Pizza Hut 2004 Annual Report Download - page 79

Selected฀Financial฀Data
฀ Fiscal฀Year
(in฀millions,฀except฀per฀share฀and฀unit฀amounts)฀ 2004฀ 2003฀ 2002฀ 2001฀ 2000
Summary฀of฀Operations
Revenues
฀ Company฀sales฀ $฀7,992฀ $฀7,441฀ $฀6,891฀ $฀6,138฀ $฀6,305
฀ Franchise฀and฀license฀fees฀ ฀1,019฀ ฀ 939฀ ฀ 866฀ ฀ 815฀ ฀ 788
฀ Total฀฀ ฀9,011฀ ฀8,380฀ ฀7,757฀ ฀6,953฀ ฀7,093
Facility฀actions฀(a)฀฀ (26)฀ ฀ (36)฀ ฀ (32)฀ ฀ (1)฀ ฀ 176
Wrench฀litigation฀income฀(expense)฀(b)฀฀ 14฀ ฀ (42)฀ ฀ —฀ ฀ —฀ ฀ —
AmeriServe฀and฀other฀(charges)฀credits฀(c)฀฀ 16฀ ฀ 26฀ ฀ 27฀ ฀ 3฀ ฀ (204)
Operating฀profit฀ ฀1,155฀ ฀1,059฀ ฀1,030฀ ฀ 891฀ ฀ 860
Interest฀expense,฀net฀ ฀ 129฀ ฀ 173฀ ฀ 172฀ ฀ 158฀ ฀ 176
Income฀before฀income฀taxes฀and฀฀
฀ cumulative฀effect฀of฀accounting฀change฀ ฀1,026฀ ฀ 886฀ ฀ 858฀ ฀ 733฀ ฀ 684
Income฀before฀cumulative฀effect฀of฀accounting฀change฀ ฀ 740฀ ฀ 618฀ ฀ 583฀ ฀ 492฀ ฀ 413
Cumulative฀effect฀of฀accounting฀change,฀net฀of฀tax฀(d)฀฀ —฀ ฀ (1)฀ ฀ —฀ ฀ —฀ ฀ —
Net฀income฀ ฀ 740฀ ฀ 617฀ ฀ 583฀ ฀ 492฀ ฀ 413
Basic฀earnings฀per฀common฀share฀(e)฀฀ 2.54฀ ฀ 2.10฀ ฀ 1.97฀ ฀ 1.68฀ ฀ 1.41
Diluted฀earnings฀per฀common฀share฀(e)฀฀ 2.42฀ ฀ 2.02฀ ฀ 1.88฀ ฀ 1.62฀ ฀ 1.39
Cash฀Flow฀Data
Provided฀by฀operating฀activities฀ $฀1,131฀ $฀1,053฀ $฀1,088฀ $฀ 832฀ $฀ 491
Capital฀spending,฀excluding฀acquisitions฀ ฀ 645฀ ฀ 663฀ ฀ 760฀ ฀ 636฀ ฀ 572
Proceeds฀from฀refranchising฀of฀restaurants฀ ฀ 140฀ ฀ 92฀ ฀ 81฀ ฀ 111฀ ฀ 381
Balance฀Sheet
Total฀assets฀ $฀5,696฀ $฀5,620฀ $฀5,400฀ $฀4,425฀ $฀4,149
Long-term฀debt฀ ฀1,731฀ ฀2,056฀ ฀2,299฀ ฀1,552฀ ฀2,397
Total฀debt฀ ฀1,742฀ ฀2,066฀ ฀2,445฀ ฀2,248฀ ฀2,487
Other฀Data
Number฀of฀stores฀at฀year฀end
฀ Company฀ 7,743฀ 7,854฀ 7,526฀ 6,435฀ 6,123
฀ Unconsolidated฀Affiliates฀ 1,662฀ 1,512฀ 2,148฀ 2,000฀ 1,844
฀ Franchisees฀฀ 21,858฀ 21,471฀ 20,724฀ 19,263฀ 19,287
฀ Licensees฀ 2,345฀ 2,362฀ 2,526฀ 2,791฀ 3,163
฀ System฀ 33,608฀ 33,199฀ 32,924฀ 30,489฀ 30,417
U.S.฀Company฀blended฀฀same฀store฀sales฀growth฀(f)฀฀ 3%฀ ฀ —฀ ฀ 2%฀ ฀ 1%฀ ฀ (2)%
International฀system฀sales฀growth฀(g)
฀ Reported฀ ฀ 15%฀ ฀ 14%฀ ฀ 8%฀ ฀ 1%฀ ฀ 6%
฀ Local฀currency(h)฀฀ 9%฀ ฀ 7%฀ ฀ 9%฀ ฀ 8%฀ ฀ 8%
Shares฀outstanding฀at฀year฀end฀(e)฀฀ 290฀ ฀ 292฀ ฀ 294฀ ฀ 293฀ ฀ 293
Cash฀dividends฀declared฀per฀common฀share฀ $฀ 0.30฀ ฀ —฀ ฀ —฀ ฀ —฀ ฀ —
Market฀price฀per฀share฀at฀year฀end฀(e)฀$฀46.27฀ $฀33.64฀ $฀24.12฀ $฀24.62฀ $฀16.50
Fiscal฀years฀2004,฀2003,฀2002฀and฀2001฀include฀52฀weeks฀and฀fiscal฀year฀2000฀includes฀53฀weeks.฀From฀May฀7,฀2002,฀results฀include฀Long฀John฀Silver’s฀(“LJS”)฀and฀A&W฀
All-American฀Food฀Restaurants฀(“A&W”),฀which฀were฀added฀when฀we฀acquired฀Yorkshire฀Global฀Restaurants,฀Inc.฀฀Fiscal฀year฀2002฀includes฀the฀impact฀of฀the฀adoption฀of฀
