ANN ARBOR, Mich., Oct. 8, 2015 /PRNewswire/ -- Domino's Pizza,
Inc. (NYSE: DPZ), the recognized world leader in pizza
delivery, today announced results for the third quarter of 2015,
comprised of strong same store sales results and store count
growth. Domestic same store sales grew 10.5% during the quarter
versus the year-ago period, continuing the positive sales momentum
in the Company's domestic business. The international division also
posted strong results with same store sales growth of 7.7%, marking
the 87th consecutive quarter of international same store
sales growth. The Company had global net store growth of 194 stores
in the quarter.
During the quarter, the Company incurred incremental insurance
expense relating to updated independent actuarial estimates for the
Company's casualty insurance program, and faced continued pressure
from foreign currency exchange rates. Diluted EPS was 67 cents for the third quarter, which was up 6.3%
over the Company's diluted EPS in the prior year quarter.
The Company repurchased 365,460 shares of its common stock
during the quarter for approximately $40.9
million. The Board of Directors also declared a 31-cent per share quarterly dividend for
shareholders of record as of December 15,
2015, to be paid on December 30,
2015.
J. Patrick Doyle, Domino's
President and Chief Executive Officer, said: "We are pleased
with the sustained strong sales and continued momentum behind store
growth. The things we are doing are working, and we will continue
to aggressively lead the industry."
Third Quarter Highlights:
(dollars in
millions, except per share data)
|
|
Third
Quarter
of
2015
|
|
|
Third
Quarter
of
2014
|
|
|
Three
Fiscal
Quarters
of
2015
|
|
|
Three
Fiscal
Quarters
of
2014
|
|
Net
income
|
|
$
|
37.8
|
|
|
$
|
35.6
|
|
|
$
|
130.0
|
|
|
$
|
114.6
|
|
Weighted average
diluted shares
|
|
|
56,115,670
|
|
|
|
56,610,608
|
|
|
|
56,584,913
|
|
|
|
57,030,669
|
|
Diluted earnings
per share, as reported
|
|
$
|
0.67
|
|
|
$
|
0.63
|
|
|
$
|
2.30
|
|
|
$
|
2.01
|
|
Items affecting
comparability*
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.02)
|
|
Diluted earnings
per share, as adjusted*
|
|
$
|
0.67
|
|
|
$
|
0.63
|
|
|
$
|
2.30
|
|
|
$
|
1.98
|
|
* Refer to the Items Affecting
Comparability section below for additional details. Diluted
earnings per share figures may not sum to the total due to the
rounding of each individual calculation.
- Revenues were up 8.5% for the third quarter versus the
prior year period, driven by higher supply chain volumes and sales
of equipment to stores in connection with the Company's global
store reimaging program. Higher domestic same store sales and store
count growth, which resulted in increased royalties from franchised
stores and higher revenues at Company-owned stores, also
contributed to this increase. International revenues benefited from
increased same store sales and store count growth, and were offset
in part by the negative impact of foreign currency.
- Net Income was up 6.2% for the third quarter versus the
prior year period, driven by domestic and international same store
sales growth, global store count growth and higher supply chain
volumes. These increases were offset in part by the negative impact
of foreign currency exchange rates and incremental insurance
expense related to the Company's casualty insurance program.
- Diluted EPS was 67 cents
for the third quarter versus 63 cents
in the prior year quarter, an increase of 4
cents, or 6.3%. This increase was due to higher net income
and lower weighted average diluted shares outstanding.
The table below outlines certain statistical measures utilized
by the Company to analyze its performance. Refer to the Comments
on Regulation G section below for additional details.
