Papa Johns Announces Second Quarter 2023 Financial Results; Increases Cash Dividend by 10%
- Positive momentum in third quarter with improved sales and profitability
- Global system-wide restaurant sales increased by 2%
- Announced 10% increase in annual dividend rate to $1.84 per share
- North America and international comparable sales down 1%
- Total revenues of $515 million were down 2% from the second quarter a year ago
Highlights
-
North America comparable sales were down1% compared with the second quarter of 2022 as the strength of Domestic Company-owned restaurants was offset by lowerNorth America franchised restaurant comparable sales; International comparable sales were down1% from a year ago and improved5% from the first quarter. - 47 net unit openings in the second quarter driven by International growth; On track to achieve 270 to 310 net new units in 2023.
-
Global system-wide restaurant sales were
$1.22 billion 2% (a) increase from the prior year second quarter. -
Total revenues of
$515 million 2% from the second quarter a year ago driven by lower revenues in our North American commissary segment due to commodity price declines. -
Diluted earnings per common share was
$0.54 $0.70 $0.59 $0.74 -
Announced
10% increase in annual dividend rate to$1.84 $0.46
“We are pleased with the solid execution that our teams have demonstrated in what continues to be a challenging operating environment,” said Rob Lynch, President and CEO. “Our company restaurants continued their strong performance with positive comp sales growth and year-over-year margin improvement above and beyond the benefits of moderating food costs. However, this solid performance was not enough to offset the lower-than-anticipated comps our franchisees experienced during the quarter. That being said, our entire system saw sequential sales improvement throughout the quarter with positive
Commenting on the Company’s International operations, Lynch stated, “Our international business is a long-term growth driver for Papa Johns. We’ve recently established a corporate-owned restaurant portfolio in the
Lynch concluded by stating, “The level of operating and fiscal discipline our team has implemented across our business over the past year is remarkable. Our continued investments in sales-driving capabilities and operational excellence, combined with the strength of our balance sheet, gives us confidence that we will produce positive comp sales and attractive new unit development growth in the back half of 2023 and over the long-term.”
| ____________________________________________________ | ||
(a) |
Excludes the impact of foreign currency. |
|
(b) |
Represents a non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measure. |
|
Financial Highlights
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
(In thousands, except per share amounts) |
|
June 25,
|
|
June 26,
|
|
Increase (Decrease) |
|
June 25,
|
|
June 26,
|
|
Increase (Decrease) |
||||||||
Total revenues |
|
$ |
514,530 |
|
$ |
522,665 |
|
$ |
(8,135 |
) |
|
$ |
1,041,579 |
|
$ |
1,065,357 |
|
$ |
(23,778 |
) |
Operating income |
|
$ |
34,912 |
|
$ |
38,904 |
|
$ |
(3,992 |
) |
|
$ |
72,708 |
|
$ |
53,339 |
|
$ |
19,369 |
|
Adjusted operating income (a) |
|
$ |
36,881 |
|
$ |
40,411 |
|
$ |
(3,530 |
) |
|
$ |
76,033 |
|
$ |
85,642 |
|
$ |
(9,609 |
) |
Net income attributable to the Company |
|
$ |
17,768 |
|
$ |
25,433 |
|
$ |
(7,665 |
) |
|
$ |
40,144 |
|
$ |
35,927 |
|
$ |
4,217 |
|
Diluted earnings per common share |
|
$ |
0.54 |
|
$ |
0.70 |
|
$ |
(0.16 |
) |
|
$ |
1.20 |
|
$ |
0.99 |
|
$ |
0.21 |
|
Adjusted diluted earnings per common share (a) |
|
$ |
0.59 |
|
$ |
0.74 |
|
$ |
(0.15 |
) |
|
$ |
1.28 |
|
$ |
1.69 |
|
$ |
(0.41 |
) |
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measures. |
||||||||||||||||||||
In the second quarter of 2023, the Company completed the purchase of 91 formerly franchised restaurants in the
Total revenues of
For the second quarter of 2023, global system-wide restaurant sales were
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 Quarterly Report on Form 10-Q filed with the SEC for additional information concerning our operating results for the three and six months ended June 25, 2023.
