UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Exchange Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2024, Domino’s Pizza, Inc. issued a press release announcing financial results for the first quarter ended March 24, 2024. A copy of the press release is attached hereto as Exhibit 99.1. The information in this Form 8-K and the Exhibit attached hereto are being furnished pursuant to Item 2.02 of Form 8-K and therefore shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Description |
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99.1 |
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Domino’s Pizza, Inc. first quarter 2024 financial results press release, dated April 29, 2024. |
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104 |
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The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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DOMINO’S PIZZA, INC. |
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(Registrant) |
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Date: |
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April 29, 2024 |
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/s/ Sandeep Reddy |
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Sandeep Reddy Executive Vice President, Chief Financial Officer (Principal Financial Officer) |
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Exhibit 99.1
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For Immediate Release |
Contact: Greg Lemenchick Vice President - Investor Relations investorrelations@dominos.com |
Domino’s Pizza® Announces First Quarter 2024 Financial Results
Global retail sales growth (excluding foreign currency impact) of 7.3%
U.S. same store sales growth of 5.6%
International same store sales growth (excluding foreign currency impact) of 0.9%
Global net store growth of 164
Income from operations increased 18.6%; excluding the negative impact of foreign currency exchange rates on international franchise royalty revenues of $1.4 million, income from operations increased 19.4%
ANN ARBOR, Michigan, April 29, 2024: Domino’s Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the first quarter of 2024.
“Our first quarter results demonstrated that our Hungry for MORE strategy is off to a strong start: delivering MORE sales, MORE stores, and MORE profits,” said Russell Weiner, Domino’s Chief Executive Officer. “The Renowned Value we created through our new and improved Domino’s Rewards loyalty program drove outsized comp performance, which flowed through to the bottom line with double-digit profit growth. Importantly, our growth in the U.S. came through positive order counts in both our carryout and delivery businesses for the second quarter in a row. Further, this order growth was across all income cohorts. In Q1 we also went live with marketing on Uber Eats, and we remain on track to exit the year at 3% or MORE of sales coming through this new channel. We are laser focused on driving franchisee profitability and store growth, which will fuel the Company’s ability to win and create meaningful long-term value for our shareholders.”
First Quarter 2024 Operational and Financial Highlights (Unaudited):
The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations.
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First Quarter |
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2024 |
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2023 |
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Global retail sales: (in millions of U.S. dollars) |
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U.S. stores |
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$ |
2,212.0 |
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$ |
2,051.0 |
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International stores |
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2,152.1 |
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2,062.7 |
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Total |
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$ |
4,364.1 |
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$ |
4,113.7 |
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First Quarter |
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2024 |
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2023 |
Global retail sales growth: (versus prior year period, |
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U.S. stores |
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+ 7.8% |
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+ 5.1% |
International stores (1) |
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+ 6.8% |
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+ 6.5% |
Total (2) |
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+ 7.3% |
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+ 5.9% |
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Same store sales growth: (versus prior year period) |
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U.S. Company-owned stores |
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+ 8.5% |
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+ 7.3% |
U.S. franchise stores |
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+ 5.5% |
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+ 3.4% |
U.S. stores |
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+ 5.6% |
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+ 3.6% |
International stores (excluding foreign currency impact) |
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+ 0.9% |
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+ 1.2% |
(1) |
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2024 first quarter figure excludes the impact of the Russia market. Including the impact of the Russia market, international stores retail sales growth, excluding foreign currency impact, was 6.1%. |
(2) |
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2024 first quarter figure excludes the impact of the Russia market. Including the impact of the Russia market, total global retail sales growth, excluding foreign currency impact, was 7.0%. |
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U.S. Company- |
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U.S. Franchise |
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Total |
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International |
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Total |
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First quarter of 2024 store counts: |
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Store count at December 31, 2023 |
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288 |
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6,566 |
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6,854 |
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13,737 |
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20,591 |
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Openings |
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3 |
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19 |
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22 |
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181 |
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203 |
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Closings |
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(1 |
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(1 |
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(2 |
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(37 |
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(39 |
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Transfers |
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(1 |
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1 |
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— |
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— |
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— |
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Store count at March 24, 2024 |
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289 |
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6,585 |
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6,874 |
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13,881 |