|
|
Third
Quarter
of
2015
|
|
|
Third
Quarter
of
2014
|
|
Same store sales
growth: (versus prior year period)
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
+ 11.5
|
%
|
|
|
+ 6.1
|
%
|
Domestic franchise
stores
|
|
|
+ 10.4
|
%
|
|
|
+ 7.8
|
%
|
Domestic
stores
|
|
|
+ 10.5
|
%
|
|
|
+ 7.7
|
%
|
International stores
(excluding foreign currency impact)
|
|
|
+ 7.7
|
%
|
|
|
+ 7.1
|
%
|
|
|
|
|
|
|
|
|
|
Global retail
sales growth: (versus prior year period)
|
|
|
|
|
|
|
|
|
Domestic
stores
|
|
|
+ 12.7
|
%
|
|
|
+ 9.3
|
%
|
International
stores
|
|
|
+ 0.7
|
%
|
|
|
+ 17.9
|
%
|
Total
|
|
|
+ 6.1
|
%
|
|
|
+ 13.8
|
%
|
|
|
|
|
|
|
|
|
|
Global retail
sales growth: (versus prior year period,
excluding foreign currency impact)
|
|
|
|
|
|
|
|
|
Domestic
stores
|
|
|
+ 12.7
|
%
|
|
|
+ 9.3
|
%
|
International
stores
|
|
|
+ 17.4
|
%
|
|
|
+ 15.2
|
%
|
Total
|
|
|
+ 15.2
|
%
|
|
|
+ 12.4
|
%
|
|
|
Domestic
Company-
owned
Stores
|
|
|
Domestic
Franchise
Stores
|
|
|
Total
Domestic
Stores
|
|
|
International
Stores
|
|
|
Total
|
|
Store
counts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store count at June
14, 2015
|
|
|
376
|
|
|
|
4,722
|
|
|
|
5,098
|
|
|
|
6,827
|
|
|
|
11,925
|
|
Openings
|
|
|
1
|
|
|
|
23
|
|
|
|
24
|
|
|
|
201
|
|
|
|
225
|
|
Closings
|
|
|
—
|
|
|
|
(10)
|
|
|
|
(10)
|
|
|
|
(21)
|
|
|
|
(31)
|
|
Transfers
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Store count at
September 6, 2015
|
|
|
377
|
|
|
|
4,735
|
|
|
|
5,112
|
|
|
|
7,007
|
|
|
|
12,119
|
|
Third quarter 2015 net
change
|
|
|
1
|
|
|
|
13
|
|
|
|
14
|
|
|
|
180
|
|
|
|
194
|
|
Trailing four quarters
net change
|
|
|
1
|
|
|
|
95
|
|
|
|
96
|
|
|
|
742
|
|
|
|
838
|
|
Casualty Insurance
The Company has retention programs for workers' compensation,
general liability and owned and non-owned automobile liabilities
for its corporate stores, offices and supply chain centers.
Insurance reserves relating to these retention programs are based
on independent actuarial estimates.
While the Company's claims activity in these areas has been
fairly consistent over the past several years, as the Company
announced on September 28, 2015, a
more recent increase in the frequency and severity of claims
resulted in an independent actuarial determination that required
the Company to record a pre-tax expense of approximately
$5.7 million in the third quarter.
This resulted in an approximate six-cent decrease in the third quarter 2015
diluted earnings per share. The Company will continue to focus on
its safety efforts for all of its team members.
Proposed Debt Refinancing
On September 28, 2015, the Company
issued a press release announcing the intent of certain of its
subsidiaries to complete a recapitalization transaction, which will
include the refinancing of a portion of their outstanding
securitized debt with a new series of securitized notes under its
existing securitized financing facility.
Conference Call Information
The Company will file its quarterly report on Form 10-Q this
morning. As previously announced, Domino's Pizza, Inc. will
hold a conference call today at 10
a.m. (Eastern) to review its third quarter 2015 financial
results. The call can be accessed by dialing (888) 400-9978
(U.S./Canada) or (706) 634-4947
(International). Ask for the Domino's Pizza conference call. The
call will also be webcast at biz.dominos.com. If you are unable to
participate on the call, a replay will be available for 30 days by
dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406 (International),
Conference ID 71624546. The webcast will also be archived for 30
days on biz.dominos.com.
Share Repurchases
During the third quarter of 2015, the Company repurchased and
retired 365,460 shares of its common stock under its open market
share repurchase program for approximately $40.9 million, or an average price of
$111.96 per share.
Dividends
On October 6, 2015, the Board of
Directors declared a 31-cent per
share quarterly dividend for shareholders of record as of
December 15, 2015, to be paid on
December 30, 2015.
Items Affecting Comparability
The Company's reported financial results for the three fiscal
quarters of 2015 are not comparable to the reported financial
results for the equivalent period in 2014. The table below presents
certain items that affect comparability between 2015 and 2014
financial results. Management believes that including such
information is critical to the understanding of its financial
results for the three fiscal quarters of 2015 as compared to the
same period in 2014 (See the Comments on Regulation G
section below for additional details).
