ANN ARBOR, Mich., Feb. 28, 2017 /PRNewswire/ -- Domino's Pizza,
Inc. (NYSE: DPZ), the recognized world leader in pizza
delivery, today announced results for the fourth quarter and fiscal
2016, comprised of strong growth in same store sales, global store
counts and earnings per share. Domestic same store sales grew 12.2%
during the quarter versus the year-ago period, and 10.5% for the
full year, continuing the positive sales momentum in the Company's
domestic business. The international division also posted strong
results, with same store sales growth of 4.3% during the quarter
and 6.3% for the full year. The fourth quarter marked the
92nd consecutive quarter – or 23rd year – of
positive international same store sales growth and the
23rd consecutive quarter of positive domestic same store
sales growth. The Company also had record global net store growth
of 1,281 stores in 2016, comprised of 171 net new domestic stores
and 1,110 net new stores internationally.
Fourth quarter diluted EPS was $1.48, up 25.4% over the prior-year quarter; full
year diluted EPS was $4.30, up 23.9%
over the prior year. Management noted that the as-reported diluted
EPS for both the fourth quarter and fiscal 2015 was negatively
impacted by expenses related to the Company's recapitalization, and
was positively impacted by the inclusion of an extra, or
53rd, week in the fourth quarter of 2015. Fourth quarter
diluted EPS was up 28.7% over the prior-year quarter as-adjusted
EPS of $1.15; full year diluted EPS
was up 24.6% over the prior year as-adjusted EPS of $3.45.
On February 15, 2017, the Board of
Directors declared a 46-cent per
share quarterly dividend for shareholders of record as of
March 15, 2017 to be paid on
March 30, 2017. This represents a
21.1% increase over the previous quarterly dividend amount.
"I'm extremely proud of our franchisees and operators worldwide,
including those who contributed toward back-to-back years of double
digit sales growth in the U.S.," said J.
Patrick Doyle, Domino's President and Chief Executive
Officer. "While these unprecedented results speak for
themselves, I am most pleased with the passion and energy we
demonstrated throughout 2016 in meeting the challenge of sustained
success. The momentum and alignment within our system has never
been stronger."
Fourth Quarter and Fiscal 2016 Highlights:
(dollars in
millions, except per share data)
|
|
Fourth
Quarter
of
2016
|
|
Fourth
Quarter
of
2015
|
|
Fiscal
2016
|
|
Fiscal
2015
|
Net
income
|
|
$
|
72.7
|
|
$
|
62.8
|
|
$
|
214.7
|
|
$
|
192.8
|
Weighted average
diluted shares
|
|
|
49,090,074
|
|
|
53,351,075
|
|
|
49,923,859
|
|
|
55,532,955
|
Diluted earnings
per share, as reported
|
|
$
|
1.48
|
|
$
|
1.18
|
|
$
|
4.30
|
|
$
|
3.47
|
Items affecting
comparability*
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
(0.02)
|
Diluted earnings
per share, as adjusted*
|
|
$
|
1.48
|
|
$
|
1.15
|
|
$
|
4.30
|
|
$
|
3.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Refer to the
Items Affecting Comparability section on page three for
additional details. Diluted earnings per share, as adjusted figures
may not sum to the total due to the rounding of each individual
calculation.
|
- Revenues were up 10.6% for the fourth quarter versus the
prior year period, due primarily to higher supply chain volumes as
well as higher Company-owned store, domestic franchise and
international franchise revenues resulting from increased same
store sales and store count growth. The increase in consolidated
revenue was offset in part by the inclusion of the 53rd
week in fiscal 2015 and the negative impact of foreign currency
exchange rates.
- Net Income increased 15.9% for the fourth quarter versus
the prior year period, primarily driven by an increase in store
count and same store sales growth as well as higher supply chain
volumes. The increase in consolidated net income was partially
offset by higher general and administrative expenses and the
negative impact of foreign exchange rates. The inclusion of the
53rd week in 2015 and the Company's 2015
recapitalization both impact the comparability of the financial
results for the fourth quarter. See the Items Affecting
Comparability section for additional details.
- Diluted EPS was $1.48 for
the fourth quarter versus $1.18 in
the prior year quarter on an as-reported basis. This represents a
30-cent or 25.4% increase over the
prior year quarter. Diluted EPS increased 33
cents or 28.7% from $1.15 in
the prior year quarter on an as-adjusted basis. This increase was
driven by the increase in net income as well as lower diluted share
count, primarily as a result of ongoing share repurchases. See the
Items Affecting Comparability section and the Comments on
Regulation G section for additional details.