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20,755 |
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First quarter 2024 net store growth |
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2 |
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18 |
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20 |
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144 |
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164 |
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Trailing four quarters net store growth |
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5 |
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161 |
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166 |
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581 |
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747 |
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Trailing four quarters net store growth, excluding Russia (1) |
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5 |
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161 |
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166 |
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734 |
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900 |
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(1) |
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As previously announced, the remaining 143 net stores in Russia were reflected as closed in the third quarter of 2023. Including those remaining closures, 153 net stores in Russia were closed in the trailing four quarters ended March 24, 2024. Refer to Comments on Regulation G and Russia Market discussion below for additional details. |
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First Quarter |
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(In millions, except percentages, percentage points, per share data and leverage ratio) |
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2024 |
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2023 |
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Increase/ |
Total revenues |
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$1,084.6 |
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$1,024.4 |
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+ 5.9% |
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U.S. Company-owned store gross margin |
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17.5% |
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16.9% |
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+ 0.6 pp |
Supply chain gross margin |
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11.1% |
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9.0% |
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+ 2.1 pp |
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Income from operations |
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$210.4 |
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$177.5 |
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+ 18.6% |
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Net income |
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$125.8 |
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$104.8 |
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+ 20.1% |
Diluted earnings per share |
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$3.58 |
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$2.93 |
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+ 22.2% |
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Leverage ratio |
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5.0x |
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5.7x |
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(0.7)x |
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Net cash provided by operating activities |
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$123.5 |
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$114.7 |
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+ 7.7% |
Capital expenditures |
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(20.2) |
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(19.0) |
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+ 6.0% |
Free cash flow |
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$103.3 |
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$95.7 |
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+ 8.0% |
Quarterly Dividend
Subsequent to the end of the first quarter of 2024, on April 25, 2024, the Company’s Board of Directors declared a $1.51 per share quarterly dividend on its outstanding common stock for shareholders of record as of June 14, 2024, to be paid on June 28, 2024.
Share Repurchases
During the first quarter of 2024, the Company repurchased and retired 56,372 shares of common stock for a total of $25.0 million. As of March 24, 2024, the Company had a total remaining authorized amount for share repurchases of $1.12 billion.
Change in Advertising Fund Contributions and Technology Fees
As previously announced, as of March 27, 2023, Domino's National Advertising Fund Inc., the Company's consolidated not-for-profit advertising subsidiary, effectuated a temporary reduction of 0.25% to its standard 6.0% advertising contribution rate, which expired at the beginning of the second quarter of 2024, on March 25, 2024.
Additionally, as of March 25, 2024, the Company decreased the U.S. digital per-transaction technology fees that are recognized as the related U.S. franchise retail sales occur by $0.04 to $0.355.
Long-Term Guidance (2024 – 2028)
The Company continues to expect to achieve the following long-term guidance metrics previously announced. Annual global retail sales growth and annual income from operations growth exclude the impact of foreign currency.
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 income from operations, excluding foreign currency impact. The Company has also included metrics such as global retail sales, global retail sales growth (excluding foreign currency impact), same store sales growth, net store growth, food basket pricing change, impact of changes in foreign currency exchange rates on international franchise royalty revenues and the leverage ratio, 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 and believes they are indicative of the financial health of the Company’s franchisee base. In addition, supply chain revenues are directly impacted by changes in franchise retail sales in the U.S. and Canada. As a result, sales by Domino’s franchisees have a direct effect on the Company’s profitability. 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 2024 global retail sales growth measures excluding the Russia market are calculated as the growth in retail sales excluding the retail sales from the Russia market from the 2023 retail sales base. Changes in global retail sales growth, excluding foreign currency impact, are primarily driven by same store sales growth and net store growth.
The Company uses “Same store sales growth,” a statistical measure, which is calculated by including only retail 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 “Food basket pricing change,” a statistical measure, which is calculated as the percentage change of the food basket (including both food and cardboard products) 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 food basket pricing change is important to investors and other interested persons to understand the Company’s performance. As food 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 “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 “Income from operations, excluding foreign currency impact,” which is calculated as income from operations as reported under GAAP, less the “impact of changes in foreign currency exchange rates on international franchise royalty revenues,” a statistical measure. The most directly comparable financial measure calculated and presented in accordance with GAAP is income from operations. The impact of changes in foreign currency exchange rates on international franchise royalty revenues 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 and that can be driven by changes in foreign currency exchanges rates. International franchise royalty revenues do not have a cost of sales component, so changes in these revenues have a direct impact on income from operations.
