Pizza Hut 2004 Annual Report Download - page 37

The฀following฀table฀summarizes฀the฀estimated฀impact฀on฀
revenue฀of฀refranchising฀and฀Company฀store฀closures:
฀2004
฀ ฀ Inter-฀
฀ U.S.฀ national฀ Worldwide
Decreased฀sales฀ $฀(241)฀ $฀(131)฀ $฀(372)
Increased฀franchise฀fees฀ ฀ 7฀ ฀ 5฀ ฀ 12
Decrease฀in฀total฀revenues฀ $฀(234)฀ $฀(126)฀ $฀(360)
฀ 2003
฀ ฀ Inter-฀
฀ U.S.฀ national฀ Worldwide
Decreased฀sales฀ $฀(148)฀ $฀(120)฀ $฀(268)
Increased฀franchise฀fees฀ ฀ 1฀ ฀ 5฀ ฀ 6
Decrease฀in฀total฀revenues฀ $฀(147)฀ $฀(115)฀ $฀(262)
The฀following฀table฀summarizes฀the฀estimated฀impact฀on฀oper-
ating฀profit฀of฀refranchising฀and฀Company฀store฀closures:
฀ 2004
฀ ฀ Inter-฀
฀ U.S.฀ national฀ Worldwide
Decreased฀restaurant฀profit฀ $฀ (18)฀ $฀ (11)฀ $฀ (29)
Increased฀franchise฀fees฀ ฀ 7฀ ฀ 5฀ ฀ 12
Decreased฀general฀and฀฀
฀ administrative฀expenses฀ ฀ —฀ ฀ 6฀ ฀ 6
Decrease฀in฀operating฀profit฀ $฀ (11)฀ $฀ —฀ $฀ (11)
฀ 2003
฀ ฀ Inter-฀
฀ U.S.฀ national฀ Worldwide
Decreased฀restaurant฀profit฀ $฀ (18)฀ $฀ (15)฀ $฀ (33)
Increased฀franchise฀fees฀ ฀ 1฀ ฀ 5฀ ฀ 6
Decreased฀general฀and฀฀
฀ administrative฀expenses฀ ฀ —฀ ฀ 6฀ ฀ 6
Decrease฀in฀operating฀profit฀ $฀ (17)฀ $฀ (4)฀ $฀ (21)
RESULTS฀OF฀OPERATIONS
฀%฀B/(W)฀ %฀B/(W)
฀฀ vs.฀ ฀ vs.฀
฀2004฀ 2003฀ 2003฀ 2002
Company฀sales฀ $฀7,992฀ 7฀ $฀7,441฀ 8
Franchise฀and฀license฀fees฀ ฀1,019฀ 8฀ ฀ 939฀ 9
Revenues฀ $฀9,011฀ 8฀ $฀8,380฀ 8
Company฀restaurant฀profit฀ $฀1,159฀ 5฀ $฀1,104฀ —
%฀of฀Company฀sales฀ 14.5%฀ (0.3)ppts.฀ 14.8%฀ (1.2)ppts.
Operating฀profit฀ ฀1,155฀ 9฀ ฀1,059฀ 3
Interest฀expense,฀net฀ ฀ 129฀ 25฀ ฀ 173฀ (1)
Income฀tax฀provision฀ ฀ 286฀ (7)฀ ฀ 268฀ 3
Income฀before฀cumulative฀effect฀฀
฀ of฀accounting฀change฀ ฀ 740฀ 20฀ ฀ 618฀ 6
Cumulative฀effect฀of฀฀฀
฀ accounting฀change,฀net฀of฀tax฀ ฀ —฀ —฀ ฀ (1)฀ NM
Net฀income฀ $฀ 740฀ 20฀ $฀ 617฀ 6
Diluted฀earnings฀per฀share(a)฀$฀ 2.42฀ 20฀ $฀ 2.02฀ 7
(a)฀See฀Note฀6฀for฀the฀number฀of฀shares฀used฀in฀this฀calculation.
RESTAURANT฀UNIT฀ACTIVITY
฀ ฀ Uncon-฀ ฀ Total฀
฀ ฀ solidated฀ ฀ Excluding฀
Worldwide฀ Company฀ Affiliates฀ Franchisees฀ Licensees
Balance฀at฀end฀of฀2002฀ 7,526฀ 2,148฀ 20,724฀ 30,398
New฀Builds฀ 454฀ 176฀ 868฀ 1,498
Acquisitions฀ 389฀ (736)฀ 345฀ (2)
Refranchising฀ (228)฀ (1)฀ 227฀ (2)
Closures฀ (287)฀ (75)฀ (691)฀ (1,053)
Other฀ —฀ —฀ (2)฀ (2)
Balance฀at฀end฀of฀2003฀ 7,854฀ 1,512฀ 21,471฀ 30,837
New฀Builds฀ 457฀ 178฀ 815฀ 1,450
Acquisitions฀ 72฀ 11฀ (83)฀ —
Refranchising฀ (317)฀ —฀ 316฀ (1)
Closures฀ (319)฀ (31)฀ (651)฀ (1,001)
Other฀ (4)฀ (8)฀ (10)฀ (22)
Balance฀at฀end฀of฀2004฀ 7,743฀ 1,662฀ 21,858฀ 31,263
%฀of฀Total฀ 25%฀ 5%฀ 70%฀ 100%
The฀above฀total฀excludes฀2,345฀and฀2,362฀licensed฀units฀at฀
the฀end฀of฀2004฀and฀2003,฀respectively.
฀ ฀ Uncon-฀ ฀ Total฀
฀ ฀ solidated฀ ฀ Excluding฀
United฀States฀ Company฀ Affiliates฀ Franchisees฀ Licensees
Balance฀at฀end฀of฀2002฀ 5,193฀ 4฀ 13,663฀ 18,860
New฀Builds฀ 142฀ 3฀ 245฀ 390
Acquisitions฀ 106฀ —฀ (108)฀ (2)
Refranchising฀ (150)฀ —฀ 148฀ (2)
Closures฀ (197)฀ (1)฀ (386)฀ (584)
Other฀ —฀ —฀ 4฀ 4
Balance฀at฀end฀of฀2003฀ 5,094฀ 6฀ 13,566฀ 18,666
New฀Builds฀ 146฀ —฀ 227฀ 373
Acquisitions฀ 61฀ —฀ (61)฀ —
Refranchising฀ (113)฀ —฀ 112฀ (1)
Closures฀ (199)฀ (6)฀ (365)฀ (570)
Other฀ —฀ —฀ 3฀ 3
Balance฀at฀end฀of฀2004฀ 4,989฀ —฀ 13,482฀ 18,471
%฀of฀Total฀ 27%฀ —฀ 73%฀ 100%
The฀above฀total฀excludes฀2,139฀and฀2,156฀licensed฀units฀at฀
the฀end฀of฀2004฀and฀2003,฀respectively.
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Yum!฀Brands,฀Inc.