Exhibit 99.1
| For Immediate Release | Contact: Ryan Goers VP - Finance & IR (734) 930-3925 |
Domino’s Pizza® Announces Second Quarter 2023 Financial Results
Global retail sales growth (excluding foreign currency impact) of 5.8%
U.S. same store sales growth of 0.1%
International same store sales growth (excluding foreign currency impact) of 3.6%
Global net store growth of 197
Diluted EPS up 9.2% to $3.08
ANN ARBOR, Michigan, July 24, 2023: Domino’s Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the second quarter of 2023. Global retail sales grew 5.8% in the second quarter of 2023, excluding the negative impact of foreign currency. Without adjusting for the impact of foreign currency, global retail sales grew 4.3% in the second quarter of 2023.
U.S. same store sales grew 0.1% during the second quarter of 2023. International same store sales (excluding foreign currency impact) grew 3.6% during the second quarter of 2023. The Company had second quarter global net store growth of 197 stores, comprised of 27 net U.S. store openings and 170 net international store openings. The Company had 253 gross store openings and 56 closures during the second quarter of 2023. Diluted EPS for the second quarter of 2023 was $3.08, an increase of 9.2% over the prior year quarter.
Subsequent to the end of the second quarter of 2023, on July 20, 2023, the Company’s Board of Directors declared a $1.21 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2023, to be paid on September 29, 2023.
The Company will host its Investor Day on December 7, 2023 at the Company’s headquarters in Ann Arbor, Michigan.
“We are executing our plan to restore delivery growth in the U.S.,” said Russell Weiner, Domino’s Chief Executive Officer. “Our efforts to improve service and staffing while driving value and innovation will continue to make a difference in driving order counts in this important part of our business. We will also benefit globally from the deal we recently announced with Uber. Over two-thirds of our stores around the world will have the ability to take orders from Uber Eats. We are excited to strategically enter the multi-billion dollar aggregator marketplace as the number one pizza brand in the world.”
Second Quarter Highlights (Unaudited):
(in thousands, except share and per share data) |
| Second |
|
| Second |
|
| Two Fiscal |
|
| Two Fiscal |
| ||||
Net income |
| $ | 109,380 |
|
| $ | 102,493 |
|
| $ | 214,150 |
|
| $ | 193,457 |
|
Weighted average diluted shares |
|
| 35,492,423 |
|
|
| 36,296,277 |
|
|
| 35,601,335 |
|
|
| 36,368,297 |
|
Diluted EPS |
| $ | 3.08 |
|
| $ | 2.82 |
|
| $ | 6.02 |
|
| $ | 5.32 |
|
The tables below outline certain statistical measures utilized by the Company to analyze its performance (unaudited). Refer to Comments on Regulation G below for additional details.
|
| Second |
| Second |
| Two Fiscal |
| Two Fiscal |
Same store sales growth: (versus prior year period) |
|
|
|
|
|
|
|
|
U.S. Company-owned stores |
| + 5.5% |
| (9.2)% |
| + 6.4% |
| (9.8)% |
U.S. franchise stores |
| (0.1)% |
| (2.5)% |
| + 1.6% |
| (2.9)% |
U.S. stores |
| + 0.1% |
| (2.9)% |
| + 1.8% |
| (3.3)% |
International stores (excluding foreign currency impact) |
| + 3.6% |
| (2.2)% |
| + 2.3% |
| (0.5)% |
|
|
|
|
|
|
|
| |
Global retail sales growth: (versus prior year period) |
|
|
|
|
|
|
|
|
U.S. stores |
| + 1.7% |
| (0.6)% |
| + 3.4% |
| (1.0)% |
International stores |
| + 6.9% |
| (5.4)% |
| + 3.1% |
| (1.8)% |
Total |
| + 4.3% |
| (3.0)% |
| + 3.2% |
| (1.4)% |
|
|
|
|
|
|
|
| |
Global retail sales growth: (versus prior year period, |
|
|
|
|
|
|
|
|
U.S. stores |
| + 1.7% |
| (0.6)% |
| + 3.4% |
| (1.0)% |
International stores |
| + 10.1% |
| + 3.7% |
| + 8.3% |
| + 6.0% |
Total |
| + 5.8% |
| + 1.5% |
| + 5.8% |
| + 2.5% |
|
| U.S. Company- |
|
| U.S. Franchise |
|
| Total |
|
| International |
|
| Total |
| |||||
Store counts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Store count at March 26, 2023 |
|
| 285 |
|
|
| 6,423 |
|
|
| 6,708 |
|
|
| 13,300 |
|
|
| 20,008 |
|
Openings |
|
| 1 |
|
|
| 29 |
|
|
| 30 |
|
|
| 223 |
|
|
| 253 |
|
Closings |
|
| — |
|
|
| (3 | ) |
|
| (3 | ) |
|
| (53 | ) |
|
| (56 | ) |
Store count at June 18, 2023 |
|
| 286 |
|
|
| 6,449 |
|
|
| 6,735 |
|
|
| 13,470 |
|
|
| 20,205 |
|
Second quarter 2023 net store growth |
|
| 1 |
|
|
| 26 |
|
|
| 27 |
|
|
| 170 |
|
|
| 197 |
|
Trailing four quarters net store growth |
|
| — |
|
|
| 116 |
|
|
| 116 |
|
|
| 795 |
|
|
| 911 |
|
Share Repurchases
During the second quarter of 2023, the Company repurchased and retired 292,030 shares of common stock for a total of $90.8 million. As of June 18, 2023, the Company had a total remaining authorized amount for share repurchases of $289.5 million.
