Papa Johns 2014 Annual Report Download - page 53

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40
year results and analyzing each segment’s revenue trends. See “Items Impacting Comparability; Non-
GAAP Measures” above for further information about our use of non-GAAP financial measures.
Excluding the impact of the 53rd week of operations in 2012, which approximated $21.5 million, revenues
increased 8.9%.
Adjusted Adjusted
Dec. 29, Dec. 30, 53rd Increase Increase
(In thousands)
2013 2012 Increase Week $ %
52 weeks 53 weeks
North America Revenues:
Domestic Company-owned restaurant sales 635,317$ 592,203$ 43,114$ 10,600$ 53,714$ 9.2%
Franchise royalties 81,692 79,567 2,125 1,400 3,525 4.5%
Franchise and development fees 1,181 806 375 - 375 46.5%
Domestic commissary sales 578,870 545,924 32,946 8,500 41,446 7.7%
Other sales 53,322 51,223 2,099 200 2,299 4.5%
International Revenues:
Royalties and franchise and development fees 21,979 19,881 2,098 150 2,248 11.4%
Restaurant and commissary sales 66,661 53,049 13,612 650 14,262 27.2%
Total Revenues 1,439,022$ 1,342,653$ 96,369$ 21,500$ 117,869$ 8.9%
Year Ended
The increase in revenues in 2013 compared to 2012 was primarily due to the following:
Domestic Company-owned restaurant sales increased $43.1 million, or 7.3%. Excluding the
$10.6 million impact of the 53rd week in 2012, sales increased $53.7 million, or 9.2%, primarily
due to an increase in comparable sales of 6.6% and the net acquisition of 50 restaurants in the
Denver and Minneapolis markets from a franchisee in the second quarter of 2012.
North America franchise royalty revenues increased $2.1 million, or 2.7%. Excluding the $1.4
million impact of the 53rd week in 2012, revenues increased approximately $3.5 million, or 4.5%,
due to an increase in comparable sales of 3.1% and an increase in net franchise units over the
prior year. This increase was slightly offset by reduced royalties attributable to the Company’s
net acquisition of the 50 restaurants noted above.
Domestic commissary sales increased $32.9 million, or 6.0%. Excluding the $8.5 million impact
of the 53rd week in 2012, sales increased $41.4 million, or 7.7%, primarily due to higher
commissary product volumes, primarily resulting from increases in the volume of restaurant
sales, higher overall margins and increases in the prices of underlying commodities.
International royalties and franchise and development fees increased $2.1 million or 10.6%.
Excluding the $150,000 impact of the 53rd week in 2012, royalties and fees increased $2.2
million, or 11.4%. This was primarily due to an increase in units and comparable sales of 7.5%.
International restaurant and commissary sales increased $13.6 million, or 25.7%. Excluding the
$650,000 impact of the 53rd week in 2012, sales increased $14.3 million, or 27.2%. The increase
was primarily due to an increase in China Company-owned restaurant sales due to an increase in
units. In addition, we no longer consolidated China one month in arrears, which put China on the
same reporting cycle as our Domestic operations. The inclusion of the additional month of
operations in fiscal 2013 resulted in $2.1 million of incremental revenues.