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Domino's Pizza Posts Strong Third Quarter 2005 Financial Results

EPS of $0.30; up 30.4%

ANN ARBOR, Mich., Oct 25, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Domino's Pizza, Inc. (NYSE: DPZ), the recognized world leader in pizza delivery, today announced financial results for the third quarter and first three quarters of 2005, which ended September 11, 2005. Diluted earnings per share were $0.30 on net income of $20.8 million for the third quarter of 2005, driven primarily by strong global retail sales growth. Global retail sales were up 7.8% for the quarter versus the prior year period, driven by domestic and international same store sales and unit growth. Domestic same store sales increased 1.1% for the quarter, while international same store sales increased 4.5%, on a constant dollar basis, for the same period. Domestic and international same store sales increased 8.0% and 5.9%, respectively, for the same periods last year. The Company added 67 net stores worldwide during the quarter, and increased worldwide store counts by 342 net stores over the past four fiscal quarters.

Third Quarter Highlights (versus the prior year period):

* Diluted EPS increased 30.4% to $0.30, on net income of $20.8 million, compared to pro forma diluted EPS of $0.23 in the third quarter of 2004. See later in this release for a discussion of this pro forma measure.

* Global retail sales, comprised of all retail sales at Company-owned and franchise stores worldwide, increased 7.8%, driven by higher same store sales and store counts.

* Domestic same store sales increased 1.1%, comprised of a domestic Company-owned same store sales increase of 4.2% and a domestic franchise same store sales increase of 0.7%.

* International same store sales increased 4.5%, on a constant dollar basis, marking the 47th consecutive quarter of international same store sales growth.

* Worldwide store counts increased by a net 67 stores during the quarter, and increased by a net 342 stores over the past four fiscal quarters. At the end of the quarter, there were 7,945 Domino's Pizza stores in operation worldwide. The net store growth data includes 14 closed franchise stores during the third quarter as a result of Hurricane Katrina.

Domino's Pizza Chairman and CEO David A. Brandon, commented, "I am very pleased with the way we performed against our business plan for the third quarter. Both our domestic and international businesses drove positive same store sales growth, which was particularly noteworthy, considering our extremely strong sales performance in the same period last year. Together with lower cheese costs and healthy store growth, we were pleased to drive EPS growth of more than 30%."

"I would also like to highlight the strength and character of our team members and franchisees in the wake of hurricanes Katrina and Rita," Brandon continued. "Our largest domestic franchisee, RPM Pizza, is located in the center of Katrina's devastation, and many of our franchisees and team members displayed incredible acts of selflessness by traveling to RPM Pizza locations throughout Mississippi and Louisiana and helping them get most of their stores reopened in a remarkably short period of time. In addition, we were privileged to provide free, hot food to thousands of evacuees and rescue workers during the weeks immediately following the storms. I am very proud of the resiliency of the Domino's Pizza system and our ability to come together as a team during trying times to provide needed support to the communities we serve."

Conference Call Information

The Company plans to file its quarterly report on Form 10-Q this morning. Additionally, as previously announced, Domino's Pizza, Inc. will hold a conference call today at 11 a.m. (Eastern) to review its third quarter 2005 financial results. The call can be accessed by dialing (888) 306-6182 (U.S./Canada) or (706) 634-4947 (International). Ask for the Domino's Pizza conference call. The call will also be webcast at http://www.dominos.com . If you are unable to participate on the call, a replay will be available through midnight on November 25, 2005 by dialing (800) 642-1687 (U.S./Canada) or (706) 645-9291 (International), conference ID 3420972. The webcast will be archived for 30 days on http://www.dominos.com.

Board Declares Third Quarter Dividend

The Company's third quarter dividend, in the amount of 10 cents per share, will be paid on December 30, 2005 to shareholders of record as of the close of business on December 15, 2005. On an annualized basis, our third quarter dividend equates to an approximate 1.9% dividend yield, based on the Company's closing stock price of $21.31 on October 21, 2005.

