Papa Johns 2004 Annual Report Download - page 41

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40
Item 8. Financial Statements and Supplementary Data
Papa John’s International, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share amounts) Year Ended
December 26, December 28, December 29,
2004 2003 2002
Domestic revenues:
Company-owned restaurant sales 412,676$ 416,049$ 429,813$
Variable interest entities restaurant sales 14,387 - -
Franchise royalties 50,292 49,851 51,386
Franchise and development fees 2,475 1,475 1,734
Commissary sales 376,642 369,825 381,217
Other sales 53,117 48,541 50,055
International revenues:
Royalties and franchise and development fees 7,516 6,297 5,846
Restaurant and commissary sales 25,321 25,340 26,168
Total revenues 942,426 917,378 946,219
Costs and expenses:
Domestic Company-owned restaurant expenses:
Cost of sales 99,743 92,488 98,717
Salaries and benefits 130,642 135,295 125,473
Advertising and related costs 38,258 38,329 35,810
Occupancy costs 25,950 25,406 23,571
Other operating expenses 54,015 54,405 56,517
Total domestic Company-owned restaurant expenses 348,608 345,923 340,088
Variable interest entities restaurant expenses 12,667 - -
Domestic commissary and other expenses:
Cost of sales 309,746 292,226 309,021
Salaries and benefits 28,458 28,925 29,823
Other operating expenses 57,100 59,127 49,831
Total domestic commissary and other expenses 395,304 380,278 388,675
Loss from the franchise cheese purchasing program, net of minority interest 16,599 - -
International operating expenses 21,024 21,736 21,918
General and administrative expenses 72,458 67,191 72,403
Provision for uncollectible notes receivable 638 1,868 2,838
Restaurant closure, impairment and disposition losses (gains) (203) 5,469 1,051
Other general expenses 2,395 3,314 6,078
Depreciation and amortization 31,159 31,059 31,741
Total costs and expenses 900,649 856,838 864,792
Operating income 41,777 60,540 81,427
Investment income 689 672 1,126
Interest expense (5,313) (6,851) (7,677)
Income before income taxes and cumulative effect of a
change in accounting principle 37,153 54,361 74,876
Income tax expense 13,932 20,385 28,079
Income before cumulative effect of a change in accounting principle 23,221 33,976 46,797
Cumulative effect of accounting change, net of tax - (413) -
Net income 23,221$ 33,563$ 46,797$
Basic earnings per common share:
Income before cumulative effect of a change in accounting principle 1.35$ 1.89$ 2.33$
Cumulative effect of accounting change, net of tax - (0.02) -
Basic earnings per common share 1.35$ 1.87$ 2.33$
Earnings per common share - assuming dilution:
Income before cumulative effect of a change in accounting principle 1.33$ 1.88$ 2.31$
Cumulative effect of accounting change, net of tax - (0.02) -
Earnings per common share - assuming dilution 1.33$ 1.86$ 2.31$
Basic weighted average shares outstanding 17,207 17,938 20,068
Diluted weighted average shares oustanding 17,405 18,037 20,300
Supplemental data (see Note 15):
Revenues - affiliates 72,049$ 88,056$ 108,755$
Other income - affiliates 270 285 264
See accompanying notes.