Papa Johns Announces Third Quarter 2024 Financial Results
Highlights
-
North America comparable sales(a) were down6% from a year ago as Domestic Company-owned restaurants were down7% andNorth America franchised restaurants were down5% ; International comparable sales(a) were down3% compared with the prior year period. -
25 net restaurant openings in the third quarter;
North America remains on track for more than 100 gross restaurant openings in fiscal year 2024, while International anticipated gross openings increases to between 170 and 190 restaurants. -
Global system-wide restaurant sales were
, a$1.19 billion 3% (b) decrease compared with the prior year third quarter, driven by lower comparable sales partially offset by trailing twelve month net restaurant growth. -
Total revenues of
were down$507 million 3% compared with a year ago driven by lower International revenues resulting from the refranchising and closure of Company-owned restaurants and lower sales at our Domestic Company-owned restaurants. -
Operating income increased to
compared with$65 million a year ago, while Adjusted operating income(c) decreased$32 million to$4 million primarily related to lower Domestic Company-owned restaurant-level margins, as anticipated, in the third quarter.$29 million -
Diluted earnings per common share of
compared with$1.27 for the third quarter of 2023; Adjusted diluted earnings per common share(c) was$0.48 compared with$0.43 for the third quarter a year ago.$0.53
“In my first few months at Papa Johns, I have been impressed with the disciplined execution of our teams. During the third quarter, we delivered earnings in line with our expectations in what continues to be a very challenging consumer environment,” said Todd Penegor, Papa Johns President and CEO.
“I joined Papa Johns because I could see the potential in this company. With our leadership team, we continue to evaluate the business and refine our key strategic initiatives. We are encouraged by the early progress we are making to improve our value perception along with our digital and loyalty experience. Reigniting our track record of innovation and prioritizing the customer experience and franchisee profitability, we’re confident Papa Johns can return to sustainable, profitable growth,” added Penegor. “We are excited about the opportunities ahead of us and look forward to sharing our progress with our investors and other key stakeholders.”
(a) |
(b) Excludes the impact of foreign currency. |
(c) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures. |
Financial Highlights
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands, except per share amounts) |
|
September 29,
|
|
September 24,
|
|
Increase (Decrease) |
|
September 29,
|
|
September 24,
|
|
Increase (Decrease) |
||||||||
Total revenues |
|
$ |
506,807 |
|
$ |
522,812 |
|
$ |
(16,005 |
) |
|
$ |
1,528,617 |
|
$ |
1,564,391 |
|
$ |
(35,774 |
) |
Operating income |
|
$ |
65,229 |
|
$ |
31,868 |
|
$ |
33,361 |
|
|
$ |
127,173 |
|
$ |
104,576 |
|
$ |
22,597 |
|
Adjusted operating income (a) |
|
$ |
29,297 |
|
$ |
33,638 |
|
$ |
(4,341 |
) |
|
$ |
110,893 |
|
$ |
109,671 |
|
$ |
1,222 |
|
Net income attributable to the Company |
|
$ |
41,808 |
|
$ |
15,861 |
|
$ |
25,947 |
|
|
$ |
68,687 |
|
$ |
56,005 |
|
$ |
12,682 |
|
Diluted earnings per common share |
|
$ |
1.27 |
|
$ |
0.48 |
|
$ |
0.79 |
|
|
$ |
2.09 |
|
$ |
1.68 |
|
$ |
0.41 |
|
Adjusted diluted earnings per common share (a) |
|
$ |
0.43 |
|
$ |
0.53 |
|
$ |
(0.10 |
) |
|
$ |
1.71 |
|
$ |
1.80 |
|
$ |
(0.09 |
) |
Results for the first nine months of 2024 are not directly comparable with the first nine months of 2023, as year-over-year comparisons are impacted by the
Quarterly Results
Total revenues of
For the third quarter of 2024, Global system-wide restaurant sales were
Third quarter Operating income was
The decrease in Adjusted operating income in the third quarter of 2024 was primarily due to anticipated lower operating margins at our Domestic Company-owned restaurants as the Company strategically reinvested some of its first-half savings into improving its value perception with consumers.
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 nine months ended September 29, 2024.