Impact of Hurricanes Katrina and Rita

The Company's overall operations and financial condition were not significantly impacted by hurricanes Katrina or Rita. However, 14 franchise stores in Louisiana and Mississippi suffered significant damage and are not expected to re-open in the near term. These stores have been designated as closed stores for store count purposes. Our Company-owned distribution center in Louisiana suffered only minor damage and continues to be fully operational.

Summary of Financial Results

Global Retail Sales Growth

Global retail sales include all retail sales worldwide at Company-owned and franchise stores (see Definitions).

(versus the prior year period)        Third Quarter   First Three Quarters
                                            of 2005             of 2005

    Domestic Stores                          +3.3%               +8.0%
    International stores                    +17.7%              +19.9%

    Global retail sales                      +7.8%              +11.7%

The increases in third quarter and year-to-date global retail sales versus the prior year periods were driven by increases in same store sales and higher store counts as detailed in the following charts.

Same Store Sales Growth
    See Definitions.

    (versus the prior
     year period)                 Third Quarter of 2005   First Three Quarters
                                                                of 2005

    Domestic Company-owned stores            +4.2%               +8.9%
    Domestic franchise stores                +0.7%               +5.9%
    Total Domestic Stores                    +1.1%               +6.3%

    International stores                     +4.5%               +6.9%


    Store Counts and Net Unit Growth

                       Domestic    Domestic     Total
                    Company-owned  Franchise    Domestic  International
                        Stores      Stores (1)  Stores       Stores     Total

    Store count at
     June 19, 2005       569        4,460        5,029       2,849      7,878
    Openings               3           27           30          76        106
    Closings               -          (33)         (33)         (6)       (39)
    Transfers              2           (2)           -           -          -
    Store count at
     September 11, 2005  574        4,452        5,026       2,919      7,945
    Third quarter of
     2005 net growth       5           (8)          (3)         70         67
    First three
     quarters of 2005
     net growth           (6)          24           18         170        188
    Trailing 4
     quarters net
     growth               (4)          85           81         261        342

(1) The domestic franchise store counts at September 11, 2005 reflect 14 closed stores as a result of Hurricane Katrina.

Revenues

                             Third Quarter             First Three Quarters
    (dollars in                            %                            %
    thousands)         2005       2004   Change      2005      2004   Change

    Domestic
     Company-owned
     stores          $91,024    $87,471   4.1%    $280,923   $259,497   8.3%
    Domestic
     franchise        35,914     35,199   2.0%     112,384    103,604   8.5%
    Domestic
     distribution    182,085    177,422   2.6%     572,127    529,199   8.1%
    International     28,553     24,886  14.7%      88,764     75,669  17.3%
    Total
     revenues (1)   $337,576   $324,978   3.9%  $1,054,198   $967,969   8.9%

(1) Total revenues primarily include retail sales at Company-owned stores, royalties from franchise stores, and related sales from distribution operations, which sell food and equipment to all Company-owned stores and certain franchise stores. Company-owned store and franchise store revenues may vary significantly from period to period due to changes in store count mix, while distribution revenues may vary significantly as a result of fluctuations in food prices, primarily cheese prices.

The increases in third quarter and year-to-date total revenues versus the prior year periods were due primarily to increases in domestic Company-owned store revenues, which were driven by higher same store sales, and increases in distribution volumes which were driven by increases in domestic franchise retail sales, offset in part by lower cheese costs. The published cheese block price-per-pound averaged $1.48 and $1.51 in the third quarter and first three quarters of 2005, respectively, down from $1.60 and $1.65 in the comparable periods of 2004. Total revenues were also positively impacted by increases in revenues from international operations, primarily as a result of higher same store sales and store counts.