Statement฀of฀Financial฀Accounting฀Standards฀(“SFAS”)฀No.฀142,฀“Goodwill฀and฀Other฀Intangible฀Assets”฀(“SFAS฀142”).฀฀As฀a฀result฀we฀ceased฀amortization฀of฀goodwill฀and฀
indefinite-lived฀assets฀beginning฀December฀30,฀2001.฀฀If฀SFAS฀142฀had฀been฀effective฀for฀2001฀and฀2000,฀reported฀net฀income฀would฀have฀increased฀$26฀million฀and฀$24฀million,฀
respectively.฀฀Both฀basic฀earnings฀per฀share฀and฀diluted฀earnings฀per฀share฀would฀have฀increased฀$0.09฀and฀$0.08฀in฀2001฀and฀2000,฀respectively.฀฀The฀selected฀financial฀data฀
should฀be฀read฀in฀conjunction฀with฀the฀Consolidated฀Financial฀Statements฀and฀the฀Notes฀thereto.
(a)฀See฀Note฀7฀to฀the฀Consolidated฀Financial฀Statements฀for฀a฀description฀of฀Facility฀actions฀in฀2004,฀2003฀and฀2002.฀
(b)฀See฀Note฀24฀to฀the฀Consolidated฀Financial฀Statements฀for฀a฀description฀of฀Wrench฀litigation฀in฀2004฀and฀2003.฀
(c)฀See฀Note฀7฀to฀the฀Consolidated฀Financial฀Statements฀for฀a฀description฀of฀AmeriServe฀and฀other฀charges฀(credits)฀in฀2004,฀2003฀and฀2002.฀
(d)฀Fiscal฀year฀2003฀includes฀the฀impact฀of฀the฀adoption฀of฀SFAS฀No.฀143,฀“Accounting฀for฀Asset฀Retirement฀Obligations.”฀See฀Note฀2฀to฀the฀Consolidated฀Financial฀Statements฀
for฀further฀discussion.
(e)฀Per฀share฀and฀share฀amounts฀have฀been฀adjusted฀to฀reflect฀the฀two-for-one฀stock฀split฀distributed฀on฀June฀17,฀2002.
(f)฀U.S.฀Company฀blended฀same-store฀sales฀growth฀includes฀the฀results฀of฀Company฀owned฀KFC,฀Pizza฀Hut฀and฀Taco฀Bell฀restaurants฀that฀have฀been฀open฀one฀year฀or฀more.฀฀LJS฀
and฀A&W฀are฀not฀included.
(g)฀International฀system฀sales฀growth฀includes฀the฀results฀of฀all฀international฀restaurants฀regardless฀of฀ownership,฀including฀Company฀owned,฀franchise,฀unconsolidated฀affiliate฀
and฀license฀restaurants.฀Sales฀of฀franchise,฀unconsolidated฀affiliate฀and฀license฀restaurants฀generate฀franchise฀and฀license฀fees฀for฀the฀Company฀(typically฀at฀a฀rate฀of฀4%฀
to฀6%฀of฀sales).฀฀Franchise,฀unconsolidated฀affiliate฀and฀license฀restaurant฀sales฀are฀not฀included฀in฀Company฀sales฀we฀present฀on฀the฀Consolidated฀Statements฀of฀Income;฀
however,฀the฀fees฀are฀included฀in฀the฀Company’s฀revenues.฀฀฀We฀believe฀system฀sales฀growth฀is฀useful฀to฀investors฀as฀a฀significant฀indicator฀of฀the฀overall฀strength฀of฀our฀
business฀as฀it฀incorporates฀all฀our฀revenue฀drivers,฀Company฀and฀franchise฀same฀store฀sales฀as฀well฀as฀net฀unit฀development.฀฀
(h)฀Local฀currency฀represents฀the฀percentage฀change฀excluding฀the฀impact฀of฀foreign฀currency฀translation.฀฀These฀amounts฀are฀derived฀by฀translating฀current฀year฀results฀at฀prior฀
year฀average฀exchange฀rates.฀฀We฀believe฀the฀elimination฀of฀the฀foreign฀currency฀translation฀impact฀provides฀better฀year-to-year฀comparability฀without฀the฀distortion฀of฀foreign฀
currency฀fluctuations.
77
Yum!฀Brands,฀Inc.