Papa Johns 2006 Annual Report Download - page 42

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39
The following table summarizes the impact of VIEs, prior to required consolidating eliminations, on our
consolidated statements of income as of December 25, 2005 and December 26, 2004 (in thousands):
BIBP Franchisees Total BIBP Franchisees Total
Variable interest entities
restaurant sales -$ 11,713$ 11,713$ -$ 14,387$ 14,387$
BIBP sales 151,903 - 151,903 138,202 - 138,202
Total revenues 151,903 11,713 163,616 138,202 14,387 152,589
Operating expenses 145,962 10,997 156,959 160,944 13,256 174,200
General and administrative expenses
137 712 849 150 1,120 1,270
Other general expenses (income) - (75) (75) - (542) (542)
Depreciation and amortization - 78 78 - 549 549
Total costs and expenses 146,099 11,712 157,811 161,094 14,383 175,477
Operating income (loss) 5,804 1 5,805 (22,892) 4 (22,888)
Interest expense (1,332) (1) (1,333) (567) (4) (571)
Income (loss) before income taxes 4,472$ -$ 4,472$ (23,459)$ -$ (23,459)$
Year Ended December 25, 2005 Year Ended December 26, 2004
Discontinued Operations
The following summarizes the results of our Perfect Pizza discontinued operations for the years ended
December 25, 2005 and December 26, 2004 (in thousands, except per share data):
2005 2004
Net sales 13,632$ 17,080$
Operating expenses 8,837 10,392
G&A expenses 1,658 1,411
Other expenses 299 182
Income before income taxes 2,838 5,095
Income tax expense 1,050 1,911
Net income from discontinued operations
1,788
$
3,184
$
Basic earnings per common share
0.05
$
0.09
$
Earnings per common share - assuming dilution
0.05
$
0.09
$
Summary of Operating Results from Continuing Operations
Total revenues increased 4.7% to $968.8 million in 2005 compared to $925.3 million in 2004, primarily
consisting of the following:
• A $21.8 million increase in Company-owned restaurant revenues as compared to the prior year,
primarily due to an increase in comparable sales of 7.4%, partially offset by a decline in units
due to the sale of 84 restaurants at the beginning of the fourth quarter in 2005.
• A $21.7 million increase in domestic commissary sales, reflecting the impact of higher
commodity prices, principally cheese.