Liquidity
As of June 18, 2023, the Company had approximately:
Net cash provided by operating activities was $242.3 million during the two fiscal quarters of 2023 as compared to $153.4 million during the two fiscal quarters of 2022. The Company invested $38.0 million in capital expenditures during the two fiscal quarters of 2023 as compared to $32.7 million during the two fiscal quarters of 2022.
Free cash flow, as reconciled below to net cash provided by operating activities, as determined under accounting principles generally accepted in the United States of America (“GAAP”), was approximately $204.3 million during the two fiscal quarters of 2023 as compared to $120.8 million during the two fiscal quarters of 2022 (refer to Comments on Regulation G below for additional details).
(In thousands) |
| Two Fiscal |
|
| Two Fiscal |
| ||
Net cash provided by operating activities |
| $ | 242,291 |
|
| $ | 153,415 |
|
Capital expenditures |
|
| (37,980 | ) |
|
| (32,664 | ) |
Free cash flow |
| $ | 204,311 |
|
| $ | 120,751 |
|
Free cash flow increased $83.6 million in the two fiscal quarters of 2023 as compared to the two fiscal quarters of 2022, primarily due to the positive impact of changes in operating assets and liabilities and higher net income, partially offset by higher investments in capital expenditures.
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 and the effective tax rate, excluding tax benefits or deficiencies from equity-based compensation. The Company has also included metrics such as global retail sales, global retail sales growth, global retail sales growth, excluding foreign currency impact, same store sales growth, market basket pricing change and the impact of foreign currency exchange rates on international franchise royalty revenues which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance.
The Company uses “Global retail sales,” a statistical measure, 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 and advertising fees 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. “Global retail sales growth” is calculated as the change of U.S. Dollar global retail sales against the comparable period of the prior year. “Global retail sales growth, excluding foreign currency impact” is calculated as the change of international local currency global retail sales against the comparable period of the prior year.
The Company uses “Same store sales growth,” a statistical measure, which is calculated by including only sales from stores that also had sales in the comparable weeks of both periods. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales. Same store sales growth for transferred stores is reflected in their current classification.
The Company uses “Net store growth," a statistical measure, which is calculated by netting gross store openings with gross store closures during the period. Transfers between Company-owned stores and franchised stores are excluded from the calculation of net store growth.
The Company uses “Market basket pricing change,” a statistical measure, which is calculated as the percentage change of the market basket purchased by an average U.S. store (based on average weekly unit sales) from U.S. supply chain centers against the comparable period of the prior year. The Company believes that the market basket pricing change is important to investors and other interested persons to understand the Company’s performance. As market basket prices fluctuate, revenues, cost of sales and gross margin percentages in the Company’s supply chain segment also fluctuate. Additionally, cost of sales, gross margins and gross margin percentages for the Company’s U.S. Company-owned stores also fluctuate.
The Company uses “Impact of changes in foreign currency exchange rates on international franchise royalty revenues,” a statistical measure, which is calculated as the difference in international franchise royalty revenues resulting from translating current period local currency results to U.S. dollars at current period exchange rates as compared to prior period exchange rates. The Company believes that the impact of changes in foreign currency exchange rates on international franchise royalty revenues is important to investors and other interested persons to understand the Company’s international royalty revenues given the significant variability in those revenues that can be driven by changes in foreign currency exchanges rates.