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures. |
(b) Properties were subsequently leased back by the Company. See “Note 11. Divestitures” in the Company’s Form 10-Q for the quarter ended September 29, 2024 for additional information. |
Global Restaurant Sales Information
Global restaurant and comparable sales information for the three and nine months ended September 29, 2024, compared with the three and nine months ended September 24, 2023 are as follows (See “Supplemental Information and Financial Statements” below for related definitions):
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
Amounts below exclude the impact of foreign currency |
|
September 29,
|
|
September 24,
|
|
September 29,
|
|
September 24,
|
||||
Comparable sales growth (decline): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
(6.7 |
)% |
|
5.9 |
% |
|
(4.6 |
)% |
|
3.8 |
% |
|
|
(5.3 |
)% |
|
2.2 |
% |
|
(3.4 |
)% |
|
(0.4 |
)% |
|
|
(5.6 |
)% |
|
2.9 |
% |
|
(3.6 |
)% |
|
0.4 |
% |
International restaurants |
|
(2.8 |
)% |
|
(0.3 |
)% |
|
(1.8 |
)% |
|
(2.3 |
)% |
Total comparable sales growth (decline) |
|
(4.9 |
)% |
|
2.2 |
% |
|
(3.2 |
)% |
|
(0.2 |
)% |
System-wide restaurant sales growth (decline): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
(4.8 |
)% |
|
6.7 |
% |
|
(2.8 |
)% |
|
4.7 |
% |
|
|
(3.8 |
)% |
|
3.2 |
% |
|
(2.4 |
)% |
|
1.1 |
% |
|
|
(4.0 |
)% |
|
3.9 |
% |
|
(2.5 |
)% |
|
1.8 |
% |
International restaurants (a) |
|
— |
% |
|
8.8 |
% |
|
2.2 |
% |
|
6.8 |
% |
Total global system-wide restaurant sales growth (decline) (a) |
|
(3.0 |
)% |
|
5.1 |
% |
|
(1.4 |
)% |
|
3.0 |
% |
(a) System-wide sales for the nine months ended September 29, 2024 include |
Global Restaurants
As of September 29, 2024, there were 5,908 Papa Johns restaurants operating in 49 countries and territories, as follows:
Third Quarter |
Domestic Company Owned |
|
Franchised |
|
Total |
|
International Company Owned |
|
International Franchised |
|
Total International |
|
System-wide |
||||||
Beginning - June 30, 2024 |
537 |
|
2,910 |
|
|
3,447 |
|
|
33 |
|
|
2,403 |
|
|
2,436 |
|
|
5,883 |
|
Opened |
— |
|
18 |
|
|
18 |
|
|
— |
|
|
36 |
|
|
36 |
|
|
54 |
|
Closed |
— |
|
(11 |
) |
|
(11 |
) |
|
— |
|
|
(18 |
) |
|
(18 |
) |
|
(29 |
) |
Refranchised |
— |
|
— |
|
|
— |
|
|
(20 |
) |
|
20 |
|
|
— |
|
|
— |
|
Ending - September 29, 2024 |
537 |
|
2,917 |
|
|
3,454 |
|
|
13 |
|
|
2,441 |
|
|
2,454 |
|
|
5,908 |
|
Net restaurant growth/(decline) |
— |
|
7 |
|
|
7 |
|
|
(20 |
) |
|
38 |
|
|
18 |
|
|
25 |
|
Trailing four quarters net restaurant growth |
11 |
|
46 |
|
|
57 |
|
|
(105 |
) |
|
139 |
|
|
34 |
|
|
91 |
|
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
|
|
Nine Months Ended |
||||||
(in thousands) |
|
September 29, 2024 |
|
September 24, 2023 |
||||
Net cash provided by operating activities |
|
$ |
55,884 |
|
|
$ |
126,936 |
|
Purchases of property and equipment |
|
|
(46,931 |
) |
|
|
(50,905 |
) |
Free cash flow |
|
$ |
8,953 |
|
|
$ |
76,031 |
|
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, November 7, 2024, 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, supply chain operating margin, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, restaurant acquisitions, restaurant closures, labor shortages, labor cost increases, changes in management, inflation, royalty relief, franchisee support and incentives, 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, changes to our national marketing fund, changes to our commissary model, dividends, effective tax rates, regulatory changes and impacts, investments in and repositioning of 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.
