represents an accrual for a legal settlement, recorded in General and administrative expenses.
-
Represents strategic corporate reorganization costs associated with our new office in
Atlanta, Georgia . -
Other costs of
$1.5 million -
The tax effect for Special items was calculated by applying the marginal tax rate of
22.5% and22.4% for the three months endedJune 26, 2022 andJune 27, 2021 .
Papa John’s Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except per share amounts) |
|
|
|
|
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
52,124 |
|
|
$ |
70,610 |
|
Accounts receivable, net |
|
|
87,495 |
|
|
|
81,370 |
|
Notes receivable, current portion |
|
|
8,333 |
|
|
|
12,352 |
|
Income tax receivable |
|
|
4,017 |
|
|
|
9,386 |
|
Inventories |
|
|
38,076 |
|
|
|
34,981 |
|
Prepaid expenses and other current assets |
|
|
49,743 |
|
|
|
46,310 |
|
Total current assets |
|
|
239,788 |
|
|
|
255,009 |
|
Property and equipment, net |
|
|
225,382 |
|
|
|
223,856 |
|
Finance lease right-of-use assets, net |
|
|
18,642 |
|
|
|
20,907 |
|
Operating lease right-of-use assets |
|
|
176,719 |
|
|
|
176,256 |
|
Notes receivable, less current portion, net |
|
|
19,703 |
|
|
|
35,504 |
|
|
|
|
70,731 |
|
|
|
80,632 |
|
Deferred income taxes |
|
|
8,657 |
|
|
|
5,156 |
|
Other assets |
|
|
76,650 |
|
|
|
88,384 |
|
Total assets |
|
$ |
836,272 |
|
|
$ |
885,704 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
40,845 |
|
|
$ |
28,092 |
|
Income and other taxes payable |
|
|
16,785 |
|
|
|
19,996 |
|
Accrued expenses and other current liabilities |
|
|
146,213 |
|
|
|
190,116 |
|
Current deferred revenue |
|
|
19,925 |
|
|
|
21,700 |
|
Current finance lease liabilities |
|
|
5,224 |
|
|
|
4,977 |
|
Current operating lease liabilities |
|
|
21,485 |
|
|
|
22,543 |
|
Total current liabilities |
|
|
250,477 |
|
|
|
287,424 |
|
Deferred revenue |
|
|
23,633 |
|
|
|
13,846 |
|
Long-term finance lease liabilities |
|
|
14,252 |
|
|
|
16,580 |
|
Long-term operating lease liabilities |
|
|
164,336 |
|
|
|
160,672 |
|
Long-term debt, less current portion, net |
|
|
536,446 |
|
|
|
480,730 |
|
Deferred income taxes |
|
|
236 |
|
|
|
258 |
|
Other long-term liabilities |
|
|
79,516 |
|
|
|
93,154 |
|
Total liabilities |
|
|
1,068,896 |
|
|
|
1,052,664 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
1,174 |
|
|
|
5,498 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
491 |
|
|
|
490 |
|
Additional paid-in capital |
|
|
442,255 |
|
|
|
445,126 |
|
Accumulated other comprehensive loss |
|
|
(11,034 |
) |
|
|
(9,971 |
) |
Retained earnings |
|
|
193,934 |
|
|
|
183,157 |
|
|
|
|
(875,205 |
) |
|
|
(806,472 |
) |
Total stockholders’ deficit |
|
|
(249,559 |
) |
|
|
(187,670 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,761 |
|
|
|
15,212 |
|
Total Stockholders’ deficit |
|
|
(233,798 |
) |
|
|
(172,458 |
) |
Total liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
836,272 |
|
|
$ |
885,704 |
|
Papa John’s Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
