Papa Johns 2011 Annual Report Download - page 39

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34
Results of Operations
2011 Compared to 2010
Discussion of Revenues
Consolidated revenues increased 8.1% to $1.22 billion in 2011 compared to $1.13 billion in 2010,
primarily consisting of the following:
• Domestic Company-owned restaurant sales increased $22.6 million, or 4.5%, in 2011 primarily
due to an increase in comparable sales of 4.1%.
• North America franchise royalty revenues increased approximately $4.1 million, or 5.8% in 2011
due to an increase in comparable sales of 3.1%, and an increase in the number of franchised
restaurants.
• Domestic commissary sales increased $53.6 million, or 11.8% in 2011 primarily due to an
increase in the prices of certain commodities, most notably cheese, and an increase in sales
volumes.
• International revenues increased $12.1 million, or 26.1% in 2011, primarily due to an increase in
the number of restaurants and an increase in comparable sales of 5.1%, calculated on a constant
dollar basis. In 2010, the international segment included revenues from Company-owned
restaurants located in the United Kingdom, which were sold in the third quarter of 2010.
Discussion of Operating Results
Our income before income taxes totaled $86.3 million in 2011, as compared to $82.3 million in 2010, an
increase of approximately $4.0 million. Excluding the impact of BIBP (income before income taxes of
$6.8 million, excluding the BIBP Settlement), our income before income taxes increased approximately
$10.8 million, or 14.3%. Income before income taxes is summarized in the following table on an
operating segment basis (in thousands):
Increase
2011 2010 (Decrease)
Domestic Company-owned restaurants 28,980$ 31,619$ (2,639)$
Domestic commissaries * 30,532 14,188 16,344
North America franchising 66,222 62,229 3,993
International (165) (4,771) 4,606
All others (441) 1,847 (2,288)
Unallocated corporate expenses (38,243) (43,266) 5,023
Elimination of intersegment profits (610) (519) (91)
Income before income taxes, excluding BIBP 86,275 61,327 24,948
BIBP, a variable interest entity * - 20,954 (20,954)
Total income before income taxes
86,275
$
82,281
$
3,994
$
* The full-year 2010 results for domestic commissaries were reduced by the BIBP Settlement and the
full-year 2010 results for BIBP were increased by the BIBP Settlement. There was no impact on the
consolidated results of operations since PJFS and BIBP are fully consolidated into the Company’s
results.