We believe Domestic Company-owned,
Non-GAAP Financial Measures
In addition to the results provided in accordance with
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
September 29, 2024 |
|
September 24, 2023 |
|
September 29, 2024 |
|
September 24, 2023 |
||||||||
Operating income |
|
$ |
65,229 |
|
|
$ |
31,868 |
|
|
$ |
127,173 |
|
|
$ |
104,576 |
|
Gain on sale of QC Center properties (a) |
|
|
(41,289 |
) |
|
|
— |
|
|
|
(41,289 |
) |
|
|
— |
|
International restructuring costs (b) |
|
|
3,862 |
|
|
|
— |
|
|
|
19,514 |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,193 |
|
|
|
— |
|
|
|
2,501 |
|
Legal settlements (d) |
|
|
— |
|
|
|
577 |
|
|
|
— |
|
|
|
577 |
|
Other costs (e) |
|
|
1,495 |
|
|
|
— |
|
|
|
5,495 |
|
|
|
2,017 |
|
Adjusted operating income |
|
$ |
29,297 |
|
|
$ |
33,638 |
|
|
$ |
110,893 |
|
|
$ |
109,671 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
41,808 |
|
|
$ |
15,861 |
|
|
$ |
68,687 |
|
|
$ |
56,005 |
|
Gain on sale of QC Center properties (a) |
|
|
(41,289 |
) |
|
|
— |
|
|
|
(41,289 |
) |
|
|
— |
|
International restructuring costs (b) |
|
|
3,862 |
|
|
|
— |
|
|
|
19,514 |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,193 |
|
|
|
— |
|
|
|
2,501 |
|
Legal settlements (d) |
|
|
— |
|
|
|
577 |
|
|
|
— |
|
|
|
577 |
|
Other costs (e) |
|
|
1,495 |
|
|
|
— |
|
|
|
5,495 |
|
|
|
2,017 |
|
Tax effect of adjustments (f) |
|
|
8,121 |
|
|
|
(404 |
) |
|
|
3,679 |
|
|
|
(1,162 |
) |
Adjusted net income attributable to common shareholders |
|
$ |
13,997 |
|
|
$ |
17,227 |
|
|
$ |
56,086 |
|
|
$ |
59,938 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
|
$ |
1.27 |
|
|
$ |
0.48 |
|
|
$ |
2.09 |
|
|
$ |
1.68 |
|
Gain on sale of QC Center properties (a) |
|
|
(1.25 |
) |
|
|
— |
|
|
|
(1.25 |
) |
|
|
— |
|
International restructuring costs (b) |
|
|
0.12 |
|
|
|
— |
|
|
|
0.59 |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.07 |
|
Legal settlements (d) |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
Other costs (e) |
|
|
0.04 |
|
|
|
— |
|
|
|
0.17 |
|
|
|
0.06 |
|
Tax effect of adjustments (f) |
|
|
0.25 |
|
|
|
(0.01 |
) |
|
|
0.11 |
|
|
|
(0.03 |
) |
Adjusted diluted earnings per common share |
|
$ |
0.43 |
|
|
$ |
0.53 |
|
|
$ |
1.71 |
|
|
$ |
1.80 |
|
Refer to footnotes on following page.
Footnotes to Non-GAAP Financial Measures
(a) |
Represents pre-tax gain on sale, net of transaction costs, realized upon the August 2, 2024 completion of the sale of our |
(b) |
Represents costs associated with the Company’s International Restructuring plan. For the three and nine months ended September 29, 2024, these costs are comprised primarily of lease and fixed asset impairment charges related to restaurant closures in the |
(c) |
Represents costs associated with repositioning the |
(d) |
Represents accruals for certain legal settlements, recorded in General and administrative expenses. |
(e) |
For the three and nine months ended September 29, 2024, represents non-cash impairment and remeasurement charges related primarily to fixed and intangible assets from the refranchising of 15 Domestic Company-owned restaurants. For the three and nine months ended September 24, 2023, represents severance and related costs associated with the transition of certain executives, recorded in General and administrative expenses. |
(f) |
The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rates of |
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except per share amounts) |
|
September 29, 2024 |
|
December 31, 2023 |
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
17,550 |
|
|
$ |
40,587 |
|
Accounts receivable, net |
|
|
101,804 |
|
|
|
104,244 |
|
Notes receivable, current portion |
|
|
5,728 |
|
|
|
5,199 |
|
Income tax receivable |
|
|
2,414 |
|
|
|
2,577 |
|
Inventories |
|
|
36,488 |