Operating Margin

                                              Third Quarter
    (dollars in thousands)                % of                  % of
                                2005     Revenues     2004     Revenues

    Domestic Company-owned
     stores                  $19,240      21.1%    $15,353      17.6%
    Domestic franchise (1)    35,914     100.0%     35,199     100.0%
    Domestic distribution     17,655       9.7%     16,420       9.3%
    International             13,703      48.0%     12,310      49.5%
    Total operating margin   $86,512      25.6%    $79,282      24.4%

                                           First Three Quarters
    (dollars in thousands)                % of                  % of
                                2005     Revenues     2004     Revenues

    Domestic Company-owned
     stores                  $57,906      20.6%    $48,305      18.6%
    Domestic franchise (1)   112,384     100.0%    103,604     100.0%
    Domestic distribution     55,374       9.7%     49,516       9.4%
    International             42,260      47.6%     36,570      48.3%
    Total operating margin  $267,924      25.4%   $237,995      24.6%

(1) Domestic franchise operations do not have a cost of sales component. Accordingly, the domestic franchise operating margin equals domestic franchise revenues.

The increases in the third quarter and year-to-date total operating margin versus the prior year periods were due primarily to increases in retail sales from both international and domestic franchise operations, which drove higher royalty revenues. Total operating margin was also positively impacted by improvements in Company-owned store margins as a result of higher sales and lower insurance and food costs. In addition, operating margins in our domestic distribution operations increased as a result of higher volumes resulting from increases in domestic franchise retail sales. These increases were offset in part by increases in delivery costs due to higher fuel prices.

Total operating margin as a percentage of revenues increased 1.2 and 0.8 percentage points during the third quarter and year-to-date period, respectively, versus the prior year periods. Operating margin as a percentage of total revenues was positively impacted as a result of higher same store sales and store counts, which generated increased domestic and international franchise royalty revenues, higher distribution volumes and higher domestic Company-owned store revenues. Additionally, the total operating margin as a percentage of revenues was positively impacted as a result of lower food costs, including cheese and insurance costs, which benefited both domestic Company-owned store and distribution operating margins as a percentage of revenues. These increases were offset in part by increases in delivery costs due to higher fuel prices.

As mentioned above, the total operating margin as a percentage of revenues was positively impacted by lower cheese costs. Cheese price changes are a "pass-through" in domestic distribution revenues and cost of sales, and, as such, have no impact on the related operating margin. However, cheese price changes do impact operating margin as a percentage of revenues. Had the 2005 cheese prices been in effect during 2004, the total operating margin as a percentage of total revenues would have been approximately 24.6% and 24.8% for the third quarter and first three quarters of 2004, respectively, versus the reported 24.4% and 24.6%. This would have resulted in operating margin improvements of 1.0 and 0.6 percentage points in the third quarter and first three quarters of 2005, respectively, versus the reported improvements of 1.2 and 0.8 percentage points.

Similarly, had the 2005 cheese prices been in effect during 2004, the domestic distribution operating margin as a percentage of domestic distribution revenues would have been approximately 9.4% and 9.5% for the third quarter and first three quarters of 2004, respectively, versus the reported 9.3% and 9.4%. This would have resulted in operating margin improvements of 0.3 and 0.2 percentage points in the third quarter and first three quarters of 2005, respectively, versus the reported improvements of 0.4 and 0.3 percentage points.

General and Administrative Expenses

General and administrative expenses decreased $9.8 million, or 19.2%, during the third quarter of 2005 versus the prior year period, and decreased $1.3 million, or 1.1%, during the first three quarters of 2005 versus the prior year period. These decreases in general and administrative expenses were due primarily to the $10.0 million payment made to an affiliate of our former majority stockholder in connection with our initial public offering to terminate its management agreement with us, which occurred in the third quarter of 2004. The decrease for the year-to-date period was offset in part by increases in variable general and administrative expenses, including higher administrative labor due primarily to higher performance-based bonuses and increases in advertising contributions as a result of higher Company-owned store revenues. As a percentage of total revenues, general and administrative expenses decreased 3.5 percentage points to 12.2% in the third quarter of 2005 versus the prior year period, and decreased 1.2 percentage points to 11.9% in the first three quarters of 2005 versus the prior year period.

