Papa John’s International, Inc. (Nasdaq: PZZA) (“Papa Johns®”)
(the “Company”) today announced financial results for the third
quarter ended September 29, 2024.
Highlights
- North America comparable sales(a) were down 6% from a year ago
as Domestic Company-owned restaurants were down 7% and North
America franchised restaurants were down 5%; International
comparable sales(a) were down 3% 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 $1.19 billion, a 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 $507 million were down 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 $65 million compared with $32
million a year ago, while Adjusted operating income(c) decreased $4
million to $29 million primarily related to lower Domestic
Company-owned restaurant-level margins, as anticipated, in the
third quarter.
- Diluted earnings per common share of $1.27 compared with $0.48
for the third quarter of 2023; Adjusted diluted earnings per common
share(c) was $0.43 compared with $0.53 for the third quarter a year
ago.
“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) North America and International
comparable sales are reported on a 13-week basis comparing July 1,
2024 through September 29, 2024 with July 3, 2023 through October
1, 2023.
(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,
2024
September 24,
2023
Increase (Decrease)
September 29,
2024
September 24,
2023
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 UK franchisee acquisitions that
occurred during the second and third quarters of 2023 and the UK
restaurant closures and refranchising transactions in the second
and third quarters of 2024.
Quarterly Results
Total revenues of $506.8 million decreased $16.0 million, or
3.1%, in the third quarter of 2024 compared with the prior year
period. The lower revenues were largely attributable to: 1) a $9.9
million decrease in International revenues primarily reflecting the
net impact of the UK Company-owned restaurants versus the prior
year period; 2) an $8.5 million decrease in Domestic Company-owned
restaurant sales reflecting lower transaction volumes; and, 3) a
$4.8 million decrease related to Preferred Marketing, our formerly
wholly-owned print and promotions company which was sold in the
fourth quarter of 2023. Partially offsetting these declines was a
$5.5 million increase in North America commissary revenues,
reflecting higher commodity prices, partially offset by lower
transaction volumes.
For the third quarter of 2024, Global system-wide restaurant
sales were $1.19 billion, down 3.0% from the prior year quarter
(excluding the impact of foreign currency). The decrease was due to
lower comparable sales, partially offset by 1.6% global net
restaurant growth on a trailing twelve-month basis.
Third quarter Operating income was $65.2 million, a $33.4
million increase compared with the prior year third quarter,
primarily due to $41.3 million of gains associated with the sale(b)
of two Quality Control Center properties (“QC Centers”) in the
current year third quarter. Adjusted operating income(a) was $29.3
million, a $4.3 million, or 12.9%, decrease from the same period a
year ago. The variance between Operating income and Adjusted
operating income was due to the aforementioned gains from the QC
Center sales, $3.9 million of International restructuring costs in
the UK, and a $1.5 million non-cash impairment charge primarily
related to fixed and intangible assets from the refranchising of 15
Domestic restaurants.
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 $1.27 for the third
quarter of 2024 compared with $0.48 in the third quarter of 2023.
Adjusted diluted earnings per common share(a) was $0.43 for the
third quarter of 2024 compared with $0.53 in the third quarter of
2023. These changes were driven by the same factors impacting
Operating income and Adjusted operating income as discussed above.
In addition, diluted earnings per common share and Adjusted diluted
earnings per common share reflected lower interest expense and a
higher effective tax rate compared with the third quarter of 2023.
Interest expense decreased largely due to lower average outstanding
debt compared with the prior year third quarter. The higher tax
rate reflects the impairment charges related to the International
Restructuring program as well as the shortfall from the vesting of
long-term equity awards, resulting in an additional tax expense
when compared with the prior year period.
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,
2024
September 24,
2023
September 29,
2024
September 24,
2023
Comparable sales growth
(decline):
Domestic Company-owned restaurants
(6.7
)%
5.9
%
(4.6
)%
3.8
%
North America franchised restaurants
(5.3
)%
2.2
%
(3.4
)%
(0.4
)%
North America restaurants
(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
%
North America franchised restaurants
(3.8
)%
3.2
%
(2.4
)%
1.1
%
North America restaurants
(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 $7.1 million of International sales related to the first
and second quarters of 2024 that were erroneously omitted in prior
periods.
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 North
America
Total North America
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 $9.0 million for the nine
months ended September 29, 2024, compared with $76.0 million in the
prior year period. The year over year change primarily reflects
unfavorable working capital changes and timing of cash payments for
advertising and income taxes, partially offset by a $4.0 million
decrease in capital expenditures.
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 $15.2 million ($0.46 per
common share) in the third quarter of 2024. On October 29, 2024,
our Board of Directors declared a fourth quarter dividend of $0.46
per common share. The dividend will be paid on November 29, 2024 to
stockholders of record as of the close of business on November 18,
2024.