The Company uses “Free cash flow,” which is calculated as net cash provided by operating activities, less capital expenditures, both as reported under GAAP. The most directly comparable financial measure calculated and presented in accordance with GAAP is net cash provided by operating activities. 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 or paying dividends.
The Company uses the “Effective tax rate, excluding excess tax benefits or deficiencies from equity-based compensation,” which is calculated as the Company’s provision for income taxes, less excess tax benefits or deficiencies from equity-based compensation, both as reported under GAAP, divided by the Company’s income before provision for income taxes, as reported under GAAP. Excess tax benefits or deficiencies from equity-based compensation are recorded as a reduction (increase) to the Company’s provision for income taxes. The most directly comparable financial measure calculated and presented in accordance with GAAP is the effective tax rate. The Company believes that the effective tax rate, excluding excess tax benefits or deficiencies from equity-based compensation is important to investors and other interested persons to understand the Company’s effective tax rate excluding the significant variability in the effective tax rate that can be driven by changes in stock award activity from period to period.
Conference Call Information
The Company will file its Quarterly Report on Form 10-Q today. As previously announced, Domino’s Pizza, Inc. will hold a conference call today at 8:30 a.m. (Eastern) to review its second quarter 2023 financial results. The webcast is available at ir.dominos.com and will be archived for one year.
About Domino’s Pizza®
Founded in 1960, Domino’s Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout pizza. It ranks among the world’s top public restaurant brands with a global enterprise of more than 20,000 stores in over 90 markets. Domino’s had global retail sales of over $17.5 billion in 2022, with over $8.7 billion in the U.S. and nearly $8.8 billion internationally. In the second quarter of 2023, Domino’s had global retail sales of over $4.2 billion, with nearly $2.1 billion in the U.S. and over $2.1 billion internationally. Its system is comprised of independent franchise owners who accounted for 99% of Domino’s stores as of the end of the second quarter of 2023. Emphasis on technology innovation helped Domino’s achieve approximately two-thirds of all global retail sales in 2022 from digital channels. In the U.S., Domino’s generated more than 80% of U.S. retail sales in 2022 via digital channels and has developed several innovative ordering platforms, including those for Apple CarPlay, Amazon Alexa, text-to-order and more. In 2023, Domino’s launched Pinpoint Delivery, a new technology that allows customers to receive a delivery nearly anywhere, including places like parks, baseball fields and beaches.
Order – dominos.com
Company Info – biz.dominos.com
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Please visit our Investor Relations website at ir.dominos.com to view news, announcements, earnings releases, investor presentations and conference webcasts.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
This press release contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) that are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the “safe harbor” provisions of the Act. You can identify forward-looking statements by the use of words such as “anticipates,” “believes,” “could,” “should,” “estimates,” “expects,” “intends,” “may,” “will,” “plans,” “predicts,” “projects,” “seeks,” “approximately,” “potential,” “outlook” and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. These forward-looking statements address various matters including information concerning future results of operations and business strategy, our anticipated profitability, estimates in same store sales growth, store growth and the growth of our U.S. and international business in general, our 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. While we believe these expectations and projections are based on reasonable assumptions, such forward-looking statements are inherently subject to risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from our expectations are more fully described in our filings with the Securities and Exchange Commission, including under the section headed “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 1, 2023. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including but not limited to: our substantial increased indebtedness as a result of our recapitalization transactions and our ability to incur additional indebtedness or refinance or renegotiate key terms of that indebtedness in the future; the impact a downgrade in our credit rating may have on our business, financial condition and results of operations; our future financial performance and our ability to pay principal and interest on our indebtedness; the strength of our brand, including our ability to compete in the U.S. and internationally in our intensely competitive industry, including the food service and food delivery markets; our ability to successfully implement our growth strategy; labor shortages or changes in operating expenses resulting from increases in prices of food (particularly cheese), fuel and other commodity costs, labor, utilities, insurance, employee benefits and other operating costs or negative economic conditions; our ability to manage difficulties associated with or related to the COVID-19 pandemic and the effects of COVID-19 and related regulations and policies on our business and supply chain, including impacts on the availability of labor; the effectiveness of our advertising, operations and promotional initiatives; shortages, interruptions or disruptions in the supply or delivery of fresh food products and store equipment; the impact of social media and other consumer-oriented technologies on our business, brand and reputation; the impact of new or improved technologies and alternative methods of delivery on consumer behavior; new product, digital ordering and concept developments by us, and other food-industry competitors; our ability to maintain good relationships with and attract new franchisees, and franchisees’ ability to successfully manage their operations without negatively impacting our royalty payments and fees or our brand’s reputation; our ability to successfully implement cost-saving strategies; our ability and that of our franchisees to successfully operate in the current and future credit environment; changes in the level of consumer spending given general economic conditions, including interest rates, energy prices and consumer confidence or negative economic conditions in general; our ability and that of our franchisees to open new restaurants and keep existing restaurants in operation and maintain demand for new stores; the impact that widespread illness, health epidemics or general health concerns, severe weather conditions and natural disasters may have on our business and the economies of the countries where we operate; changes in foreign currency exchange rates; changes in income tax rates; our ability to retain or replace our executive officers and other key members of management and our ability to adequately staff our stores and supply chain centers with qualified personnel; our ability to find and/or retain suitable real estate for our stores and supply chain centers; changes in government legislation and regulations, including changes in laws and regulations regarding information privacy, payment methods and consumer protection and social media; adverse legal judgments or settlements; food-borne illness or contamination of products or food tampering or other events that may impact our reputation; data breaches, power loss, technological failures, user error or other cyber risks threatening us or our franchisees; the impact that environmental, social and governance matters may have on our business and reputation; the effect of war, terrorism, catastrophic events or climate change; our ability to pay dividends and repurchase shares; changes in consumer tastes, spending and traffic patterns and demographic trends; changes in accounting policies; and adequacy of our insurance coverage. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. All forward-looking statements speak only as of the date of this press release and should be evaluated with an understanding of their inherent uncertainty. Except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, or other applicable law, we will not undertake, and specifically disclaim, any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, us. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