Income from Operations

Income from operations increased $17.0 million, or 59.9%, during the third quarter of 2005 versus the prior year period, and increased $31.3 million, or 28.1%, during the first three quarters of 2005 versus the prior year period. Income from operations was positively impacted by higher royalty revenues from domestic and international franchise stores, increases resulting from higher domestic Company-owned same store sales, lower food and insurance costs, and higher volumes in our distribution business. Additionally, income from operations was positively impacted by the aforementioned decreases in general and administrative expenses.

Interest Expense, net

Interest expense, net decreased $5.5 million, or 32.0%, during the third quarter of 2005 versus the prior year period, and decreased $12.3 million, or 27.4%, during the first three quarters of 2005 versus the prior year period. These decreases were due primarily to lower average debt balances and $3.7 million in deferred financing and bond discount expense related to our initial public offering in the third quarter of 2004. The average outstanding debt balance, excluding capital lease obligations, decreased $139.8 million to $758.4 million in the third quarter, from $898.2 million in the prior year period, and decreased $161.0 million to $760.9 million in the year-to-date period, from $921.9 million for the first three quarters of 2004.

The Company's effective borrowing rate increased 0.4 percentage points to 6.0% during the third quarter, from 5.6% in the prior year period, and decreased 0.2 percentage points to 5.5% during the year-to-date period, from 5.7% for the first three quarters of 2004. The effective borrowing rate during 2005 was positively impacted by reduced senior credit facility margin pricing, offset in part by higher market interest rates. The effective borrowing rate for the third quarter of 2005 was negatively impacted by changes in our outstanding interest rate swaps. At June 30, 2005, two floating-to-fixed interest rate derivatives expired with total notional amounts of $375 million. The Company paid 1.62% under a $300 million notional amount contract and 3.25% under a $75 million notional amount contract while the counterparty paid a floating interest rate under each contract. Concurrently, a $350 million notional amount floating-to-fixed interest rate derivative started with the Company paying 3.21% under the contract while the counterparty pays a floating interest rate.

Other

The third quarter and year-to-date 2004 other amount of $9.8 million was comprised of losses incurred in connection with debt retirements, including $9.0 million incurred in connection with the redemption of $109.1 million of Domino's, Inc.'s senior subordinated notes in August 2004.

Net Income

Net income increased $19.8 million to $20.8 million during the third quarter of 2005 versus the prior year period, and increased $33.9 million to $69.2 million during the first three quarters of 2005 versus the prior year period. These increases were due primarily to the aforementioned increases in income from operations as well as the reductions in interest expense and other expense. Additionally, net income for the year-to-date period was positively impacted by lower income taxes resulting from the reversal of valuation allowances related to net operating loss deferred tax assets from certain of our foreign operations.

Pro Forma EPS

Diluted earnings per share for the third quarter and year-to-date periods of 2005 were $0.30 and $1.00, respectively. Pro forma diluted earnings per share for the third quarter and year-to-date periods of 2004 were $0.23 and $0.75, respectively. Diluted EPS, as reported for the third quarter and first three quarters of 2004 is disclosed in the accompanying condensed consolidated statements of income.

Management believes it is helpful to investors to be presented with a pro forma EPS number for the third quarter and year-to-date periods of 2004, which is based on the Company's capital structure following the completion of its initial public offering in the third quarter of 2004. As a result, the Company is providing pro forma EPS amounts for the third quarter and first three quarters of 2004, assuming that the following transactions occurred at the beginning of 2004:

(i) the reclassification of previously outstanding Class A Common Stock and Class L Common Stock into Common Stock; and

(ii) the issuance of the 9,375,000 shares in the IPO and the redemption of $109.1 million of senior subordinated notes, resulting in a reduction of interest expense of approximately $2.1 million ($1.3 million after-tax) in each of the first two quarters of 2004 and $1.6 million ($1.0 million after- tax) for the third quarter of 2004.

The following table reconciles net income, as reported to pro forma net income for the third quarter and first three quarters of 2004, respectively, and also presents the pro forma diluted weighted average shares of common stock outstanding used to determine pro forma diluted earnings per share. The denominator in the pro forma diluted EPS calculations below assumes that the capital structure in place after the IPO was in place for the first three quarters of 2004.