The Company uses the “Leverage ratio1,” which is calculated as the Company’s securitized debt related to its fixed-rate notes from the recapitalizations completed in 2021, 2019, 2018, 2017 and 2015 and borrowings under its variable funding notes, divided by Segment Income as defined by the Company under Accounting Standards Codification 280, Segment Reporting on a trailing four quarters basis. The Company has historically operated with a leverage ratio between four and six times. The Company reviews its leverage ratio on at least a quarterly basis and believes its leverage ratio is important to investors and other interested persons to understand the capital structure of the Company, and to assess the ability of the Company to meet its financial obligations.
The reconciliation of the leverage ratio for the first quarters of 2024 and 2023 is as follows:
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March 24, |
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March 26, |
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2015 Ten-Year Notes |
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$ |
742,000 |
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$ |
750,000 |
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2017 Ten-Year Notes |
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940,000 |
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950,000 |
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2018 7.5-Year Notes |
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402,688 |
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406,938 |
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2018 9.25-Year Notes |
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379,000 |
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383,000 |
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2019 Ten-Year Notes |
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648,000 |
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654,750 |
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2021 7.5-Year Notes |
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826,625 |
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835,125 |
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2021 Ten-Year Notes |
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972,500 |
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982,500 |
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Total fixed-rate notes |
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$ |
4,910,813 |
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$ |
4,962,313 |
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Segment Income - first quarter of 2024 and 2023 |
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$ |
241,843 |
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$ |
203,615 |
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Segment Income - fourth quarter of 2023 and 2022 |
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294,600 |
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260,328 |
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Segment Income - third quarter of 2023 and 2022 |
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217,287 |
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201,264 |
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Segment Income - second quarter of 2023 and 2022 |
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223,618 |
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204,957 |
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Trailing four quarters Segment Income |
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$ |
977,348 |
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$ |
870,164 |
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Leverage ratio |
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5.0 |
x |
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5.7 |
x |
(1) |
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The Company also calculates and reviews its senior leverage ratio and Holdco leverage ratio as defined in the indenture governing the Company’s securitized debt. |
Russia Market
On August 21, 2023, the Company’s master franchisee that owned and operated Domino’s Pizza stores in Russia announced its intent to file for bankruptcy with respect to the stores in that market. Therefore, as of August 21, 2023, the Company has considered the stores in the Russia market to be closed and they are excluded from the Company’s ending store count as of the end of the third quarter of 2023. The Company has disclosed its statistical measure of net store growth for the trailing four quarters including and excluding the impact of the closure of the Russia market. Additionally, the Company has presented its statistical measure of global retail sales growth, excluding foreign currency impact, for the first quarter of 2024 excluding the impact of the retail sales from the Russia market. The Company believes the impact of the Russia market on its statistical measure of global retail sales growth, excluding foreign currency impact, for the first quarter of 2023 was immaterial and prior amounts have not been adjusted to conform to the current year presentation. The Company believes the impact of the Russia market on its statistical measure of same store sales growth for the periods presented was immaterial, and it also believes the impact of the Russia market on its consolidated statements of income related to international franchise royalties and fee revenues and general and administrative expenses for the first quarter of 2023 was immaterial.
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 first quarter 2024 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 20,700 stores in over 90 markets. Domino’s had global retail sales of over $18.5 billion for the trailing four quarters ended March 24, 2024. Its system is comprised of independent franchise owners who accounted for 99% of Domino’s stores as of the end of the first quarter of 2024. In the U.S., Domino’s generated more than 85% of U.S. retail sales in 2023 via digital channels and has developed several innovative ordering platforms including seven unique ways to order Domino’s.