TABLES TO FOLLOW
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
|
| Fiscal Quarter Ended |
| |||||||||||||
|
| June 18, |
|
| % of |
|
| June 19, |
|
| % of |
| ||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
U.S. Company-owned stores |
| $ | 87,694 |
|
|
|
|
| $ | 112,502 |
|
|
|
| ||
U.S. franchise royalties and fees |
|
| 139,268 |
|
|
|
|
|
| 128,098 |
|
|
|
| ||
Supply chain |
|
| 615,711 |
|
|
|
|
|
| 646,586 |
|
|
|
| ||
International franchise royalties and fees |
|
| 70,495 |
|
|
|
|
|
| 66,915 |
|
|
|
| ||
U.S. franchise advertising |
|
| 111,459 |
|
|
|
|
|
| 111,081 |
|
|
|
| ||
Total revenues |
|
| 1,024,627 |
|
|
| 100.0 | % |
|
| 1,065,182 |
|
|
| 100.0 | % |
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
U.S. Company-owned stores |
|
| 71,423 |
|
|
|
|
|
| 94,065 |
|
|
|
| ||
Supply chain |
|
| 548,548 |
|
|
|
|
|
| 584,852 |
|
|
|
| ||
Total cost of sales |
|
| 619,971 |
|
|
| 60.5 | % |
|
| 678,917 |
|
|
| 63.7 | % |
Gross margin |
|
| 404,656 |
|
|
| 39.5 | % |
|
| 386,265 |
|
|
| 36.3 | % |
General and administrative |
|
| 97,794 |
|
|
| 9.5 | % |
|
| 97,070 |
|
|
| 9.2 | % |
U.S. franchise advertising |
|
| 111,459 |
|
|
| 10.9 | % |
|
| 111,081 |
|
|
| 10.4 | % |
Income from operations |
|
| 195,403 |
|
|
| 19.1 | % |
|
| 178,114 |
|
|
| 16.7 | % |
Other expense |
|
| (14,964 | ) |
|
| (1.5 | )% |
|
| — |
|
|
| 0.0 | % |
Interest expense, net |
|
| (42,395 | ) |
|
| (4.1 | )% |
|
| (44,632 | ) |
|
| (4.2 | )% |
Income before provision for income taxes |
|
| 138,044 |
|
|
| 13.5 | % |
|
| 133,482 |
|
|
| 12.5 | % |
Provision for income taxes |
|
| 28,664 |
|
|
| 2.8 | % |
|
| 30,989 |
|
|
| 2.9 | % |
Net income |
| $ | 109,380 |
|
|
| 10.7 | % |
| $ | 102,493 |
|
|
| 9.6 | % |
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Common stock – diluted |
| $ | 3.08 |
|
|
|
|
| $ | 2.82 |
|
|
|
| ||
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
|
| Two Fiscal Quarters Ended |
| |||||||||||||
|
| June 18, |
|
| % of |
|
| June 19, |
|
| % of |
| ||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
U.S. Company-owned stores |
| $ | 172,605 |
|
|
|
|
| $ | 216,397 |
|
|
|
| ||
U.S. franchise royalties and fees |
|
| 272,132 |
|
|
|
|
|
| 250,383 |
|
|
|
| ||
Supply chain |
|
| 1,239,937 |
|
|
|
|
|
| 1,256,133 |
|
|
|
| ||
International franchise royalties and fees |
|
| 140,166 |
|
|
|
|
|
| 135,748 |
|
|
|
| ||
U.S. franchise advertising |
|
| 224,185 |
|
|
|
|
|
| 217,670 |
|
|
|
| ||
Total revenues |
|
| 2,049,025 |
|
|
| 100.0 | % |
|
| 2,076,331 |
|
|
| 100.0 | % |
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
U.S. Company-owned stores |
|
| 141,995 |
|
|
|
|
|
| 181,440 |
|
|
|
| ||
Supply chain |
|
| 1,116,827 |
|
|
|
|
|
| 1,140,002 |
|
|
|
| ||
Total cost of sales |
|
| 1,258,822 |
|
|
| 61.4 | % |
|
| 1,321,442 |
|
|
| 63.6 | % |
Gross margin |
|
| 790,203 |
|
|
| 38.6 | % |
|
| 754,889 |
|
|
| 36.4 | % |
General and administrative |
|
| 192,983 |
|
|
| 9.4 | % |
|
| 194,564 |
|
|
| 9.4 | % |
U.S. franchise advertising |
|
| 224,185 |
|
|
| 11.0 | % |
|
| 217,670 |
|
|
| 10.5 | % |
Refranchising loss |
|
| 149 |
|
|
| 0.0 | % |
|
| — |
|
|
| 0.0 | % |
Income from operations |
|
| 372,886 |
|
|
| 18.2 | % |
|
| 342,655 |
|
|
| 16.5 | % |
Other expense |
|
| (14,964 | ) |
|
| (0.7 | )% |
|
| — |
|
|
| 0.0 | % |
Interest expense, net |
|
| (86,551 | ) |
|
| (4.2 | )% |
|
| (91,455 | ) |
|
| (4.4 | )% |
Income before provision for income taxes |
|
| 271,371 |
|
|
| 13.3 | % |
|
| 251,200 |
|
|
| 12.1 | % |
Provision for income taxes |
|
| 57,221 |
|
|
| 2.8 | % |
|
| 57,743 |
|
|
| 2.8 | % |
Net income |
| $ | 214,150 |
|
|
| 10.5 | % |
| $ | 193,457 |
|
|
| 9.3 | % |
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Common stock – diluted |
| $ | 6.02 |
|
|
|
|
| $ | 5.32 |
|
|
|
| ||
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
|
| June 18, |
|
| January 1, |
| ||
(In thousands) |
|
|
|
|
|
| ||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 77,020 |
|
| $ | 60,356 |
|
Restricted cash and cash equivalents |
|
| 189,694 |
|
|
| 191,289 |
|
Accounts receivable, net |
|
| 260,024 |
|
|
| 257,492 |
|
Inventories |
|
| 65,627 |
|
|
| 81,570 |
|
Prepaid expenses and other |