171,411 |
|
|
$ |
196,124 |
|
|
$ |
370,176 |
|
|
$ |
393,358 |
|
|
|
|
34,917 |
|
|
|
32,475 |
|
|
|
69,185 |
|
|
|
65,190 |
|
|
|
|
219,383 |
|
|
|
186,641 |
|
|
|
429,062 |
|
|
|
371,519 |
|
International revenues |
|
|
31,958 |
|
|
|
37,614 |
|
|
|
66,575 |
|
|
|
72,221 |
|
Other revenues |
|
|
64,996 |
|
|
|
62,154 |
|
|
|
130,359 |
|
|
|
124,466 |
|
Total revenues |
|
|
522,665 |
|
|
|
515,008 |
|
|
|
1,065,357 |
|
|
|
1,026,754 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
|
|
|
142,026 |
|
|
|
154,293 |
|
|
|
303,687 |
|
|
|
310,181 |
|
|
|
|
204,470 |
|
|
|
172,227 |
|
|
|
401,560 |
|
|
|
342,911 |
|
International expenses |
|
|
19,236 |
|
|
|
21,430 |
|
|
|
39,150 |
|
|
|
41,048 |
|
Other expenses |
|
|
60,648 |
|
|
|
56,246 |
|
|
|
121,203 |
|
|
|
112,053 |
|
General and administrative expenses |
|
|
44,646 |
|
|
|
53,698 |
|
|
|
110,584 |
|
|
|
103,709 |
|
Depreciation and amortization |
|
|
12,735 |
|
|
|
12,477 |
|
|
|
24,674 |
|
|
|
25,353 |
|
Total costs and expenses |
|
|
483,761 |
|
|
|
470,371 |
|
|
|
1,000,858 |
|
|
|
935,255 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
— |
|
|
|
(11,160 |
) |
|
|
— |
|
Operating income |
|
|
38,904 |
|
|
|
44,637 |
|
|
|
53,339 |
|
|
|
91,499 |
|
Net interest expense |
|
|
(6,081 |
) |
|
|
(3,649 |
) |
|
|
(10,344 |
) |
|
|
(7,296 |
) |
Income before income taxes |
|
|
32,823 |
|
|
|
40,988 |
|
|
|
42,995 |
|
|
|
84,203 |
|
Income tax expense (benefit) |
|
|
7,093 |
|
|
|
7,398 |
|
|
|
5,838 |
|
|
|
15,330 |
|
Net income before attribution to noncontrolling interests |
|
|
25,730 |
|
|
|
33,590 |
|
|
|
37,157 |
|
|
|
68,873 |
|
Net income attributable to noncontrolling interests |
|
|
(297 |
) |
|
|
(1,336 |
) |
|
|
(1,230 |
) |
|
|
(2,736 |
) |
Net income attributable to the Company |
|
$ |
25,433 |
|
|
$ |
32,254 |
|
|
$ |
35,927 |
|
|
$ |
66,137 |
|
|
|
|
|
|
|
|
|
|
||||||||
Calculation of net income for earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company |
|
$ |
25,433 |
|
|
$ |
32,254 |
|
|
$ |
35,927 |
|
|
$ |
66,137 |
|
Dividends on redemption of Series B Convertible Preferred Stock |
|
|
— |
|
|
|
(109,852 |
) |
|
|
— |
|
|
|
(109,852 |
) |
Dividends paid to participating securities |
|
|
(82 |
) |
|
|
(2,300 |
) |
|
|
(141 |
) |
|
|
(5,827 |
) |
Net income attributable to participating securities |
|
|
(111 |
) |
|
|
— |
|
|
|
(93 |
) |
|
|
— |
|
Net income attributable to common shareholders |
|
$ |
25,240 |
|
|
$ |
(79,898 |
) |
|
$ |
35,693 |
|
|
$ |
(49,542 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
0.71 |
|
|
$ |
(2.30 |
) |
|
$ |
1.00 |
|
|
$ |
(1.47 |
) |
Diluted earnings per common share |
|
$ |
0.70 |
|
|
$ |
(2.30 |
) |
|
$ |
0.99 |
|
|
$ |
(1.47 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
35,624 |
|
|
|
34,729 |
|
|
|
35,775 |
|
|
|
33,739 |
|
Diluted weighted average common shares outstanding |
|
|
35,824 |
|
|
|
34,729 |
|
|
|
36,032 |
|
|
|
33,739 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.350 |
|
|
$ |
0.225 |
|
|
$ |