The table below outlines certain statistical measures utilized
by the Company to analyze its performance. Refer to the Comments
on Regulation G section on page four for additional
details.
|
|
Fiscal Quarter
of 2016
|
|
Fiscal
2016
|
|
Same store sales
growth: (versus prior year period)
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
+ 13.7%
|
|
+ 10.4%
|
|
Domestic franchise
stores
|
|
+ 12.1%
|
|
+ 10.5%
|
|
Domestic
stores
|
|
+ 12.2%
|
|
+ 10.5%
|
|
International stores
(excluding foreign currency impact)
|
|
+ 4.3%
|
|
+ 6.3%
|
|
|
|
|
|
|
|
Global retail
sales growth: (versus prior year period)
|
|
|
|
|
|
Domestic
stores
|
|
+ 8.9%
|
|
+ 10.9%
|
|
International
stores
|
|
+ 5.3%
|
|
+ 8.8%
|
|
Total
|
|
+ 7.0%
|
|
+ 9.8%
|
|
|
|
|
|
|
|
Global retail
sales growth: (versus prior year period,
excluding foreign currency impact)
|
|
|
|
|
|
Domestic
stores
|
|
+ 8.9%
|
|
+ 10.9%
|
|
International
stores
|
|
+ 10.4%
|
|
+ 14.5%
|
|
Total
|
|
+ 9.7%
|
|
+ 12.8%
|
|
|
|
Domestic
Company-
owned
Stores
|
|
Domestic
Franchise
Stores
|
|
Total
Domestic
Stores
|
|
International
Stores
|
|
Total
|
Store
counts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store count at
September 11, 2016
|
|
|
387
|
|
|
4,886
|
|
|
5,273
|
|
|
7,979
|
|
|
13,252
|
Openings
|
|
|
6
|
|
|
98
|
|
|
104
|
|
|
487
|
|
|
591
|
Closings
|
|
|
(1)
|
|
|
(5)
|
|
|
(6)
|
|
|
(26)
|
|
|
(32)
|
Store count at January
1, 2017
|
|
|
392
|
|
|
4,979
|
|
|
5,371
|
|
|
8,440
|
|
|
13,811
|
Fourth quarter 2016
net change
|
|
|
5
|
|
|
93
|
|
|
98
|
|
|
461
|
|
|
559
|
Fiscal 2016 net
change
|
|
|
8
|
|
|
163
|
|
|
171
|
|
|
1,110
|
|
|
1,281
|
Conference Call Information
The Company will file its
annual report on Form 10-K this morning. As previously
announced, Domino's Pizza, Inc. will hold a conference call
today at 10 a.m. (Eastern) to
review its fiscal 2016 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. The webcast will also be archived for
one year on biz.dominos.com.
Dividends
On February 15,
2017, the Board of Directors declared a 46-cent per share quarterly dividend for
shareholders of record as of March 15,
2017, to be paid on March 30,
2017. This represents a 21.1% increase over the previous
quarterly dividend amount.
Share Repurchases
During the fourth quarter, the
Company repurchased and retired 102,394 shares of its common stock
under its open market share repurchase program for $16.4 million. Subsequent to the fourth quarter,
the Company repurchased and retired 80,360 shares for $12.7 million, or an average price of
$158.30 per share. As of February 21, 2017, the Company had a total
remaining authorized amount for share repurchases of $136.4 million.
Items Affecting Comparability
The Company's reported
financial results for the fourth quarter and fiscal 2016 are not
comparable to the reported financial results for the equivalent
periods in 2015. The table below presents certain items that affect
comparability between 2016 and 2015 financial results. Management
believes that including such information is critical to the
understanding of its financial results for the fourth quarter and
fiscal 2016 as compared to the same periods in 2015 (see the
Comments on Regulation G section on pages four and five for
additional details).
In addition to the items noted in the table below, the Company
had lower weighted average diluted shares outstanding in 2016 that
resulted in an increase in diluted EPS by an estimated 12 cents in the fourth quarter of 2016 and an
estimated 43 cents in fiscal 2016.