Order – dominos.com
Company Info – biz.dominos.com
Media Assets – media.dominos.com
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 December 31, 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, including through our participation in the third-party order aggregation marketplace; 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; 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; the additional risks our international operations subject us to; 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, advertising 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, other geopolitical or reputational considerations 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)
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Fiscal Quarter Ended |
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March 24, |
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% of |
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March 26, |
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% of |
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(In thousands, except share and per share data) |
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Revenues: |
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U.S. Company-owned stores |
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$ |
92,649 |
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$ |
84,911 |
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U.S. franchise royalties and fees |
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150,518 |
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132,864 |
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Supply chain |
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659,214 |
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624,226 |
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International franchise royalties and fees |
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71,966 |
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69,671 |
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U.S. franchise advertising |
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110,300 |
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112,726 |
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Total revenues |
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|
1,084,647 |
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|
|
100.0 |
% |
|
|
1,024,398 |
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|
|
100.0 |
% |
Cost of sales: |
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|
|
|
|
|
|
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|
|
|
||||
U.S. Company-owned stores |
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76,458 |
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|
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70,572 |
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Supply chain |
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586,319 |
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|
|
|
|
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568,279 |
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|
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Total cost of sales |
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662,777 |
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|
|
61.1 |
% |
|
|
638,851 |
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|
|
62.4 |
% |
Gross margin |
|
|
421,870 |
|
|
|
38.9 |
% |
|
|
385,547 |
|
|
|
37.6 |
% |
General and administrative |
|
|
101,024 |
|
|
|
9.3 |
% |
|
|
95,189 |
|
|
|
9.3 |
% |
U.S. franchise advertising |
|
|
110,300 |
|
|
|
10.2 |
% |
|
|
112,726 |
|
|
|
11.0 |
% |
Refranchising loss |
|
|
133 |
|
|
|
0.0 |
% |
|
|
149 |
|
|
|
0.0 |
% |
Income from operations |
|
|
210,413 |
|
|
|
19.4 |
% |
|
|
177,483 |
|
|
|
17.3 |
% |
Other expense |
|
|
(18,699 |
) |
|
|
(1.7 |
)% |
|
|
— |
|
|
|
0.0 |
% |
Interest expense, net |
|
|
(42,107 |
) |
|
|
(3.9 |
)% |
|
|
(44,156 |
) |
|
|
(4.3 |
)% |
Income before provision for income taxes |
|
|
149,607 |
|
|
|
13.8 |
% |
|
|
133,327 |
|
|
|
13.0 |
% |
Provision for income taxes |
|
|
23,783 |
|
|
|
2.2 |
% |
|
|
28,557 |
|
|
|
2.8 |
% |
Net income |
|
$ |
125,824 |
|
|
|
11.6 |
% |
|
$ |
104,770 |
|
|
|
10.2 |
% |
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock – diluted |
|
$ |
3.58 |
|
|
|
|
|
$ |
2.93 |
|
|
|
|
||
Weighted average diluted shares |
|
|
35,154,232 |
|
|
|
|
|
|
35,708,938 |
|
|
|
|
||