|
|
|
36,126 |
|
Prepaid expenses and other current assets |
|
|
51,873 |
|
|
|
42,285 |
|
Total current assets |
|
|
215,857 |
|
|
|
231,018 |
|
Property and equipment, net |
|
|
266,508 |
|
|
|
282,812 |
|
Finance lease right-of-use assets, net |
|
|
25,535 |
|
|
|
31,740 |
|
Operating lease right-of-use assets |
|
|
191,194 |
|
|
|
164,158 |
|
Notes receivable, less current portion, net |
|
|
7,346 |
|
|
|
12,346 |
|
Goodwill |
|
|
76,460 |
|
|
|
76,206 |
|
Other assets |
|
|
77,975 |
|
|
|
76,725 |
|
Total assets |
|
$ |
860,875 |
|
|
$ |
875,005 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
62,800 |
|
|
$ |
74,949 |
|
Income and other taxes payable |
|
|
10,166 |
|
|
|
17,948 |
|
Accrued expenses and other current liabilities |
|
|
139,301 |
|
|
|
158,167 |
|
Current deferred revenue |
|
|
19,645 |
|
|
|
20,427 |
|
Current finance lease liabilities |
|
|
6,962 |
|
|
|
9,029 |
|
Current operating lease liabilities |
|
|
26,001 |
|
|
|
24,076 |
|
Current portion of long-term debt |
|
|
5,650 |
|
|
|
— |
|
Total current liabilities |
|
|
270,525 |
|
|
|
304,596 |
|
Deferred revenue |
|
|
18,737 |
|
|
|
20,366 |
|
Long-term finance lease liabilities |
|
|
19,921 |
|
|
|
24,144 |
|
Long-term operating lease liabilities |
|
|
180,137 |
|
|
|
151,050 |
|
Long-term debt, less current portion, net |
|
|
721,355 |
|
|
|
757,422 |
|
Other long-term liabilities |
|
|
64,882 |
|
|
|
60,192 |
|
Total liabilities |
|
|
1,275,557 |
|
|
|
1,317,770 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
937 |
|
|
|
851 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
493 |
|
|
|
492 |
|
Additional paid-in capital |
|
|
449,141 |
|
|
|
452,290 |
|
Accumulated other comprehensive loss |
|
|
(6,580 |
) |
|
|
(7,803 |
) |
Retained earnings |
|
|
242,269 |
|
|
|
219,027 |
|
Treasury stock (16,645 shares at September 29, 2024 and 16,747 shares at December 31, 2023, at cost) |
|
|
(1,116,256 |
) |
|
|
(1,123,098 |
) |
Total stockholders’ deficit |
|
|
(430,933 |
) |
|
|
(459,092 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,314 |
|
|
|
15,476 |
|
Total Stockholders’ deficit |
|
|
(415,619 |
) |
|
|
(443,616 |
) |
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
860,875 |
|
|
$ |
875,005 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
September 29,
|
|
September 24,
|
|
September 29,
|
|
September 24,
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant sales |
|
$ |
168,672 |
|
|
$ |
177,195 |
|
|
$ |
518,103 |
|
|
$ |
532,841 |
|
|
|
|
33,831 |
|
|
|
35,041 |
|
|
|
103,937 |
|
|
|
105,824 |
|
|
|
|
210,389 |
|
|
|
204,887 |
|
|
|
611,873 |
|
|
|
624,433 |
|
International revenues |
|
|
33,024 |
|
|
|
42,927 |
|
|
|
113,433 |
|
|
|
108,998 |
|
Other revenues |
|
|
60,891 |
|
|
|
62,762 |
|
|
|
181,271 |
|
|
|
192,295 |
|
Total revenues |
|
|
506,807 |
|
|
|
522,812 |
|
|
|
1,528,617 |
|
|
|
1,564,391 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant expenses |
|
|
142,403 |
|
|
|
145,433 |
|
|
|
419,189 |
|
|
|
436,922 |
|
|
|
|
193,818 |
|
|
|
189,551 |
|
|
|
561,316 |
|
|
|
576,434 |
|
International expenses |
|
|
19,001 |
|
|
|
29,796 |
|
|
|
74,424 |
|
|
|
67,542 |
|
Other expenses |
|
|
55,543 |
|
|
|
57,587 |
|
|
|
164,261 |
|
|
|
177,661 |
|
General and administrative expenses |
|
|
13,553 |
|
|
|
52,173 |
|
|
|
129,726 |
|
|
|
154,441 |
|
Depreciation and amortization |
|
|
17,260 |
|
|
|
16,404 |
|
|
|
52,528 |
|
|
|
46,815 |
|
Total costs and expenses |
|
|
441,578 |
|
|
|
490,944 |
|
|
|
1,401,444 |
|
|
|
1,459,815 |
|
Operating income |
|
|
65,229 |
|
|
|
31,868 |
|
|
|
127,173 |
|
|
|
104,576 |
|
Net interest expense |
|
|
(10,629 |
) |
|
|
(11,378 |
) |
|
|
(32,588 |
) |
|
|
(31,674 |
) |
Income before income taxes |
|
|
54,600 |
|
|
|
20,490 |
|
|
|
94,585 |
|
|
|
72,902 |
|
Income tax expense |
|
|
12,812 |
|
|