The Company incurred less interest expense in fiscal 2016 primarily
as a result of lower net debt levels and higher interest expense in
2015 related to the Company's recapitalization. The decrease in
interest expense resulted in a decrease in diluted EPS by an
estimated three cents in the fourth
quarter of 2016 and an estimated 22
cents in fiscal 2016.
|
|
Fourth
Quarter
|
|
Full
Year
|
(in thousands,
except per share data)
|
|
Pre-tax
|
|
After-tax
|
|
Diluted
EPS
Impact
|
|
Pre-tax
|
|
After-tax
|
|
Diluted
EPS
Impact
|
2015 items
affecting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recapitalization
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses (1)
|
|
$
|
(860)
|
|
$
|
(539)
|
|
$
|
(0.01)
|
|
$
|
(860)
|
|
$
|
(539)
|
|
$
|
(0.01)
|
Interest expense
(2)
|
|
|
(405)
|
|
|
(254)
|
|
|
(0.00)
|
|
|
(405)
|
|
|
(254)
|
|
|
(0.00)
|
Debt issuance cost
write-off (3)
|
|
|
(6,870)
|
|
|
(4,305)
|
|
|
(0.08)
|
|
|
(6,870)
|
|
|
(4,305)
|
|
|
(0.08)
|
Subtotal
|
|
|
(8,135)
|
|
|
(5,098)
|
|
|
(0.10)
|
|
|
(8,135)
|
|
|
(5,098)
|
|
|
(0.09)
|
Estimated
53rd week impact (4)
|
|
|
10,131
|
|
|
6,348
|
|
|
0.12
|
|
|
10,131
|
|
|
6,348
|
|
|
0.11
|
Total of 2015
items
|
|
$
|
1,996
|
|
$
|
1,250
|
|
$
|
0.02
|
|
$
|
1,996
|
|
$
|
1,250
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
legal, professional and administrative fees incurred in connection
with the Company's 2015 recapitalization.
(2) Represents interest expense the Company incurred on a
portion its 2012 borrowings subsequent to the closing of the 2015
recapitalization but prior to the repayment of a portion of the
2012 borrowings, resulting in the payment of interest on both the
2012 and 2015 facilities for a short period of time.
(3) Represents the write-off of debt issuance costs related
to the extinguishment of a portion of the 2012 debt in connection
with the Company's 2015 recapitalization.
(4) Represents the estimated impact on income of the
53rd week in the fourth quarter and fiscal
2015.
|
Three- to Five-Year Outlook
The Company does not
provide quarterly or annual earnings estimates. The following
outlook does not constitute specific earnings guidance. In
January 2017, the Company provided a
three- to five-year outlook as follows:
|
Current
Outlook
|
|
Prior
Outlook
|
|
|
|
|
Domestic same store
sales growth
|
3% – 6%
|
|
2% – 5%
|
International same
store sales growth
|
3% – 6%
|
|
3% – 6%
|
Net unit
growth
|
6% – 8%
|
|
5% – 7%
|
Global retail sales
growth
|
8% – 12%
|
|
7% – 11%
|
Liquidity
As of January 1,
2017, the Company had approximately:
- $42.8 million of unrestricted
cash and cash equivalents;
- $2.19 billion in total debt;
and
- $80.7 million of available
borrowings under its $125.0 million
variable funding notes. Letters of credit issued under the
Company's variable funding note facility were $44.3 million.
The Company invested $58.6 million
in capital expenditures during fiscal 2016, versus $63.3 million in fiscal 2015. Free cash flow, as
reconciled below to cash flows from operations as determined under
generally accepted accounting principles (GAAP), was approximately
$228.7 million in fiscal 2016.
(in
thousands)
|
|
|
Fiscal
2016
|
Net cash provided by
operating activities
|
|
$
|
287,273
|
Capital
expenditures
|
|
|
(58,555)
|
Free cash
flow
|
|
$
|
228,718
|
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, including free cash flow metrics and measures related
to items affecting comparability between fiscal quarters and fiscal
years. 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 periods 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 13,800 stores in over 85 markets. Domino's had global
retail sales of nearly $10.9 billion
in 2016, with more than $5.3 billion
in the U.S. and more than $5.5
billion internationally. In the fourth quarter of 2016,
Domino's had global retail sales of nearly $3.6 billion, with over $1.7 billion in the U.S. and over $1.8 billion internationally. Its system is
comprised of independent franchise owners who accounted for over
97% of Domino's stores as of the fourth quarter of 2016. Emphasis
on technology innovation helped Domino's reach an estimated
$5.6 billion in global digital sales
in 2016, and has produced several innovative ordering platforms
including Google Home, Facebook Messenger, Apple Watch, Amazon
Echo, Twitter and text message using a pizza emoji. In late 2015,
Domino's announced the design and launch of the DXP®, a
purpose-built pizza delivery vehicle, as well as Piece of the Pie
Rewards™, its first digital customer loyalty program.
Order – dominos.com
AnyWare Ordering – anyware.dominos.com
Company Info – biz.dominos.com
Twitter – twitter.com/dominos
Facebook – facebook.com/dominos
Instagram – instagram.com/dominos
YouTube – 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; 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;
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 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 consumer confidence; availability
of borrowings under our variable funding notes and our letters of
credit; our ability to pay dividends and repurchase shares; 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.