0.700 |
|
|
$ |
0.450 |
|
Papa John’s Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
(In thousands) |
|
|
|
|
||||
|
|
|
|
|
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
37,157 |
|
|
$ |
68,873 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision (benefit) for allowance for credit losses on accounts and notes receivable |
|
|
15,558 |
|
|
|
(1,200 |
) |
Depreciation and amortization |
|
|
24,674 |
|
|
|
25,353 |
|
Refranchising and impairment loss |
|
|
11,160 |
|
|
|
— |
|
Deferred income taxes |
|
|
(2,993 |
) |
|
|
(1,397 |
) |
Stock-based compensation expense |
|
|
9,100 |
|
|
|
8,202 |
|
Other |
|
|
(2,071 |
) |
|
|
467 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
(9,177 |
) |
|
|
13,299 |
|
Income tax receivable |
|
|
5,369 |
|
|
|
189 |
|
Inventories |
|
|
(3,815 |
) |
|
|
430 |
|
Prepaid expenses and other current assets |
|
|
(3,901 |
) |
|
|
1,092 |
|
Other assets and liabilities |
|
|
(5,379 |
) |
|
|
(11,380 |
) |
Accounts payable |
|
|
12,742 |
|
|
|
(5,874 |
) |
Income and other taxes payable |
|
|
(3,175 |
) |
|
|
18,500 |
|
Accrued expenses and other current liabilities |
|
|
(37,456 |
) |
|
|
12,123 |
|
Deferred revenue |
|
|
(2,208 |
) |
|
|
(647 |
) |
Net cash provided by operating activities |
|
|
45,585 |
|
|
|
128,030 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(30,744 |
) |
|
|
(21,543 |
) |
Notes issued |
|
|
(1,098 |
) |
|
|
(5,263 |
) |
Repayments of notes issued |
|
|
6,743 |
|
|
|
7,922 |
|
Acquisitions, net of cash acquired |
|
|
(1,250 |
) |
|
|
(699 |
) |
Proceeds from refranchising, net of cash transferred |
|
|
13,588 |
|
|
|
— |
|
Other |
|
|
238 |
|
|
|
116 |
|
Net cash used in investing activities |
|
|
(12,523 |
) |
|
|
(19,467 |
) |
Financing activities |
|
|
|
|
||||
Net proceeds of revolving credit facilities |
|
|
55,000 |
|
|
|
85,000 |
|
Proceeds from exercise of stock options |
|
|
1,908 |
|
|
|
8,100 |
|
Repurchase of Series B Convertible Preferred Stock |
|
|
— |
|
|
|
(188,647 |
) |
Acquisition of Company common stock |
|
|
(75,471 |
) |
|
|
(8,188 |
) |
Dividends paid to common stockholders |
|
|
(25,101 |
) |
|
|
(14,844 |
) |
Dividends paid to preferred stockholders |
|
|
— |
|
|
|
(6,394 |
) |
Tax payments for equity award issuances |
|
|
(7,526 |
) |
|
|
(3,887 |
) |
Distributions to noncontrolling interests |
|
|
(835 |
) |
|
|
(2,320 |
) |
Repayments of term loan |
|
|
— |
|
|
|
(10,000 |
) |
Other |
|
|
1,348 |
|
|
|
(1,691 |
) |
Net cash used in financing activities |
|
|
(50,677 |
) |
|
|
(142,871 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(871 |
) |
|
|
317 |
|
Change in cash and cash equivalents |
|
|
(18,486 |
) |
|
|
(33,991 |
) |
Cash and cash equivalents at beginning of period |
|
|
70,610 |
|
|
|
130,204 |
|
Cash and cash equivalents at end of period |
|
$ |
52,124 |
|
|
$ |
96,213 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006218/en/
investor_relations@papajohns.com
Source: Papa John’s
FAQ
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