In addition to the items noted in the table below, the Company
had lower weighted average diluted shares outstanding in 2015 that
resulted in an increase in diluted EPS of approximately
one cent in the third quarter of 2015
and two cents in the three fiscal
quarters of 2015.
|
|
Third
Quarter
|
|
|
Three Fiscal
Quarters
|
|
(in thousands,
except per share data)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
Impact
|
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
Impact
|
|
2014 items
affecting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on the sale of
Company-owned stores (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,652
|
|
|
$
|
1,033
|
|
|
$
|
0.02
|
|
Deferred tax asset
valuation allowance
reversal
(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
329
|
|
|
|
0.01
|
|
Total of 2014
items*
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,652
|
|
|
$
|
1,362
|
|
|
$
|
0.02
|
|
* Diluted earnings per share
figures may not sum to the total due to the rounding of each
individual calculation.
(1) Represents the gain recognized on the sale of 14
Company-owned stores to a franchisee. The gain is net of a
reduction in goodwill of approximately $0.5
million.
(2) As a result of the capital gain recognized in
connection with the sale of Company-owned stores, the Company was
able to utilize a portion of a previously unrecognized benefit of a
capital loss carry forward.
Liquidity
As of September 6, 2015, the
Company had approximately:
- $32.5 million of unrestricted
cash and cash equivalents;
- $1.53 billion in total debt; and
- $56.5 million of available
borrowings under its $100.0 million
variable funding notes facility. This amount is net of letters of
credit issued of $43.5 million, of
which $5.0 million has been
collateralized with restricted cash. The Company has the ability to
access this collateralized cash with minimal notice.
The Company invested $33.8 million
in capital expenditures during the three fiscal quarters of 2015,
versus $31.0 million in the three
fiscal quarters of 2014.
Free cash flow, as reconciled below to cash flows from
operations as determined under generally accepted accounting
principles (GAAP), was approximately $133.5
million in the three fiscal quarters of 2015.
(in
thousands)
|
|
Three Fiscal
Quarters
of
2015
|
|
Net cash provided by
operating activities
|
|
$
|
167,308
|
|
Capital
expenditures
|
|
|
(33,834)
|
|
Free cash
flow
|
|
$
|
133,474
|
|
Comments on Regulation G
In addition to the GAAP financial measures set forth in this
press release, the Company has included non-GAAP financial measures
within the meaning of Regulation G due to items affecting
comparability between fiscal quarters. The Company has also
included metrics such as global retail sales growth and same store
sales growth, which are commonly used statistical measures in the
quick-service restaurant industry that are important to
understanding Company performance.
The Company uses "Diluted EPS, as adjusted," which is
calculated as reported Diluted EPS adjusted for the items that
affect comparability to the prior year period discussed above. The
most directly comparable financial measure calculated and presented
in accordance with GAAP is Diluted EPS. The Company believes that
the Diluted EPS, as adjusted measure is important and useful to
investors and other interested persons and that such persons
benefit from having a consistent basis for comparison between
reporting periods. The Company uses Diluted EPS, as adjusted to
internally evaluate operating performance, to evaluate itself
against its peers and in long-range planning. Additionally, the
Company believes that analysts covering the Company's stock
performance generally eliminate these items affecting comparability
when preparing their financial models, when determining their
published EPS estimates and when benchmarking the Company against
its competitors.
The Company uses "Global retail sales" to refer to total
worldwide retail sales at Company-owned and franchise stores. The
Company believes global retail sales information is useful in
analyzing revenues because franchisees pay royalties that are based
on a percentage of franchise retail sales. The Company reviews
comparable industry global retail sales information to assess
business trends and to track the growth of the Domino's
Pizza® brand. In addition, supply chain revenues are
directly impacted by changes in franchise retail sales. Retail
sales for franchise stores are reported to the Company by its
franchisees and are not included in Company revenues.
The Company uses "Same store sales growth," which is
calculated by including only sales from stores that also had sales
in the comparable period of the prior year. International same
store sales growth is calculated similarly to domestic same store
sales growth. Changes in international same store sales are
reported excluding foreign currency impacts, which reflect changes
in international local currency sales.
The Company uses "Free cash flow," which is calculated as
cash flows from operations less capital expenditures, both as
reported under GAAP. The Company believes that the free cash flow
measure is important to investors and other interested persons, and
that such persons benefit from having a measure which communicates
how much cash flow is available for working capital needs or to be
used for repurchasing debt, making acquisitions, repurchasing
common stock, paying dividends or other similar uses of cash.
About Domino's Pizza®
Founded in 1960, Domino's Pizza is the recognized world leader
in pizza delivery, with a significant business in carryout pizza.