First Three
                                               Third Quarter       Quarters
                                                  of 2004          of 2004
    (In thousands, except per share data)
    Net income, as reported                          $979          $35,270
    Adjustments:
      Reduction in interest expense
       from debt retirement                         1,575            5,775
      Elimination of payment to
       terminate management fee                    10,000           10,000
      Elimination of bond redemption premium
       and related expenses                        12,749           12,749
      Total adjustments (pre-tax)                  24,324           28,524
      Tax impact                                   (9,183)         (10,768)
    Total adjustments (net of tax)                 15,141           17,756
    Pro forma net income                          $16,120          $53,026
    Weighted average shares
     outstanding - diluted                         71,072           71,072
    Earnings per share - diluted, pro forma         $0.23            $0.75


    The following table reconciles diluted EPS, as reported to pro forma
diluted EPS for the third quarter and first three quarters of 2004,
respectively.

                                                                 First Three
                                                Third Quarter      Quarters
                                                  of 2004          of 2004
    Earnings per share - diluted, as reported      $(0.02)           $0.35
    Impact of pro forma adjustments                  0.21             0.25
    Impact of the reclassification of the
     Class L conversion and issuance of
     common stock assuming the IPO occurred
     at the beginning of the year                    0.04             0.15
    Earnings per share - diluted, pro forma         $0.23            $0.75
    See Comments on Regulation G.

Liquidity

As of September 11, 2005, the Company had $755.2 million in total debt and $21.9 million of cash and cash equivalents. Including the effect of interest rate derivatives, approximately 70% of outstanding borrowings were contractually fixed at the end of the third quarter. The Company voluntarily repaid $25.0 million of senior credit facility borrowings in the first quarter of 2005. During the second and third quarters of 2005, the Company repaid $25.1 million and $15.1 million of outstanding borrowings, respectively, which consisted primarily of repayments of the $40.0 million of borrowings on our revolving credit facility that were used to repurchase approximately 4.4 million shares of the Company's common stock during the second quarter of 2005. The Company is currently not required to pay down principal on its senior subordinated notes until 2011. The next scheduled principal amortization payment of $1.2 million on its senior credit facility is due on March 31, 2006. As of September 11, 2005, the Company had no borrowings under its $125.0 million revolving credit facility. Letters of credit issued under the revolving credit facility were $28.9 million at September 11, 2005.

Additionally, during the third quarter of 2005, the Company received credit rating upgrades from Standard and Poor's. The rating on its senior secured debt improved to BB- from B+, while the rating on its senior subordinated debt improved to B from B-. According to Standard and Poor's, these rating upgrades were given due to the Company's leading market position, improving operating performance and a history of de-leveraging.

We did not have any material commitments for capital expenditures as of September 11, 2005. We currently expect our full year 2005 capital expenditures to total between $28 million and $38 million, including approximately $8 million relating to the completion of the renovation of our world headquarters.

Definitions

The Company uses "global retail sales" to refer to total worldwide retail sales at Company-owned and franchise stores. Management believes global retail sales information is useful in analyzing revenues, because franchisees pay royalties that are based on a percentage of franchise retail sales. Management reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino's Pizza(R) brand. In addition, distribution revenues are directly impacted by changes in domestic 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," calculated including only sales from stores that also had sales in the comparable period of the prior year, but excluding sales from certain seasonal locations such as stadiums and concert arenas. International same store sales growth is calculated similarly to domestic same store sales growth. Changes in international same store sales are reported on a constant dollar basis which reflects changes in sales in international local currency.

Comments on Regulation G

In addition to the GAAP financial measures set forth in this press release, the Company has included certain non-GAAP financial measures within the meaning of Regulation G as a result of the significant changes in the Company's capital structure resulting from our initial public offering in 2004. The Company has included "Pro Forma EPS," calculated based on "Pro Forma Net Income," which are both non-GAAP financial measures. The Company's management believes that these measurements are important to investors and other interested persons and that such persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies in the industry. While management believes that these non-GAAP financial measures will be helpful to investors in understanding and evaluating the Company's performance in the periods immediately following the IPO, management does not expect to continue to provide such non-GAAP financial measures once the effects of the significant changes to the Company's capital structure are able to be fully reflected in the Company's financial statements.