|
| 53,201 |
|
|
| 37,287 |
|
Advertising fund assets, restricted |
|
| 154,052 |
|
|
| 162,660 |
|
Total current assets |
|
| 799,618 |
|
|
| 790,654 |
|
Property, plant and equipment, net |
|
| 295,935 |
|
|
| 302,235 |
|
Operating lease right-of-use assets |
|
| 213,817 |
|
|
| 219,202 |
|
Investment in DPC Dash |
|
| 110,876 |
|
|
| 125,840 |
|
Other assets |
|
| 175,924 |
|
|
| 164,290 |
|
Total assets |
| $ | 1,596,170 |
|
| $ | 1,602,221 |
|
Liabilities and stockholders’ deficit |
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
| ||
Current portion of long-term debt |
| $ | 55,745 |
|
| $ | 54,813 |
|
Accounts payable |
|
| 90,688 |
|
|
| 89,715 |
|
Operating lease liabilities |
|
| 37,611 |
|
|
| 34,877 |
|
Advertising fund liabilities |
|
| 150,365 |
|
|
| 157,909 |
|
Other accrued liabilities |
|
| 213,119 |
|
|
| 199,307 |
|
Total current liabilities |
|
| 547,528 |
|
|
| 536,621 |
|
Long-term liabilities: |
|
|
|
|
|
| ||
Long-term debt, less current portion |
|
| 4,944,678 |
|
|
| 4,967,420 |
|
Operating lease liabilities |
|
| 188,694 |
|
|
| 195,244 |
|
Other accrued liabilities |
|
| 81,836 |
|
|
| 92,001 |
|
Total long-term liabilities |
|
| 5,215,208 |
|
|
| 5,254,665 |
|
Total stockholders’ deficit |
|
| (4,166,566 | ) |
|
| (4,189,065 | ) |
Total liabilities and stockholders’ deficit |
| $ | 1,596,170 |
|
| $ | 1,602,221 |
|
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
| Two Fiscal Quarters Ended |
| |||||
|
| June 18, |
|
| June 19, |
| ||
(In thousands) |
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income |
| $ | 214,150 |
|
| $ | 193,457 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
| ||
Depreciation and amortization |
|
| 36,731 |
|
|
| 37,093 |
|
Refranchising loss |
|
| 149 |
|
|
| — |
|
Loss on sale/disposal of assets |
|
| 402 |
|
|
| 448 |
|
Amortization of debt issuance costs |
|
| 2,578 |
|
|
| 2,631 |
|
(Benefit) provision for deferred income taxes |
|
| (7,596 | ) |
|
| 2,490 |
|
Non-cash compensation expense |
|
| 17,065 |
|
|
| 15,738 |
|
Excess tax benefits from equity-based compensation |
|
| (133 | ) |
|
| (174 | ) |
Provision for losses on accounts and notes receivable |
|
| 1,166 |
|
|
| 2,326 |
|
Unrealized loss on investments |
|
| 14,964 |
|
|
| — |
|
Changes in operating assets and liabilities |
|
| (33,794 | ) |
|
| (102,935 | ) |
Changes in advertising fund assets and liabilities, restricted |
|
| (3,391 | ) |
|
| 2,341 |
|
Net cash provided by operating activities |
|
| 242,291 |
|
|
| 153,415 |
|
Cash flows from investing activities: |
|
|
|
|
|
| ||
Capital expenditures |
|
| (37,980 | ) |
|
| (32,664 | ) |
Purchase of franchise operations and other assets |
|
| — |
|
|
| (6,814 | ) |
Other |
|
| (1,211 | ) |
|
| (435 | ) |
Net cash used in investing activities |
|
| (39,191 | ) |
|
| (39,913 | ) |
Cash flows from financing activities: |
|
|
|
|
|
| ||
Repayments of long-term debt and finance lease obligations |
|
| (27,186 | ) |
|
| (27,528 | ) |
Proceeds from exercise of stock options |
|
| 1,051 |
|
|
| 526 |
|
Purchases of common stock |
|
| (120,847 | ) |
|
| (97,661 | ) |
Tax payments for restricted stock upon vesting |
|
| (3,068 | ) |
|
| (2,395 | ) |
Payments of common stock dividends and equivalents |
|
| (42,930 | ) |
|
| (39,662 | ) |
Net cash used in financing activities |
|
| (192,980 | ) |
|
| (166,720 | ) |
Effect of exchange rate changes on cash |
|
| 494 |
|
|
| (635 | ) |
Change in cash and cash equivalents, restricted cash and cash equivalents |
|
| 10,614 |
|
|
| (53,853 | ) |
|
|
|
|
|
| |||
Cash and cash equivalents, beginning of period |
|
| 60,356 |
|
|
| 148,160 |
|
Restricted cash and cash equivalents, beginning of period |
|
| 191,289 |
|
|
| 180,579 |
|
Cash and cash equivalents included in advertising fund assets, restricted, |
|
| 143,559 |
|
|
| 161,741 |
|
Cash and cash equivalents, restricted cash and cash equivalents and |
|
| 395,204 |
|
|
| 490,480 |
|
|
|
|
|
|
| |||
Cash and cash equivalents, end of period |
|
| 77,020 |
|
|
| 114,353 |
|
Restricted cash and cash equivalents, end of period |
|
| 189,694 |
|
|
| 158,215 |
|
Cash and cash equivalents included in advertising fund assets, restricted, |
|
| 139,104 |
|
|
| 164,059 |
|
Cash and cash equivalents, restricted cash and cash equivalents and cash and |
| $ | 405,818 |
|
| $ | 436,627 |
|
###