It ranks among the world's top public restaurant brands with a
global enterprise of more than 12,100 stores in over 80
international markets. Domino's had global retail sales of over
$8.9 billion in 2014, comprised of
more than $4.1 billion in the U.S.
and nearly $4.8 billion
internationally. In the third quarter of 2015, Domino's had global
retail sales of over $2.1 billion,
comprised of over $1.0 billion in the
U.S. and over $1.1 billion
internationally. Its system is comprised of independent franchise
owners who accounted for nearly 97% of Domino's stores as of the
third quarter of 2015. Emphasis on technology innovation helped
Domino's generate approximately 50% of U.S. sales from digital
channels at the end of 2014, and reach an estimated run rate of
$4.0 billion annually in global
digital sales. Domino's features an ordering app lineup that covers
nearly 95% of the U.S. smartphone market and has recently
introduced several innovative ordering platforms, including Ford
SYNC®, Samsung Smart TV® and Pebble Watch, as
well as Twitter and text message using a pizza emoji. In
June 2014, Domino's debuted voice
ordering for its iPhone® and Android™ apps, a
true technology first within traditional and e-commerce retail.
Order – www.dominos.com
Mobile – http://mobile.dominos.com
Digital Info – anyware.dominos.com
Company Info – biz.dominos.com
Twitter – http://twitter.com/dominos
Facebook – http://www.facebook.com/dominos
YouTube – http://www.youtube.com/dominos
Please visit our Investor Relations website at biz.dominos.com
to view a schedule of upcoming earnings releases, significant
announcements and conference webcasts.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:
This press release contains forward-looking statements. You can
identify forward-looking statements because they contain words such
as "believes," "expects," "may," "will," "should," "seeks,"
"approximately," "intends," "plans," "estimates," or "anticipates"
or similar expressions that concern our strategy, plans or
intentions. These forward-looking statements relating to our
anticipated profitability, estimates in same store sales growth,
the growth of our international business, ability to service our
indebtedness, our future cash flows, our operating performance,
trends in our business and other descriptions of future events
reflect the Company's expectations based upon currently available
information and data. However, actual results are subject to future
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. The risks and uncertainties that could cause actual
results to differ materially include: the level of our long-term
and other indebtedness, as well as our ability to complete the
proposed refinancing on the terms described or at all;
uncertainties relating to litigation; consumer preferences,
spending patterns and demographic trends; the effectiveness of our
advertising, operations and promotional initiatives; the strength
of our brand in the markets in which we compete; our ability to
retain key personnel; new product, digital ordering and concept
developments by us, and other food-industry competitors; the
ongoing level of profitability of our franchisees; and our ability
and that of our franchisees to open new restaurants and keep
existing restaurants in operation; changes in operating expenses
resulting from changes in prices of food (particularly cheese),
labor, utilities, insurance, employee benefits and other operating
costs; the impact that widespread illness or general health
concerns may have on our business and the economy of the countries
where we operate; severe weather conditions and natural disasters;
changes in our effective tax rate; changes in foreign currency
exchange rates; changes in government legislation and regulations;
adequacy of our insurance coverage; costs related to future