Global Restaurant Sales Information
Global restaurant and comparable sales information for the second quarter and six months ended June 25, 2023, compared with the second quarter and six months ended June 26, 2022 are as follows (See “Supplemental Information and Financial Statements” below for related definitions):
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
Amounts below exclude the impact of foreign currency |
|
June 25,
|
|
June 26,
|
|
June 25,
|
|
June 26,
|
||||
Comparable sales growth (decline): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
2.2 |
% |
|
(1.5 |
)% |
|
2.8 |
% |
|
(1.3 |
)% |
|
|
(2.3 |
)% |
|
1.4 |
% |
|
(1.6 |
)% |
|
2.1 |
% |
|
|
(1.4 |
)% |
|
0.9 |
% |
|
(0.7 |
)% |
|
1.4 |
% |
International restaurants |
|
(0.7 |
)% |
|
(8.0 |
)% |
|
(3.3 |
)% |
|
(3.6 |
)% |
Total comparable sales growth (decline) |
|
(1.3 |
)% |
|
(1.4 |
)% |
|
(1.3 |
)% |
|
0.1 |
% |
System-wide restaurant sales growth (decline): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
2.5 |
% |
|
1.2 |
% |
|
3.7 |
% |
|
8.9 |
% |
|
|
(0.6 |
)% |
|
2.7 |
% |
|
0.1 |
% |
|
1.4 |
% |
|
|
— |
% |
|
2.4 |
% |
|
0.8 |
% |
|
2.8 |
% |
International restaurants (a) |
|
8.6 |
% |
|
3.4 |
% |
|
5.8 |
% |
|
8.3 |
% |
Total global system-wide restaurant sales growth (decline) |
|
2.0 |
% |
|
2.6 |
% |
|
2.0 |
% |
|
4.2 |
% |
(a) The six months ended June 25, 2023 and June 26, 2022 exclude the impact of franchisee suspended restaurants. |
||||||||||||
Global Restaurant Unit Data
As of June 25, 2023, there were 5,780 Papa Johns restaurants operating in 48 countries and territories, as follows:
Second Quarter |
Domestic Company Owned |
|
Franchised |
|
Total |
|
International Company Owned |
|
International Franchised |
|
Total International |
|
System-wide |
|||||
Beginning - March 26, 2023 |
520 |
|
2,864 |
|
|
3,384 |
|
|
— |
|
2,349 |
|
|
2,349 |
|
|
5,733 |
|
Opened |
— |
|
13 |
|
|
13 |
|
|
— |
|
55 |
|
|
55 |
|
|
68 |
|
Closed |
— |
|
(8 |
) |
|
(8 |
) |
|
— |
|
(13 |
) |
|
(13 |
) |
|
(21 |
) |
Acquired |
1 |
|
— |
|
|
1 |
|
|
91 |
|
— |
|
|
91 |
|
|
92 |
|
Sold |
— |
|
(1 |
) |
|
(1 |
) |
|
— |
|
(91 |
) |
|
(91 |
) |
|
(92 |
) |
Ending - June 25, 2023 |
521 |
|
2,868 |
|
|
3,389 |
|
|
91 |
|
2,300 |
|
|
2,391 |
|
|
5,780 |
|
Net Unit Growth |
1 |
|
4 |
|
|
5 |
|
|
91 |
|
(49 |
) |
|
42 |
|
|
47 |
|
Trailing four quarters net store growth/(decline) |
1 |
|
32 |
|
|
33 |
|
|
91 |
|
85 |
|
|
176 |
|
|
209 |
|
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, was
|
|
Six Months Ended |
||||||
(in thousands) |
|
June 25,
|
|
June 26,
|
||||
Net cash provided by operating activities |
|
$ |
93,735 |
|
|
$ |
45,585 |
|
Purchases of property and equipment |
|
|
(34,759 |
) |
|
|
(30,744 |
) |
Free cash flow |
|
$ |
58,976 |
|
|
$ |
14,841 |
|
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
The Company paid cash dividends of
Conference Call
Papa Johns will host a call with analysts today, August 3, 2023, at 8:00 a.m. Eastern Time. To access the conference call or webcast, please register online at: ir.papajohns.com/events-presentations. A replay of the webcast will be available two hours after the call and archived on the same web page.