About Domino's Pizza

Founded in 1960, Domino's Pizza is the recognized world leader in pizza delivery. Domino's is listed on the NYSE under the symbol "DPZ." Through its primarily franchised system, Domino's operates a network of 7,945 franchised and Company-owned stores in the United States and more than 50 countries. The Domino's Pizza(R) brand, named a Megabrand by Advertising Age magazine, had global retail sales of more than $4.6 billion in 2004, comprised of nearly $3.2 billion domestically and more than $1.4 billion internationally. Domino's Pizza was named "Chain of the Year" by Pizza Today magazine, the leading publication of the pizza industry and is the "Official Pizza of NASCAR(R)." More information on the Company, in English and Spanish, can be found on the web at http://www.dominos.com .

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relating to our anticipated profitability and operating performance reflect management'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 can cause actual results to differ materially include: the uncertainties relating to litigation; consumer preferences, spending patterns and demographic trends; the effectiveness of our advertising, operations and promotional initiatives; our ability to retain key personnel; new product and concept developments by Domino's and other food-industry competitors; the ongoing profitability of our franchisees and the ability of Domino's and our franchisees to open new restaurants; changes in food prices, 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 in which we operate; severe weather conditions and natural disasters; changes in our effective tax rate; changes in government legislation and regulations; adequacy of our insurance coverage; costs related to future financings and changes in accounting policies. Further information about factors that could affect Domino's financial and other results is included in the Company's filings with the Securities and Exchange Commission. 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
                           September 11,  % of Total  September 5,  % of Total
    (Dollars in thousands,     2005         Revenues     2004         Revenues
     except per share data)
    Revenues:
       Domestic
        Company-owned
        stores              $91,024                   $87,471
       Domestic franchise    35,914                    35,199
       Domestic
        distribution        182,085                   177,422
       International         28,553                    24,886
    Total revenues          337,576          100.0%   324,978          100.0%

    Cost of sales:
       Domestic
        Company-owned
        stores               71,784                    72,118
       Domestic
        distribution        164,430                   161,002
       International         14,850                    12,576
    Total cost of sales     251,064           74.4%   245,696           75.6%
    Operating margin         86,512           25.6%    79,282           24.4%

    General and
     administrative          41,128           12.2%    50,904           15.7%
    Income from operations   45,384           13.4%    28,378            8.7%

    Interest expense, net    11,591            3.4%    17,054            5.2%
    Other                         -              -      9,751            3.0%
    Income before
     provision for
     income taxes            33,793           10.0%     1,573            0.5%

    Provision for
     income taxes            12,977            3.8%       594            0.2%
    Net income              $20,816            6.2%      $979            0.3%

    Earnings per share:
      As reported:
       Common stock -
        diluted               $0.30                    $(0.02)
       Class L common
        stock - diluted         N/A                     $0.50

      Pro forma:
       Common stock -
        diluted                 N/A                     $0.23


                    Domino's Pizza, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Income
                                 (Unaudited)

                                           Three Fiscal Quarters Ended
                           September 11,  % of Total  September 5,  % of Total
    (Dollars in thousands,     2005         Revenues     2004         Revenues
     except per share data)
    Revenues:
       Domestic
        Company-owned
        stores             $280,923                  $259,497
       Domestic franchise   112,384                   103,604
       Domestic
        distribution        572,127                   529,199
       International         88,764                    75,669
    Total revenues        1,054,198          100.0%   967,969          100.0%

    Cost of sales:
       Domestic
        Company-owned
        stores              223,017                   211,192
       Domestic
        distribution        516,753                   479,683
       International         46,504                    39,099
    Total cost of sales     786,274           74.6%   729,974           75.4%
    Operating margin        267,924           25.4%   237,995           24.6%

