UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 10-Q
(Mark
One)
|
ý
|
Quarterly
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
|
|
|
|
|
For
the quarterly period ended March 27, 2005
|
|
|
|
|
OR
|
|
|
|
|
o
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
|
Commission File Number: 0-21660
PAPA JOHN’S INTERNATIONAL, INC.
(Exact name of
registrant as specified in its charter)
|
Delaware
|
|
61-1203323
|
|
(State
or other jurisdiction of
incorporation or organization)
|
|
(I.R.S.
Employer Identification
number)
|
2002 Papa Johns Boulevard
Louisville, Kentucky 40299-2334
(Address of
principal executive offices)
(502) 261-7272
(Registrant’s
telephone number, including area code)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days:
Indicate by check mark whether the registrant is an
accelerated filer (as defined by Rule 12b-2 of the Act).
At April 29, 2005, there were outstanding
16,567,833 shares of the registrant’s common stock, par value $.01 per share.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Papa John’s International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
|
(In thousands)
|
|
March 27, 2005
|
|
December 26, 2004
|
|
|
|
|
(Unaudited)
|
|
(Note)
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
14,105
|
|
$
|
14,698
|
|
|
Accounts receivable
|
|
24,739
|
|
28,384
|
|
|
Inventories
|
|
22,444
|
|
23,230
|
|
|
Prepaid expenses and other current assets
|
|
12,980
|
|
15,208
|
|
|
Deferred income taxes
|
|
8,569
|
|
7,624
|
|
|
Total current assets
|
|
82,837
|
|
89,144
|
|
|
|
|
|
|
|
|
|
Investments
|
|
8,344
|
|
8,552
|
|
|
Net property and equipment
|
|
193,275
|
|
197,103
|
|
|
Notes receivable from franchisees and affiliates
|
|
6,555
|
|
6,828
|
|
|
Deferred income taxes
|
|
6,046
|
|
6,117
|
|
|
Goodwill
|
|
51,071
|
|
51,071
|
|
|
Other assets
|
|
15,130
|
|
15,672
|
|
|
Total assets
|
|
$
|
363,258
|
|
$
|
374,487
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
26,915
|
|
$
|
35,934
|
|
|
Income and other taxes
|
|
22,324
|
|
17,270
|
|
|
Accrued expenses
|
|
46,144
|
|
44,771
|
|
|
Current portion of debt
|
|
84,445
|
|
15,709
|
|
|
Total current liabilities
|
|
179,828
|
|
113,684
|
|
|
|
|
|
|
|
|
|
Unearned franchise and development fees
|
|
7,865
|
|
8,208
|
|
|
Long-term debt, net of current portion
|
|
—
|
|
78,521
|
|
|
Other long-term liabilities
|
|
33,131
|
|
34,851
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Preferred stock
|
|
—
|
|
—
|
|
|
Common stock
|
|
327
|
|
325
|
|
|
Additional paid-in capital
|
|
248,343
|
|
242,656
|
|
|
Accumulated other comprehensive loss
|
|
(66
|
)
|
(555
|
)
|
|
Retained earnings
|
|
327,107
|
|
317,142
|
|
|
Treasury stock
|
|
(433,277
|
)
|
(420,345
|
)
|
|
Total stockholders’ equity
|
|
142,434
|
|
139,223
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
363,258
|
|
$
|
374,487
|
|
Note: The balance
sheet at December 26, 2004 has been derived from the audited consolidated
financial statements at that date but does not include all information and
footnotes required by accounting principles generally accepted in the United
States for a complete set of financial statements.
See
accompanying notes.
2
Papa John’s
International, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
|
|
Three Months Ended
|
|
|
(In thousands, except per share amounts)
|
|
March 27, 2005
|
|
March 28, 2004
|
|
|
Domestic revenues:
|
|
|
|
|
|
|
Company-owned restaurant sales
|
|
$
|
110,714
|
|
$
|
106,173
|
|
|
Variable interest entities restaurant sales
|
|
5,167
|
|
—
|
|
|
Franchise royalties
|
|
13,365
|
|
12,911
|
|
|
Franchise and development fees
|
|
703
|
|
534
|
|
|
Commissary sales
|
|
100,912
|
|
94,536
|
|
|
Other sales
|
|
13,392
|
|
14,724
|
|
|
International revenues:
|
|
|
|
|
|
|
Royalties and franchise and development fees
|
|
2,122
|
|
1,764
|
|
|
Restaurant and commissary sales
|
|
5,999
|
|
6,267
|
|
|
Total revenues
|
|
252,374
|
|
236,909
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
Domestic Company-owned restaurant expenses:
|
|
|
|
|
|
|
Cost of sales
|
|
25,240
|
|
25,859
|
|
|
Salaries and benefits
|
|
34,139
|
|
33,519
|
|
|
Advertising and related costs
|
|
9,611
|