About Papa Johns
Papa John’s International, Inc. (NASDAQ: PZZA) opened its doors in 1984 with one goal in mind: BETTER INGREDIENTS. BETTER PIZZA.® Papa Johns believes that using high-quality ingredients leads to superior quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa Johns tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa Johns is co-headquartered in
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, commodity and labor costs, currency fluctuations, profit margins, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, labor shortages, labor cost increases, inflation, royalty relief, franchisee support, the effectiveness of our menu innovations and other business initiatives, investments in product and digital innovation, marketing efforts and investments, liquidity, compliance with debt covenants, impairments, strategic decisions and actions, dividends, effective tax rates, regulatory changes and impacts, investments in the
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 sales for the same base of restaurants for the same fiscal periods. “Comparable sales growth (decline)” represents the change in year-over-year comparable sales. “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 global system-wide restaurant sales year-over-year. Comparable sales, Comparable sales growth (decline), 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 Domestic Company-owned,
Non-GAAP Measures
In addition to the results provided in accordance with
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
June 25,
|
|
June 26,
|
|
June 25,
|
|
June 26,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
34,912 |
|
|
$ |
38,904 |
|
|
$ |
72,708 |
|
|
$ |
53,339 |
|
|
|
|
1,308 |
|
|
|
— |
|
|
|
1,308 |
|
|
|
— |
|
Refranchising and impairment losses (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,796 |
|
Legal settlement (c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
Other costs (d) |
|
|
661 |
|
|
|
1,507 |
|
|
|
2,017 |
|
|
|
1,507 |
|
Adjusted operating income |
|
$ |
36,881 |
|
|
$ |
40,411 |
|
|
$ |
76,033 |
|
|
$ |
85,642 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
17,768 |
|
|
$ |
25,240 |
|
|
$ |
40,144 |
|
|
$ |
35,693 |
|
|
|
|
1,308 |
|
|
|
— |
|
|
|
1,308 |
|
|
|
— |
|
Refranchising and impairment losses (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,796 |
|
Legal settlement (c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
Other costs (d) |
|
|
661 |
|
|
|
1,507 |
|
|
|
2,017 |
|
|
|
1,507 |
|
Tax effect of adjustments (e) |
|
|
(449 |
) |
|
|
(339 |
) |
|
|
(758 |
) |
|
|
(7,269 |
) |
Adjusted net income attributable to common shareholders (f) |
|
$ |
19,288 |
|
|
$ |
26,408 |
|
|
$ |
42,711 |
|
|
$ |
60,727 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
|
$ |
0.54 |
|
|
$ |
0.70 |
|
|
$ |
1.20 |
|
|
$ |
0.99 |
|
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Refranchising and impairment losses (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.72 |
|
Legal settlement (c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
Other costs (d) |
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.06 |
|
|
|
0.04 |
|
Tax effect of adjustments (e) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.20 |
) |
