Papa Johns 2014 Annual Report Download - page 56

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43
by higher interest costs on our line of credit due to both a higher average debt balance and a
higher effective interest rate.
(c) The Perfect Pizza lease obligation relates to rents, taxes and insurance associated with the
former Perfect Pizza operations in the United Kingdom. See “Note 17” of “Notes to
Consolidated Financial Statements” for additional information.
(d) Other income was lower primarily due to higher expenses associated with our online
customer loyalty program.
Diluted earnings per common share were $1.55 in 2013, compared to $1.29 in 2012, an increase of $0.26,
or 20.2%. As previously discussed, the 2012 benefit of the 53rd week of operations was substantially
offset by the impact of the Incentive Contribution. Diluted earnings per common share increased $0.12
due to the 7.5% reduction in weighted average shares outstanding.
Review of Consolidated Operating Results
Revenues. Domestic Company-owned restaurant sales were $635.3 million for 2013 compared to $592.2
million for 2012. As previously noted, the 7.2% increase was primarily due to a 6.6% increase in
comparable sales and the net acquisition of 50 restaurants in Denver and Minneapolis from a franchisee in
the second quarter of 2012. Excluding the impact of the 53rd week in 2012 of $10.6 million, revenues
increased 9.2%.
North America franchise sales increased 3.0% to $1.91 billion, from $1.85 billion in 2012, as domestic
franchise comparable sales increased 3.1% and equivalent units increased 3.2%, somewhat offset by the
impact of the 53rd week in 2012. North America franchise sales are not included in our consolidated
statements of income; however, our North America franchise royalty revenue is derived from these sales.
North America franchise royalties were $81.7 million for 2013, representing an increase of 2.7% from the
comparable period. As previously noted, this increase is due to the franchise comparable sales increase
and an increase in units. Excluding the impact of the 53rd week in 2012 of $1.4 million, royalties
increased 4.5%.
The comparable sales base and average weekly sales for 2013 and 2012 for domestic Company-owned
and North America franchised restaurants consisted of the following:
Domestic
Company-
owned
North
America
Franchised
Domestic
Company-
owned
North
America
Franchised
Total domestic units (end of period) 665 2,621 648 2,556
Equivalent units 649 2,492 624 2,415
Comparable sales base units 633 2,263 615 2,190
Comparable sales base percentage 97.5% 90.8% 98.6% 90.7%
Average weekly sales - comparable units 18,995$ 15,171$ 17,987$ 14,870$
Average weekly sales - total non-comparable units* 12,167$ 10,092$ 12,604$ 10,389$
Average weekly sales - all units 18,832$ 14,704$ 17,908$ 14,453$
*Includes 185 traditional units in 2013 and 215 in 2012 and 184 non-traditional units in 2013 and 158 in 2012.
Year Ended
Year Ended
December 29, 2013
December 30, 2012
North America franchise and development fees were approximately $1.2 million in 2013, or an increase
of approximately $375,000 from 2012.