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
March 24, |
|
|
December 31, |
|
||
(In thousands) |
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
203,894 |
|
|
$ |
114,098 |
|
Restricted cash and cash equivalents |
|
|
209,752 |
|
|
|
200,870 |
|
Accounts receivable, net |
|
|
285,609 |
|
|
|
282,809 |
|
Inventories |
|
|
76,086 |
|
|
|
82,964 |
|
Prepaid expenses and other |
|
|
42,143 |
|
|
|
30,215 |
|
Advertising fund assets, restricted |
|
|
76,982 |
|
|
|
106,335 |
|
Total current assets |
|
|
894,466 |
|
|
|
817,291 |
|
Property, plant and equipment, net |
|
|
297,238 |
|
|
|
304,365 |
|
Operating lease right-of-use assets |
|
|
212,251 |
|
|
|
207,323 |
|
Investment in DPC Dash |
|
|
124,854 |
|
|
|
143,553 |
|
Other assets |
|
|
215,933 |
|
|
|
202,367 |
|
Total assets |
|
$ |
1,744,742 |
|
|
$ |
1,674,899 |
|
Liabilities and stockholders’ deficit |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of long-term debt |
|
$ |
4,866 |
|
|
$ |
56,366 |
|
Accounts payable |
|
|
111,678 |
|
|
|
106,267 |
|
Operating lease liabilities |
|
|
39,942 |
|
|
|
39,330 |
|
Advertising fund liabilities |
|
|
75,134 |
|
|
|
104,246 |
|
Other accrued liabilities |
|
|
277,973 |
|
|
|
241,141 |
|
Total current liabilities |
|
|
509,593 |
|
|
|
547,350 |
|
Long-term liabilities: |
|
|
|
|
|
|
||
Long-term debt, less current portion |
|
|
4,973,812 |
|
|
|
4,934,062 |
|
Operating lease liabilities |
|
|
184,691 |
|
|
|
179,548 |
|
Other accrued liabilities |
|
|
84,976 |
|
|
|
84,306 |
|
Total long-term liabilities |
|
|
5,243,479 |
|
|
|
5,197,916 |
|
Total stockholders’ deficit |
|
|
(4,008,330 |
) |
|
|
(4,070,367 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
1,744,742 |
|
|
$ |
1,674,899 |
|
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Fiscal Quarter Ended |
|
|||||
|
|
March 24, |
|
|
March 26, |
|
||
(In thousands) |
|
|
|
|
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
125,824 |
|
|
$ |
104,770 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
19,869 |
|
|
|
18,170 |
|
Refranchising loss |
|
|
133 |
|
|
|
149 |
|
Loss on sale/disposal of assets |
|
|
90 |
|
|
|
275 |
|
Amortization of debt issuance costs |
|
|
1,266 |
|
|
|
1,292 |
|
Benefit for deferred income taxes |
|
|
(3,757 |
) |
|
|
(3,439 |
) |
Non-cash equity-based compensation expense |
|
|
11,338 |
|
|
|
7,538 |
|
Excess tax (benefits) deficiencies from equity-based compensation |
|
|
(8,104 |
) |
|
|
298 |
|
(Benefit) provision for losses on accounts and notes receivable |
|
|
(8 |
) |
|
|
572 |
|
Unrealized loss on investments |
|
|
18,699 |
|
|
|
— |
|
Changes in operating assets and liabilities |
|
|
(9,961 |
) |
|
|
7,388 |
|
Changes in advertising fund assets and liabilities, restricted |
|
|
(31,925 |
) |
|
|
(22,331 |
) |
Net cash provided by operating activities |
|
|
123,464 |
|
|
|
114,682 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(20,181 |
) |
|
|
(19,031 |
) |
Other |
|
|
(1,305 |
) |
|
|
(572 |
) |
Net cash used in investing activities |
|
|
(21,486 |
) |
|
|
(19,603 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Repayments of long-term debt and finance lease obligations |
|
|
(13,525 |
) |
|
|
(13,899 |
) |
Proceeds from exercise of stock options |
|
|
10,774 |
|
|
|
343 |
|
Purchases of common stock |
|
|
(25,000 |
) |
|
|
(30,083 |
) |
Tax payments for restricted stock upon vesting |
|
|
(6,700 |
) |
|
|
(1,553 |
) |
Payments of common stock dividends and equivalents |
|
|
(343 |
) |
|
|
(89 |
) |
Net cash used in financing activities |
|
|
(34,794 |
) |
|
|
(45,281 |
) |
Effect of exchange rate changes on cash |
|
|
(672 |
) |
|
|
(186 |
) |
Change in cash and cash equivalents, restricted cash and cash equivalents |
|
|
66,512 |
|
|
|
49,612 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of period |
|
|
114,098 |
|
|
|
60,356 |
|
Restricted cash and cash equivalents, beginning of period |
|
|
200,870 |
|
|
|
191,289 |
|
Cash and cash equivalents included in advertising fund assets, restricted, |
|
|
88,165 |
|
|
|
143,559 |
|
Cash and cash equivalents, restricted cash and cash equivalents and |
|
|
403,133 |
|
|
|
395,204 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
|
203,894 |
|
|
|
154,193 |
|
Restricted cash and cash equivalents, end of period |
|
|
209,752 |
|
|
|
170,798 |
|
Cash and cash equivalents included in advertising fund assets, restricted, |
|
|
55,999 |
|
|
|
119,825 |
|
Cash and cash equivalents, restricted cash and cash equivalents and cash and |
|
$ |
469,645 |
|
|
$ |
444,816 |
|
###