Adjusted diluted earnings per common share (f) |
|
$ |
0.59 |
|
|
$ |
0.74 |
|
|
$ |
1.28 |
|
|
$ |
1.69 |
|
Footnotes to Non-GAAP Financial Measures
| (a) |
Represents costs associated with repositioning the |
||
(b) |
Refranchising and impairment losses consisted of the following pre-tax adjustments: |
||
|
Six Months Ended |
||
(In thousands) |
June 26,
|
||
Refranchising impairment loss (1) |
$ |
8,412 |
|
|
|
17,384 |
|
Total adjustment |
$ |
25,796 |
|
|
(1) |
Represents a one-time, non-cash charge of |
|
|
(2) |
Represents a one-time non-cash charge of |
|
(c) |
Represents an accrual of a certain legal settlement, recorded in General and administrative expenses. | ||
(d) |
Represents severance and related costs associated with the transition of certain executives incurred during the three and six-month periods ended June 25, 2023 and June 26, 2022, which were recorded in General and administrative expenses. | ||
(e) |
The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rates of |
||
| (f) | Amounts shown exclude the impact of allocation of undistributed earnings to participating securities. | ||
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except per share amounts) |
|
June 25,
|
|
December 25,
|
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
43,772 |
|
|
$ |
47,373 |
|
Accounts receivable, net |
|
|
94,255 |
|
|
|
102,533 |
|
Notes receivable, current portion |
|
|
4,850 |
|
|
|
6,848 |
|
Income tax receivable |
|
|
2,097 |
|
|
|
8,780 |
|
Inventories |
|
|
37,515 |
|
|
|
41,382 |
|
Prepaid expenses and other current assets |
|
|
56,086 |
|
|
|
44,123 |
|
Assets held for sale (a) |
|
|
3,427 |
|
|
|
— |
|
Total current assets |
|
|
242,002 |
|
|
|
251,039 |
|
Property and equipment, net |
|
|
264,393 |
|
|
|
249,793 |
|
Finance lease right-of-use assets, net |
|
|
34,418 |
|
|
|
24,941 |
|
Operating lease right-of-use assets |
|
|
171,550 |
|
|
|
172,425 |
|
Notes receivable, less current portion, net |
|
|
15,809 |
|
|
|
21,248 |
|
Goodwill |
|
|
76,623 |
|
|
|
70,616 |
|
Other assets |
|
|
68,848 |
|
|
|
74,165 |
|
Total assets |
|
$ |
873,643 |
|
|
$ |
864,227 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
55,351 |
|
|
$ |
62,316 |
|
Income and other taxes payable |
|
|
8,148 |
|
|
|
8,766 |
|
Accrued expenses and other current liabilities |
|
|
163,273 |
|
|
|
142,535 |
|
Current deferred revenue |
|
|
19,587 |
|
|
|
21,272 |
|
Current finance lease liabilities |
|
|
9,190 |
|
|
|
6,850 |
|
Current operating lease liabilities |
|
|
25,715 |
|
|
|
23,418 |
|
Current portion of long-term debt |
|
|
15,529 |
|
|
|
— |
|
Total current liabilities |
|
|
296,793 |
|
|
|
265,157 |
|
Deferred revenue |
|
|
21,726 |
|
|
|
23,204 |
|
Long-term finance lease liabilities |
|
|
26,486 |
|
|
|
19,022 |
|
Long-term operating lease liabilities |
|
|
159,170 |
|
|
|
160,905 |
|
Long-term debt, less current portion, net |
|
|
768,820 |
|
|
|
597,069 |
|
Other long-term liabilities |
|
|
65,106 |
|
|
|
68,317 |
|
Total liabilities |
|
|
1,338,101 |
|
|
|
1,133,674 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
1,021 |
|
|
|
1,217 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
492 |
|
|
|
491 |
|
Additional paid-in capital |
|
|
445,964 |
|
|
|