|
4,539 |
|
|
|
25,347 |
|
|
|
16,546 |
|
Net income before attribution to noncontrolling interests |
|
|
41,788 |
|
|
|
15,951 |
|
|
|
69,238 |
|
|
|
56,356 |
|
Net loss (income) attributable to noncontrolling interests |
|
|
20 |
|
|
|
(90 |
) |
|
|
(551 |
) |
|
|
(351 |
) |
Net income attributable to the Company |
|
$ |
41,808 |
|
|
$ |
15,861 |
|
|
$ |
68,687 |
|
|
$ |
56,005 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
1.28 |
|
|
$ |
0.49 |
|
|
$ |
2.10 |
|
|
$ |
1.69 |
|
Diluted earnings per common share |
|
$ |
1.27 |
|
|
$ |
0.48 |
|
|
$ |
2.09 |
|
|
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
32,745 |
|
|
|
32,564 |
|
|
|
32,701 |
|
|
|
33,053 |
|
Diluted weighted average common shares outstanding |
|
|
32,930 |
|
|
|
32,800 |
|
|
|
32,850 |
|
|
|
33,287 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.46 |
|
|
$ |
0.46 |
|
|
$ |
1.38 |
|
|
$ |
1.30 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Nine Months Ended |
||||||
(In thousands) |
|
September 29, 2024 |
|
September 24, 2023 |
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
69,238 |
|
|
$ |
56,356 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision for allowance for credit losses on accounts and notes receivable |
|
|
2,936 |
|
|
|
1,348 |
|
Depreciation and amortization |
|
|
52,528 |
|
|
|
46,815 |
|
Refranchising and impairment loss |
|
|
17,433 |
|
|
|
— |
|
Deferred income taxes |
|
|
3,877 |
|
|
|
3,481 |
|
Stock-based compensation expense |
|
|
5,903 |
|
|
|
13,224 |
|
Gain on disposal of property and equipment |
|
|
(42,034 |
) |
|
|
— |
|
Other |
|
|
614 |
|
|
|
331 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
879 |
|
|
|
(11,643 |
) |
Income tax receivable |
|
|
232 |
|
|
|
7,617 |
|
Inventories |
|
|
(207 |
) |
|
|
3,875 |
|
Prepaid expenses and other current assets |
|
|
(1,684 |
) |
|
|
(2,104 |
) |
Other assets and liabilities |
|
|
(5,923 |
) |
|
|
2,057 |
|
Accounts payable |
|
|
(12,389 |
) |
|
|
15,237 |
|
Income and other taxes payable |
|
|
(7,609 |
) |
|
|
1,087 |
|
Accrued expenses and other current liabilities |
|
|
(25,837 |
) |
|
|
(6,579 |
) |
Deferred revenue |
|
|
(2,073 |
) |
|
|
(4,166 |
) |
Net cash provided by operating activities |
|
|
55,884 |
|
|
|
126,936 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(46,931 |
) |
|
|
(50,905 |
) |
Notes issued |
|
|
(154 |
) |
|
|
(7,310 |
) |
Repayments of notes issued |
|
|
3,148 |
|
|
|
5,759 |
|
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
(5,599 |
) |
Proceeds from dispositions |
|
|
49,012 |
|
|
|
— |
|
Other |
|
|
2,373 |
|
|
|
401 |
|
Net cash provided by (used in) investing activities |
|
|
7,448 |
|
|
|
(57,654 |
) |
Financing activities |
|
|
|
|
||||
Net (repayments) proceeds of revolving credit facilities |
|
|
(31,589 |
) |
|
|
185,789 |
|
Proceeds from exercise of stock options |
|
|
1,021 |
|
|
|
1,816 |
|
Acquisition of Company common stock |
|
|
— |
|
|
|
(210,348 |
) |
Dividends paid to common stockholders |
|
|
(45,381 |
) |
|
|
(43,641 |
) |
Tax payments for equity award issuances |
|
|
(3,508 |
) |
|
|
(6,279 |
) |
Distributions to noncontrolling interests |
|
|
(627 |
) |
|
|
(651 |
) |
Principal payments on finance leases |
|
|
(6,778 |
) |
|
|
(5,975 |
) |
Other |
|
|
278 |
|
|
|
150 |
|
Net cash used in financing activities |
|
|
(86,584 |
) |
|
|
(79,139 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
215 |
|
|
|
(24 |
) |
Change in cash and cash equivalents |
|
|
(23,037 |
) |
|
|
(9,881 |
) |
Cash and cash equivalents at beginning of period |
|
|
40,587 |
|
|
|
47,373 |
|
Cash and cash equivalents at end of period |
|
$ |
17,550 |
|
|
$ |
37,492 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106937512/en/
Papa Johns Investor Relations
investor_relations@papajohns.com
Source: Papa John’s International, Inc.