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Income (Unaudited)
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
January
1,
2017
|
|
%
of
Total
Revenues
|
|
January
3,
2016
|
|
%
of
Total
Revenues
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
$
|
143,781
|
|
|
|
|
$
|
129,291
|
|
|
|
Domestic
franchise
|
|
103,797
|
|
|
|
|
|
90,822
|
|
|
|
Supply
chain
|
|
514,355
|
|
|
|
|
|
465,011
|
|
|
|
International
franchise
|
|
57,502
|
|
|
|
|
|
56,059
|
|
|
|
Total
revenues
|
|
819,435
|
|
|
100.0%
|
|
|
741,183
|
|
|
100.0%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
108,089
|
|
|
|
|
|
95,028
|
|
|
|
Supply
chain
|
|
456,612
|
|
|
|
|
|
414,716
|
|
|
|
Total cost of
sales
|
|
564,701
|
|
|
68.9%
|
|
|
509,744
|
|
|
68.8%
|
Operating
margin
|
|
254,734
|
|
|
31.1%
|
|
|
231,439
|
|
|
31.2%
|
General and
administrative
|
|
104,017
|
|
|
12.7%
|
|
|
93,027
|
|
|
12.6%
|
Income from
operations
|
|
150,717
|
|
|
18.4%
|
|
|
138,412
|
|
|
18.6%
|
Interest expense,
net
|
|
(33,407)
|
|
|
(4.1)%
|
|
|
(40,285)
|
|
|
(5.4)%
|
Income before
provision for income taxes
|
|
117,310
|
|
|
14.3%
|
|
|
98,127
|
|
|
13.24%
|
Provision for income
taxes
|
|
44,576
|
|
|
5.4%
|
|
|
35,368
|
|
|
4.7%
|
Net income
|
$
|
72,734
|
|
|
8.9%
|
|
$
|
62,759
|
|
|
8.5%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
$
|
1.48
|
|
|
|
|
$
|
1.18
|
|
|
|
Dividends declared
per share
|
$
|
0.38
|
|
|
|
|
$
|
0.31
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Income (Unaudited)
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
January
1,
2017
|
|
|
%
of
Total
Revenues
|
|
|
January
3,
2016
|
|
|
%
of
Total
Revenues
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
$
|
439,024
|
|
|
|
|
|
|
$
|
396,916
|
|
|
|
|
Domestic
franchise
|
|
|
312,260
|
|
|
|
|
|
|
|
272,808
|
|
|
|
|
Supply
chain
|
|
|
1,544,345
|
|
|
|
|
|
|
|
1,383,161
|
|
|
|
|
International
franchise
|
|
|
176,999
|
|
|
|
|
|
|
|
163,643
|
|
|
|
|
Total
revenues
|
|
|
2,472,628
|
|
|
|
100.0%
|
|
|
|
2,216,528
|
|
|
|
100.0%
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Company-owned
stores
|
|
|
331,860
|
|
|
|
|
|
|
|
299,294
|
|
|
|
|
Supply
chain
|
|
|
1,373,077
|
|
|
|
|
|
|
|
1,234,103
|
|
|
|
|
Total cost of
sales
|
|
|
1,704,937
|
|
|
|
69.0%
|
|
|
|
1,533,397
|
|
|
|
69.2%
|
Operating
margin
|
|
|
767,691
|
|
|
|
31.0%
|
|
|
|
683,131
|
|
|
|
30.8%
|
General and
administrative
|
|
|
313,649
|
|
|
|
12.7%
|
|
|
|
277,692
|
|
|
|
12.5%
|
Income from
operations
|
|
|
454,042
|
|
|
|
18.3%
|
|
|
|
405,439
|
|
|
|
18.3%
|
Interest expense,
net
|
|
|
(109,384)
|
|
|
|
(4.4)%
|
|
|
|
(99,224)
|
|
|
|
(4.5)%
|
Income before
provision for income taxes
|
|
|
344,658
|
|
|
|
13.9%
|
|
|
|
306,215
|
|
|
|
13.8%
|
Provision for income
taxes
|
|
|
129,980
|
|
|
|
5.2%
|
|
|
|
113,426
|
|
|
|
5.1%
|
Net income
|
|
$
|
214,678
|
|
|
|
8.7%
|
|
|
$
|
192,789
|
|
|
|
8.7%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock –
diluted
|
|
$
|
4.30
|
|
|
|
|
|
|
$
|
3.47
|
|
|
|
|
Dividends declared
per share
|
|
$
|
1.52
|
|
|
|
|
|
|
$
|
1.24
|
|
|
|
|
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Income (Unaudited)
|
|
|
|
|
|
|
|
|
January 1,
2017
|
|
January 3,
2016
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
42,815
|
|
$
|
133,449
|
|
Restricted cash and
cash equivalents
|
|
|
126,496
|
|
|
180,940
|
|
Accounts
receivable
|
|
|