449,829 |
|
Accumulated other comprehensive loss |
|
|
(7,289 |
) |
|
|
(10,135 |
) |
Retained earnings |
|
|
207,461 |
|
|
|
195,856 |
|
Treasury stock (16,815 shares at June 25, 2023 and 14,402 shares at December 26, 2022, at cost) |
|
|
(1,127,669 |
) |
|
|
(922,434 |
) |
Total stockholders’ deficit |
|
|
(481,041 |
) |
|
|
(286,393 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,562 |
|
|
|
15,729 |
|
Total Stockholders’ deficit |
|
|
(465,479 |
) |
|
|
(270,664 |
) |
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
873,643 |
|
|
$ |
864,227 |
|
(a) Represents vacant land adjacent to the Company’s |
||||||||
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
June 25,
|
|
June 26,
|
|
June 25,
|
|
June 26,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant sales |
|
$ |
175,780 |
|
|
$ |
171,411 |
|
|
$ |
355,646 |
|
|
$ |
370,176 |
|
|
|
|
34,711 |
|
|
|
34,917 |
|
|
|
70,783 |
|
|
|
69,185 |
|
|
|
|
206,980 |
|
|
|
219,383 |
|
|
|
419,546 |
|
|
|
429,062 |
|
International revenues |
|
|
34,608 |
|
|
|
31,958 |
|
|
|
66,071 |
|
|
|
66,575 |
|
Other revenues |
|
|
62,451 |
|
|
|
64,996 |
|
|
|
129,533 |
|
|
|
130,359 |
|
Total revenues |
|
|
514,530 |
|
|
|
522,665 |
|
|
|
1,041,579 |
|
|
|
1,065,357 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant expenses |
|
|
143,705 |
|
|
|
142,026 |
|
|
|
291,489 |
|
|
|
303,687 |
|
|
|
|
190,468 |
|
|
|
204,470 |
|
|
|
386,883 |
|
|
|
401,560 |
|
International expenses |
|
|
20,435 |
|
|
|
19,236 |
|
|
|
37,746 |
|
|
|
39,150 |
|
Other expenses |
|
|
58,996 |
|
|
|
60,648 |
|
|
|
120,074 |
|
|
|
121,203 |
|
General and administrative expenses |
|
|
50,324 |
|
|
|
44,646 |
|
|
|
102,268 |
|
|
|
110,584 |
|
Depreciation and amortization |
|
|
15,690 |
|
|
|
12,735 |
|
|
|
30,411 |
|
|
|
24,674 |
|
Total costs and expenses |
|
|
479,618 |
|
|
|
483,761 |
|
|
|
968,871 |
|
|
|
1,000,858 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,160 |
) |
Operating income |
|
|
34,912 |
|
|
|
38,904 |
|
|
|
72,708 |
|
|
|
53,339 |
|
Net interest expense |
|
|
(11,275 |
) |
|
|
(6,081 |
) |
|
|
(20,296 |
) |
|
|
(10,344 |
) |
Income before income taxes |
|
|
23,637 |
|
|
|
32,823 |
|
|
|
52,412 |
|
|
|
42,995 |
|
Income tax expense |
|
|
5,778 |
|
|
|
7,093 |
|
|
|
12,007 |
|
|
|
5,838 |
|
Net income before attribution to noncontrolling interests |
|
|
17,859 |
|
|
|
25,730 |
|
|
|
40,405 |
|
|
|
37,157 |
|
Net income attributable to noncontrolling interests |
|
|
(91 |
) |
|
|
(297 |
) |
|
|
(261 |
) |
|
|
(1,230 |
) |
Net income attributable to the Company |
|
$ |
17,768 |
|
|
$ |
25,433 |
|
|
$ |
40,144 |
|
|
$ |
35,927 |
|
|
|
|
|
|
|
|
|
|
||||||||
Calculation of net income for earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company |
|
$ |
17,768 |
|
|
$ |
25,433 |
|
|
$ |
40,144 |
|
|
$ |
35,927 |
|
Dividends paid to participating securities |
|
|
— |
|
|
|
(82 |
) |
|
|
— |
|
|
|
(141 |
) |
Net income attributable to participating securities |
|
|
— |
|
|
|
(111 |
) |
|
|
— |
|
|
|
(93 |
) |
Net income attributable to common shareholders |
|
$ |
17,768 |
|
|
$ |
25,240 |
|
|
$ |
40,144 |
|
|
$ |
35,693 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
0.55 |
|
|
$ |
0.71 |
|
|
$ |
1.20 |
|
|
$ |
1.00 |
|
