Papa Johns 2008 Annual Report Download - page 45

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38
The following table summarizes the impact of VIEs, prior to required consolidating eliminations, on our
consolidated statements of income for the years ended December 28, 2008 and December 30, 2007 (in
thousands):
BIBP Franchisees Total BIBP Franchisees Total
Variable interest entities
restaurant sales -$ 8,328$ 8,328$ -$ 7,131$ 7,131$
BIBP sales 165,449 - 165,449 138,233 - 138,233
Total revenues 165,449 8,328 173,777 138,233 7,131 145,364
Operating expenses 173,851 7,966 181,817 170,665 6,526 177,191
General and administrative expenses 187 378 565 148 308 456
Gain from the franchise cheese-
purchasing program, net of
minority interest - - - (1,615) - (1,615)
Other general expense (income) - (89) (89) - 243 243
Depreciation and amortization - 73 73 - 54 54
Total costs and expenses 174,038 8,328 182,366 169,198 7,131 176,329
Operating loss (8,589) - (8,589) (30,965) - (30,965)
Interest expense (1,951) - (1,951) (744) - (744)
Loss before income taxes (10,540)$ -$ (10,540)$ (31,709)$ -$ (31,709)$
Year Ended December 28, 2008 Year Ended December 30, 2007
Non-GAAP Measures
The financial information we present in this report excluding the impact of the consolidation of BIBP are
not measures that are defined within accounting principles generally accepted in the United States
(“GAAP”). 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 GAAP measures. We believe the financial information
excluding the impact of the consolidation of BIBP is important for purposes of comparison to prior
periods and development of future projections and earnings growth prospects. We analyze our business
performance and trends excluding the impact of the consolidation of BIBP because the results of BIBP
are not indicative of the principal operating activities of the Company. In addition, annual cash bonuses,
and certain long-term incentive programs for various levels of management, are based on financial
measures that exclude BIBP. The presentation of the non-GAAP measures in this report is made
alongside the most directly comparable GAAP measures.
Summary of Operating Results
The Company follows a fiscal year ending on the last Sunday of December, generally consisting of 52
weeks made up of four 13-week quarters. The 13-week quarters consist of two four-week periods
followed by one five-week period.