Papa Johns 2006 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2006 Papa Johns annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

88
22. Segment Information (continued)
(4) The decline in operating results for the 2006 period is principally due to increased costs related to the
development of our support infrastructure throughout the international segment, including the United
Kingdom, to support the accelerated development of both Company-owned and franchised Papa
John’s branded restaurants in our international markets. In addition, we incurred a $470,000 charge
in 2006 related to a reorganization of one of our international operating units.
(5) Represents BIBP’s operating income, net of minority interest income.
(6) Unallocated corporate expenses increased $3.4 million in 2006 and increased $20.1 million in 2005
as compared to 2004. The 2006 increase is due to a $3.0 million increase in equity compensation and
executive performance unit incentive compensation, increased marketing efforts of $2.4 million,
primarily related to non-traditional initiatives, partially offset by a $1.8 million contribution to the
Papa John’s Marketing Fund to fund additional flights related to the launch of Papa’s Perfect Pan
Pizza.
The 2005 increase consisted primarily of the following: an increase in business unit and corporate
management bonuses of $7.3 million as a result of meeting pre-established performance goals; an
increase in employee benefits costs of approximately $1.6 million, which primarily consists of
payroll taxes associated with stock option exercises and an increase in the amount of FICA taxes paid
on employee tips and increased health insurance costs; increased professional fees of $3.7 million
related to consulting expenses associated with certain marketing and franchisee effectiveness
projects; an increase in equity compensation of $2.1 million primarily related to the performance unit
program offered to certain executive officers; a $1.8 million contribution to the Marketing Fund; and
a reduction in administrative expenses allocated to operating units and other expenses of $5.5
million.
23. Quarterly Data - unaudited, in thousands, except per share data
Our quarterly financial data is as follows:
2006 1st 2nd 3rd 4th
Total revenues 242,349$ 241,593$ 239,692$ 277,923$
Operating income (1) 25,208 24,499 20,427 27,821
Income from continuing operations, net of tax (1) 15,613 15,266 13,108 18,999
Basic earnings per common share
from continuing operations (1) 0.47$ 0.47$ 0.41$ 0.60$
Earnings per common share from
continuing operations - assuming dilution (1) 0.46$ 0.46$ 0.40$ 0.59$
2005 1st 2nd 3rd 4th
Total revenues 248,637$ 238,675$ 233,100$ 248,376$
Operating income (2) 16,041 17,479 16,997 22,183
Income from continuing operations, net of tax (2) 9,397 10,417 10,403 14,051
Basic earnings per common share
from continuing operations (2) 0.28$ 0.31$ 0.30$ 0.42$
Earnings per common share from
continuing operations - assuming dilution (2) 0.28$ 0.31$ 0.30$ 0.41$
Quarter
Quarter