Diluted earnings per common share |
|
$ |
0.54 |
|
|
$ |
0.70 |
|
|
$ |
1.20 |
|
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
32,563 |
|
|
|
35,624 |
|
|
|
33,359 |
|
|
|
35,775 |
|
Diluted weighted average common shares outstanding |
|
|
32,650 |
|
|
|
35,824 |
|
|
|
33,487 |
|
|
|
36,032 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
0.84 |
|
|
$ |
0.70 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
(In thousands) |
|
June 25,
|
|
June 26,
|
||||
|
|
|
|
|
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
40,405 |
|
|
$ |
37,157 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision for allowance for credit losses on accounts and notes receivable |
|
|
595 |
|
|
|
15,558 |
|
Depreciation and amortization |
|
|
30,411 |
|
|
|
24,674 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
11,160 |
|
Deferred income taxes |
|
|
3,664 |
|
|
|
(2,993 |
) |
Stock-based compensation expense |
|
|
8,498 |
|
|
|
9,100 |
|
Other |
|
|
(452 |
) |
|
|
(2,071 |
) |
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
4,299 |
|
|
|
(9,177 |
) |
Income tax receivable |
|
|
6,683 |
|
|
|
5,369 |
|
Inventories |
|
|
4,109 |
|
|
|
(3,815 |
) |
Prepaid expenses and other current assets |
|
|
46 |
|
|
|
(3,901 |
) |
Other assets and liabilities |
|
|
140 |
|
|
|
(5,379 |
) |
Accounts payable |
|
|
(8,174 |
) |
|
|
12,742 |
|
Income and other taxes payable |
|
|
(514 |
) |
|
|
(3,175 |
) |
Accrued expenses and other current liabilities |
|
|
7,203 |
|
|
|
(37,456 |
) |
Deferred revenue |
|
|
(3,178 |
) |
|
|
(2,208 |
) |
Net cash provided by operating activities |
|
|
93,735 |
|
|
|
45,585 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(34,759 |
) |
|
|
(30,744 |
) |
Notes issued |
|
|
(4,374 |
) |
|
|
(1,098 |
) |
Repayments of notes issued |
|
|
3,224 |
|
|
|
6,743 |
|
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
(1,250 |
) |
Other |
|
|
182 |
|
|
|
238 |
|
Net cash used in investing activities |
|
|
(35,727 |
) |
|
|
(12,523 |
) |
Financing activities |
|
|
|
|
||||
Net proceeds of revolving credit facilities |
|
|
186,529 |
|
|
|
55,000 |
|
Proceeds from exercise of stock options |
|
|
682 |
|
|
|
1,908 |
|
Acquisition of Company common stock |
|
|
(210,348 |
) |
|
|
(75,471 |
) |
Dividends paid to common stockholders |
|
|
(28,485 |
) |
|
|
(25,101 |
) |
Tax payments for equity award issuances |
|
|
(6,108 |
) |
|
|
(7,526 |
) |
Distributions to noncontrolling interests |
|
|
(323 |
) |
|
|
(835 |
) |
Other |
|
|
(3,567 |
) |
|
|
1,348 |
|
Net cash used in financing activities |
|
|
(61,620 |
) |
|
|
(50,677 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
11 |
|
|
|
(871 |
) |
Change in cash and cash equivalents |
|
|
(3,601 |
) |
|
|
(18,486 |
) |
Cash and cash equivalents at beginning of period |
|
|
47,373 |
|
|
|
70,610 |
|
Cash and cash equivalents at end of period |
|
$ |
43,772 |
|
|
$ |
52,124 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230801767503/en/
Papa Johns Investor Relations
investor_relations@papajohns.com
Source: Papa John’s International, Inc.
FAQ
What are Papa John’s second-quarter financial results?
What was the diluted earnings per common share for the second quarter?
What dividend increase did the company announce?
