Papa Johns 2014 Annual Report Download - page 43

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30
Items Impacting Comparability; Non-GAAP Measures
The following table reconciles our financial results as reported under GAAP to certain non-GAAP
measures. We present these non-GAAP measures to adjust for certain items which we believe impact the
comparability of our results of operations.
Year Ended
Dec. 28, Dec. 29, Dec. 30,
(In thousands, except per share amounts) 2014 2013 2012
Total revenues, as reported 1,598,149$ 1,439,022$ 1,342,653$
53rd week of operations (a) - - (21,500)
Total revenues, as adjusted 1,598,149$ 1,439,022$ 1,321,153$
Income before income taxes, as reported 114,255$ 106,109$ 98,395$
53rd week of operations (a) - - (4,145)
Incentive Contribution (b) (1,000) (1,000) 2,971
Income before income taxes, as adjusted 113,255$ 105,109$ 97,221$
Net income, as reported 73,315$ 69,537$ 61,660$
53rd week of operations (a) - - (2,634)
Incentive Contribution (b) (680) (660) 1,955
Net income, as adjusted 72,635$ 68,877$ 60,981$
Earnings per diluted common share, as reported 1.75$ 1.55$ 1.29$
53rd week of operations (a) - - (0.05)
Incentive Contribution (b) (0.02) (0.02) 0.04
Earnings per diluted common share, as adjusted 1.73$ 1.53$ 1.28$
(a) 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. In 2012, the Company’s fiscal year consisted of 53 weeks,
with the additional week added to the fourth quarter (14 weeks) results. The 2012 impact of the 53rd
week on income before income taxes was an increase of $4.1 million, or $0.05 earnings per diluted
common share.
(b) In connection with a new multi-year supplier agreement, the Company received a $5.0 million
supplier marketing payment in 2012. The Company is recognizing the supplier marketing payment
evenly as income over the five-year term of the agreement ($1.0 million per year). In 2012, the
Company contributed the supplier marketing payment to the Papa John’s Marketing Fund (“PJMF”),
an unconsolidated nonstock corporation designed to operate at break even for the purpose of
designing and administering advertising and promotional programs for all participating domestic
restaurants. The Company’s contribution to PJMF was fully expensed in 2012.
PJMF elected to distribute the $5.0 million supplier marketing payment to the domestic system as
advertising credits in 2012. Our domestic Company-owned restaurants’ portion of the advertising
credits resulted in an increase in income before income taxes of approximately $1.0 million in 2012.