    General and
     administrative         125,466           11.9%   126,824           13.1%
    Income from operations  142,458           13.5%   111,171           11.5%

    Interest expense, net    32,479            3.1%    44,761            4.7%
    Other                         -              -      9,751            1.0%
    Income before provision
     for income taxes       109,979           10.4%    56,659            5.8%

    Provision for
     income taxes            40,804            3.8%    21,389            2.2%
    Net income              $69,175            6.6%   $35,270            3.6%

    Earnings per share:
      As reported:
       Common stock -
        diluted               $1.00                     $0.35
       Class L common
        stock - diluted         N/A                     $5.57

      Pro forma:
       Common stock -
        diluted                 N/A                     $0.75


                    Domino's Pizza, Inc. and Subsidiaries
                    Condensed Consolidated Balance Sheets
                                 (Unaudited)

                                                              January 2, 2005
                                         September 11, 2005         (Note)
    (In thousands)
    Assets
    Current assets:
        Cash and cash equivalents               $21,902           $40,396
        Accounts receivable                      68,096            73,138
        Inventories                              23,194            21,505
        Advertising fund assets, restricted      30,685            32,817
        Other assets                             24,622            21,635
    Total current assets                        168,499           189,491

    Property, plant and equipment, net          135,225           136,883

    Other assets                                110,405           120,973

    Total assets                               $414,129          $447,347

    Liabilities and stockholders' deficit
    Current liabilities:
        Current portion of long-term debt        $2,693           $25,295
        Accounts payable                         53,560            55,350
        Advertising fund liabilities             30,685            32,817
        Other accrued liabilities                78,843            76,205
    Total current liabilities                   165,781           189,667

    Long-term liabilities:
        Long-term debt, less current portion    752,508           755,405
        Other accrued liabilities                48,407            52,155
    Total long-term liabilities                 800,915           807,560

    Total stockholders' deficit                (552,567)         (549,880)

    Total liabilities and
     stockholders' deficit                     $414,129          $447,347

Note: The balance sheet at January 2, 2005 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Domino's Pizza, Inc. and Subsidiaries
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)

                                                Three Fiscal Quarters Ended
                                             September 11,      September 5,
                                                  2005              2004
    (In thousands)
    Cash flows from operating activities:
      Net income                                $69,175           $35,270
      Adjustments to reconcile net
       income to net cash flows provided
       by operating activities:
          Depreciation and amortization          22,240            21,428
          Amortization of deferred
           financing costs and debt discount      2,057             6,535
          Provision for deferred income taxes     1,933             8,927
          Other                                   1,611             1,140
          Changes in operating assets
           and liabilities                       11,873           (14,155)
    Net cash provided by operating activities   108,889            59,145

    Cash flows from investing activities:
      Capital expenditures                      (20,692)          (28,640)
      Other                                       1,994             1,945
    Net cash used in investing activities       (18,698)          (26,695)

    Cash flows from financing activities:
      Proceeds from issuance of common stock          -           119,550
      Proceeds from issuance of long-term debt   40,000                 -
      Repayments of long-term debt and
       capital lease obligation                 (65,220)         (155,593)
      Cash paid for financing fees                 (514)             (654)
      Repurchase of common stock                (75,000)                -
      Dividends                                 (13,512)                -
      Proceeds from exercise of stock options     3,761               277
      Distributions                                   -           (16,880)
      Other                                       1,581              (873)
    Net cash used in financing activities      (108,904)          (54,173)

    Effect of exchange rate changes on
     cash and cash equivalents                      219               491

    Decrease in cash and cash equivalents       (18,494)          (21,232)

    Cash and cash equivalents,
     at beginning of period                      40,396            46,391

    Cash and cash equivalents,
     at end of period                           $21,902           $25,159

SOURCE Domino's Pizza, Inc.

Lynn M. Liddle, EVP, Communications and Investor Relations of Domino's Pizza,
Inc., +1-734-930-3008

http://www.prnewswire.com