financings; our ability and that of our franchisees to successfully
operate in the current credit environment; changes in the level of
consumer spending given the general economic conditions including
interest rates, energy prices and weak consumer confidence;
availability of borrowings under our variable funding notes and our
letters of credit; and changes in accounting policies. Important
factors that could cause actual results to differ materially from
our expectations are more fully described in our other filings with
the Securities and Exchange Commission, including under the section
headed "Risk Factors" in our annual report on Form 10-K. These
forward-looking statements speak only as of the date of this press
release, and you should not rely on such statements as representing
the views of the Company as of any subsequent date. Except as
required by applicable securities laws, we do not undertake to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
TABLES TO
FOLLOW
|
Domino's Pizza,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
|
|
|
Fiscal Quarter
Ended
|
|
|
|
September
6,
2015
|
|
|
%
of
Total
Revenues
|
|
|
September
7,
2014
|
|
|
%
of
Total
Revenues
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
$
|
86,456
|
|
|
|
|
|
|
$
|
77,644
|
|
|
|
|
|
Domestic
franchise
|
|
|
59,385
|
|
|
|
|
|
|
|
51,858
|
|
|
|
|
|
Supply
chain
|
|
|
303,591
|
|
|
|
|
|
|
|
282,506
|
|
|
|
|
|
International
franchise
|
|
|
35,264
|
|
|
|
|
|
|
|
34,560
|
|
|
|
|
|
Total
revenues
|
|
|
484,696
|
|
|
|
100.0
|
%
|
|
|
446,568
|
|
|
|
100.0
|
%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
70,032
|
|
|
|
|
|
|
|
59,754
|
|
|
|
|
|
Supply
chain
|
|
|
272,710
|
|
|
|
|
|
|
|
253,300
|
|
|
|
|
|
Total cost of
sales
|
|
|
342,742
|
|
|
|
70.7
|
%
|
|
|
313,054
|
|
|
|
70.1
|
%
|
Operating
margin
|
|
|
141,954
|
|
|
|
29.3
|
%
|
|
|
133,514
|
|
|
|
29.9
|
%
|
General and
administrative
|
|
|
61,411
|
|
|
|
12.7
|
%
|
|
|
56,573
|
|
|
|
12.7
|
%
|
Income from
operations
|
|
|
80,543
|
|
|
|
16.6
|
%
|
|
|
76,941
|
|
|
|
17.2
|
%
|
Interest expense,
net
|
|
|
(19,915)
|
|
|
|
(4.1)
|
%
|
|
|
(19,952)
|
|
|
|
(4.4)
|
%
|
Income before
provision for income taxes
|
|
|
60,628
|
|
|
|
12.5
|
%
|
|
|
56,989
|
|
|
|
12.8
|
%
|
Provision for income
taxes
|
|
|
22,796
|
|
|
|
4.7
|
%
|
|
|
21,371
|
|
|
|
4.8
|
%
|
Net income
|
|
$
|
37,832
|
|
|
|
7.8
|
%
|
|
$
|
35,618
|
|
|
|
8.0
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
|
$
|
0.67
|
|
|
|
|
|
|
$
|
0.63
|
|
|
|
|
|
Dividends declared
per share
|
|
$
|
0.31
|
|
|
|
|
|
|
$
|
0.25
|
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
|
|
|
Three Fiscal
Quarters Ended
|
|
|
|
September
6,
2015
|
|
|
%
of
Total
Revenues
|
|
|
September
7,
2014
|
|
|
%
of
Total
Revenues
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
$
|
267,625
|
|
|
|
|
|
|
$
|
238,915
|
|
|
|
|
|
Domestic
franchise
|
|
|
181,986
|
|
|
|
|
|
|
|
157,317
|
|
|
|
|
|
Supply
chain
|
|
|
918,150
|
|
|
|
|
|
|
|
851,768
|
|
|
|
|
|
International
franchise
|
|
|
107,584
|
|
|
|
|
|
|
|
102,883
|
|
|
|
|
|
Total
revenues
|
|
|
1,475,345
|
|
|
|
100.0
|
%
|
|
|
1,350,883
|
|
|
|
100.0
|
%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
204,266
|
|
|
|
|
|
|
|
183,262
|
|
|
|
|
|
Supply
chain
|
|
|
819,387
|
|
|
|
|
|
|
|
762,420
|
|
|
|
|
|
Total cost of
sales
|
|
|
1,023,653
|
|
|
|
69.4
|
%
|
|
|
945,682
|
|
|
|
70.0
|
%
|
Operating
margin
|
|
|
451,692
|
|
|
|
30.6
|
%
|
|
|
405,201
|
|
|
|
30.0
|
%
|
General and
administrative
|
|
|
184,665
|
|
|
|
12.5
|
%
|
|
|
162,722
|
|
|
|
12.0
|
%
|
Income from
operations
|
|
|
267,027
|
|
|
|
18.1
|
%
|
|
|
242,479
|
|
|
|
18.0
|
%
|
Interest expense,
net
|
|
|
(58,939)
|
|
|
|
(4.0)
|
%
|
|
|
(60,071)
|
|
|
|
(4.5)
|
%
|
Income before
provision for income taxes
|
|
|
208,088
|
|
|
|
14.1
|
%
|
|
|
182,408
|
|
|
|
13.5
|
%
|
Provision for income
taxes
|
|
|
78,058