150,369
|
|
|
131,582
|
|
Inventories
|
|
|
40,181
|
|
|
36,861
|
|
Advertising fund
assets, restricted
|
|
|
118,377
|
|
|
99,159
|
|
Prepaid expenses and
other
|
|
|
17,635
|
|
|
20,646
|
|
Total current
assets
|
|
|
495,873
|
|
|
602,637
|
|
Property, plant and
equipment, net
|
|
|
138,534
|
|
|
131,890
|
|
Other
assets
|
|
|
81,888
|
|
|
65,318
|
|
Total
assets
|
|
$
|
716,295
|
|
$
|
799,845
|
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
38,887
|
|
$
|
59,333
|
|
Accounts
payable
|
|
|
111,510
|
|
|
106,927
|
|
Advertising fund
liabilities
|
|
|
118,377
|
|
|
99,159
|
|
Other accrued
liabilities
|
|
|
134,924
|
|
|
110,564
|
|
Total current
liabilities
|
|
|
403,698
|
|
|
375,983
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
2,148,990
|
|
|
2,181,460
|
|
Other accrued
liabilities
|
|
|
46,750
|
|
|
42,653
|
|
Total long-term
liabilities
|
|
|
2,195,740
|
|
|
2,224,113
|
|
Total stockholders'
deficit
|
|
|
(1,883,143)
|
|
|
(1,800,251)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
716,295
|
|
$
|
799,845
|
|
Domino's Pizza,
Inc. and Subsidiaries Condensed Consolidated Statements
of Cash Flows (Unaudited)
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
January
1,
2017
|
|
January
3,
2016
|
(In
thousands)
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
214,678
|
|
$
|
192,789
|
Adjustments to
reconcile net income to net cash flows provided by
operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
38,140
|
|
|
32,434
|
Losses on
sale/disposal of assets
|
|
|
863
|
|
|
316
|
Amortization of debt
issuance costs
|
|
|
6,418
|
|
|
12,393
|
Provision (benefit)
for deferred income taxes
|
|
|
(3,059)
|
|
|
1,713
|
Non-cash compensation
expense
|
|
|
18,564
|
|
|
17,623
|
Tax impact from
equity-based compensation
|
|
|
(48,129)
|
|
|
(17,775)
|
Other
|
|
|
(224)
|
|
|
(1,084)
|
Changes in operating
assets and liabilities
|
|
|
60,022
|
|
|
53,377
|
Net cash provided by
operating activities
|
|
|
287,273
|
|
|
291,786
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(58,555)
|
|
|
(63,282)
|
Proceeds from sale of
assets
|
|
|
4,936
|
|
|
12,724
|
Changes in restricted
cash
|
|
|
54,444
|
|
|
(59,986)
|
Other
|
|
|
(1,661)
|
|
|
1,252
|
Net cash used in
investing activities
|
|
|
(836)
|
|
|
(109,292)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
|
63,000
|
|
|
1,305,000
|
Repayments of
long-term debt and capital lease obligations
|
|
|
(122,334)
|
|
|
(564,403)
|
Proceeds from exercise
of stock options
|
|
|
15,234
|
|
|
4,814
|
Tax impact from
equity-based compensation
|
|
|
48,129
|
|
|
17,775
|
Purchases of common
stock
|
|
|
(300,250)
|
|
|
(738,557)
|
Tax payments for
restricted stock upon vesting
|
|
|
(5,646)
|
|
|
(7,431)
|
Payments of common
stock dividends and equivalents
|
|
|
(73,925)
|
|
|
(80,329)
|
Cash paid for
financing costs
|
|
|
–
|
|
|
(17,367)
|
Other
|
|
|
–
|
|
|
(438)
|
Net cash used in
financing activities
|
|
|
(375,792)
|
|
|
(80,936)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(1,279)
|
|
|
1,036
|
Change in cash and
cash equivalents
|
|
|
(90,634)
|
|
|
102,594
|
Cash and cash
equivalents, at beginning of period
|
|
|
133,449
|
|
|
30,855
|
Cash and cash
equivalents, at end of period
|
|
$
|
42,815
|
|
$
|
133,449
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dominos-pizza-announces-2016-financial-results-300414665.html
SOURCE Domino's Pizza, Inc.