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
Atlanta, Ga. and Louisville, Ky. and is the world’s third-largest
pizza delivery company with more than 5,900 restaurants in
approximately 50 countries and territories. For more information
about the Company or to order pizza online, visit www.papajohns.com
or download the Papa Johns mobile app for iOS or Android.
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 UK
market, International restructuring plans, timing and costs,
International consumer demand, adoption of new accounting
standards, and other financial and operational measures. Such
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions, which are difficult
to predict and many of which are beyond our control. Therefore,
actual outcomes and results may differ materially from those
matters expressed or implied in such forward-looking
statements.
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 U.S. and international
markets, including the United Kingdom; labor shortages at Company
and/or franchised restaurants and our quality control centers;
increases in labor costs, changes in commodity costs, supply chain
incentive-based rebates, or sustained higher other operating costs,
including as a result of supply chain disruption, inflation or
climate change; the potential for delayed new restaurant openings,
both domestically and internationally, or lower net unit
development due to changing circumstances outside of our control;
the increased risk of phishing, ransomware and other cyber-attacks;
risks and disruptions to the global economy and our business
related to the conflicts in Ukraine and the Middle East and other
international conflicts and risks related to a possible economic
recession or downturn that could reduce consumer spending or
demand. These and other risks, uncertainties and assumptions that
are involved in our forward-looking statements are discussed in
detail in “Part I. Item 1A. – Risk Factors” in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2023. We undertake
no obligation to update publicly any forward-looking statements,
whether as a result of future events, new information or otherwise,
except as required by law.
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, North America franchised, and
International Comparable sales growth (decline) and Global
system-wide restaurant sales information is useful in analyzing our
results since our franchisees pay royalties and marketing fund
contributions that are based on a percentage of franchise sales.
Comparable sales and Global system-wide restaurant sales results
for restaurants operating outside of the United States are reported
on a constant dollar basis, which excludes the impact of foreign
currency translation. Franchise sales also generate commissary
revenue in the United States and in certain international markets.
Comparable sales growth (decline) and Global system-wide restaurant
sales information is also useful for comparison to industry trends
and evaluating the strength of our brand. Management believes the
presentation of Global system-wide restaurant sales growth,
excluding the impact of foreign currency, provides investors with
useful information regarding underlying sales trends and the impact
of new unit growth without being impacted by swings in the external
factor of foreign currency. Franchise restaurant sales are not
included in the Company’s revenues.
Non-GAAP Financial
Measures
In addition to the results provided in accordance with U.S.
GAAP, we provide certain non-GAAP measures, which present results
on an adjusted basis. These are supplemental measures of
performance that are not required by or presented in accordance
with U.S. GAAP and include the following: Adjusted operating
income, Adjusted net income attributable to common shareholders and
Adjusted diluted earnings per common share. We believe that our
non-GAAP financial measures enable investors to assess the
operating performance of our business relative to our performance
based on U.S. GAAP results and relative to other companies. We
believe that the disclosure of these non-GAAP measures is useful to
investors as they reflect metrics that our management team and
Board utilize to evaluate our operating performance, allocate
resources and administer employee incentive plans. The most
directly comparable U.S. GAAP measures to Adjusted operating
income, Adjusted net income attributable to common shareholders and
Adjusted diluted earnings per common share are Operating income,
net income attributable to common shareholders and diluted earnings
per common share, respectively. These non-GAAP measures should not
be construed as a substitute for or a better indicator of the
Company’s performance than the Company’s U.S. GAAP results. The
table that follows reconciles our GAAP financial results to our
non-GAAP financial measures.
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
—
UK repositioning and acquisition-related
costs (c)
—
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
—
UK repositioning and acquisition-related
costs (c)
—
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
—
UK repositioning and acquisition-related
costs (c)
—
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 Texas and Florida QC Center
properties.
(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 UK, professional services and other
related costs, losses on refranchising Company-owned restaurants,
losses on franchisee notes receivable, lease termination costs, as
well as severance.
(c)
Represents costs associated with
repositioning the UK portfolio as well as transaction costs related
to the acquisition of restaurants from franchisees.
(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
22.6% and 22.8% for the three and nine months ended September 29,
2024 and September 24, 2023, respectively.
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 ($0.01 par value per share;
issued 49,282 at September 29, 2024 and 49,235 at December 31,
2023)
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,
2024
September 24,
2023
September 29,
2024
September 24,
2023
Revenues:
Domestic Company-owned restaurant
sales
$
168,672
$
177,195
$
518,103
$
532,841
North America franchise royalties and
fees
33,831
35,041
103,937
105,824
North America commissary revenues
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
North America commissary expenses
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
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