|
|
|
|
5.3
|
%
|
|
|
67,854
|
|
|
|
5.0
|
%
|
Net income
|
|
$
|
130,030
|
|
|
|
8.8
|
%
|
|
$
|
114,554
|
|
|
|
8.5
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
|
$
|
2.30
|
|
|
|
|
|
|
$
|
2.01
|
|
|
|
|
|
Dividends declared
per share
|
|
$
|
0.93
|
|
|
|
|
|
|
$
|
0.75
|
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
September 6,
2015
|
|
|
December 28,
2014
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
32,506
|
|
|
$
|
30,855
|
|
Restricted cash and
cash equivalents
|
|
|
91,021
|
|
|
|
120,954
|
|
Accounts
receivable
|
|
|
112,398
|
|
|
|
118,395
|
|
Inventories
|
|
|
39,826
|
|
|
|
37,944
|
|
Advertising fund
assets, restricted
|
|
|
96,030
|
|
|
|
72,055
|
|
Other
assets
|
|
|
32,651
|
|
|
|
48,158
|
|
Total current
assets
|
|
|
404,432
|
|
|
|
428,361
|
|
Property, plant and
equipment, net
|
|
|
119,452
|
|
|
|
114,046
|
|
Other
assets
|
|
|
79,312
|
|
|
|
76,873
|
|
Total
assets
|
|
$
|
603,196
|
|
|
$
|
619,280
|
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
256
|
|
|
$
|
565
|
|
Accounts
payable
|
|
|
86,423
|
|
|
|
86,552
|
|
Dividends
payable
|
|
|
17,316
|
|
|
|
14,351
|
|
Advertising fund
liabilities
|
|
|
96,030
|
|
|
|
72,055
|
|
Other accrued
liabilities
|
|
|
79,266
|
|
|
|
92,085
|
|
Total current
liabilities
|
|
|
279,291
|
|
|
|
265,608
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
1,527,664
|
|
|
|
1,523,546
|
|
Other accrued
liabilities
|
|
|
52,190
|
|
|
|
49,591
|
|
Total long-term
liabilities
|
|
|
1,579,854
|
|
|
|
1,573,137
|
|
Total stockholders'
deficit
|
|
|
(1,255,949)
|
|
|
|
(1,219,465)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
603,196
|
|
|
$
|
619,280
|
|
Domino's Pizza,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
Three Fiscal
Quarters Ended
|
|
|
|
September
6,
2015
|
|
|
September
7,
2014
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
130,030
|
|
|
$
|
114,554
|
|
Adjustments to
reconcile net income to net cash flows provided
by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
22,695
|
|
|
|
20,024
|
|
Gains on sale/disposal
of assets
|
|
|
(73)
|
|
|
|
(1,381)
|
|
Amortization of
deferred financing costs
|
|
|
3,825
|
|
|
|
4,046
|
|
Provision for deferred
income taxes
|
|
|
959
|
|
|
|
1,008
|
|
Non-cash compensation
expense
|
|
|
11,188
|
|
|
|
11,897
|
|
Tax impact from
equity-based compensation
|
|
|
(15,745)
|
|
|
|
(10,899)
|
|
Other
|
|
|
(1,216)
|
|
|
|
(888)
|
|
Changes in operating
assets and liabilities
|
|
|
15,645
|
|
|
|
(19,476)
|
|
Net cash provided by
operating activities
|
|
|
167,308
|
|
|
|
118,885
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(33,834)
|
|
|
|
(30,983)
|
|
Proceeds from sale of
assets
|
|
|
10,464
|
|
|
|
5,802
|
|
Changes in restricted
cash
|
|
|
29,933
|
|
|
|
51,861
|
|
Other
|
|
|
1,304
|
|
|
|
(1,365)
|
|
Net cash provided by
investing activities
|
|
|
7,867
|
|
|
|
25,315
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
|
5,000
|
|
|
|
-
|
|
Repayments of
long-term debt and capital lease obligations
|
|
|
(5,198)
|
|
|
|
(12,152)
|
|
Proceeds from exercise
of stock options
|
|
|
4,459
|
|
|
|
3,094
|
|
Tax impact from
equity-based compensation
|
|
|
15,745
|
|
|
|
10,899
|
|
Purchases of common
stock
|
|
|
(138,550)
|
|
|
|
(82,407)
|
|
Tax payments for
restricted stock upon vesting
|
|
|
(7,442)
|
|
|
|
(7,889)
|
|
Payments of common
stock dividends and equivalents
|
|
|
(48,141)
|
|
|
|
(39,208)
|
|
Net cash used in
financing activities
|
|
|
(174,127)
|
|
|
|
(127,663)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
603
|
|
|
|
16
|
|
Change in cash and
cash equivalents
|
|
|
1,651
|
|
|
|
16,553
|
|
Cash and cash
equivalents, at beginning of period
|
|
|
30,855
|
|
|
|
14,383
|
|
Cash and cash
equivalents, at end of period
|
|
$
|
32,506
|
|
|
$
|
30,936
|
|
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SOURCE Domino's Pizza