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฀
29
Items฀Impacting฀Comparability;฀Non-GAAP฀Measures฀฀
฀
The฀ following฀ table฀ reconciles฀ our฀ financial฀ results฀ as฀ reported฀ under฀ GAAP฀ to฀ certain฀ non-GAAP฀
measures.฀We฀present฀these฀non-GAAP฀measures฀to฀adjust฀for฀certain฀items฀which฀we฀believe฀impact฀the฀
comparability฀of฀our฀results฀of฀operations.฀฀
Year฀Ended
Dec.฀29, Dec.฀30, Dec.฀25,
(In฀thousands,฀except฀per฀share฀amounts) 2013 2012 2011
Total฀revenues,฀as฀reported 1,439,022$฀฀฀฀฀ 1,342,653$฀฀฀฀฀ 1,217,882$฀฀฀฀฀
53rd฀week฀of฀operations฀(a) -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ (21,500)฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Total฀revenues,฀as฀adjusted
1,439,022$฀฀฀฀฀ 1,321,153$฀฀฀฀฀ 1,217,882$฀฀฀฀฀
Income฀before฀income฀taxes,฀as฀reported 106,109$฀฀฀฀฀฀฀฀ 98,395$฀฀฀฀฀฀฀฀฀฀ 84,791$฀฀฀฀฀฀฀฀฀฀
53rd฀week฀of฀operations฀(a) -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ (4,145)฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Incentive฀Contribution฀(b) (1,000)฀฀฀฀฀฀฀฀฀฀฀฀฀ 2,971฀฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Income฀before฀income฀taxes,฀as฀adjusted
105,109$฀฀฀฀฀฀฀฀ 97,221$฀฀฀฀฀฀฀฀฀฀ 84,791$฀฀฀฀฀฀฀฀฀฀
Net฀income,฀as฀reported 69,537$฀฀฀฀฀฀฀฀฀฀ 61,660$฀฀฀฀฀฀฀฀฀฀ 54,735$฀฀฀฀฀฀฀฀฀฀
53rd฀week฀of฀operations฀(a) -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ (2,634)฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Incentive฀Contribution฀(b) (660)฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 1,955฀฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Net฀income,฀as฀adjusted 68,877$฀฀฀฀฀฀฀฀฀฀ 60,981$฀฀฀฀฀฀฀฀฀฀ 54,735$฀฀฀฀฀฀฀฀฀฀
Earnings฀per฀diluted฀common฀share,฀as฀reported 1.55$฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 1.29$฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 1.08$฀฀฀฀฀฀฀฀฀฀฀฀฀฀
53rd฀week฀of฀operations฀(a) -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ (0.05)฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Incentive฀Contribution฀(b) (0.02)฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 0.04฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ -฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Earnings฀per฀diluted฀common฀share,฀as฀adjusted
1.53$฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 1.28$฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 1.08$฀฀฀฀฀฀฀฀฀฀฀฀฀฀
฀
(a)
The฀Company฀follows฀a฀fiscal฀year฀ending฀on฀the฀last฀Sunday฀of฀December,฀generally฀consisting฀of฀52฀
weeks฀made฀up฀of฀four฀13-week฀quarters.฀In฀2012,฀the฀Company’s฀fiscal฀year฀consisted฀of฀53฀weeks,฀
with฀the฀additional฀week฀added฀to฀the฀fourth฀quarter฀(14฀weeks)฀results.฀The฀2012฀impact฀of฀the฀53
rd
฀
week฀on฀income฀before฀income฀taxes฀was฀an฀increase฀of฀$4.1฀million,฀or฀$0.05฀earnings฀per฀diluted฀
common฀share.฀
(b)
In฀ connection฀ with฀ a฀ new฀ multi-year฀ supplier฀ agreement,฀ the฀ Company฀ received฀ a฀ $5.0฀ million฀
supplier฀ marketing฀ payment฀ in฀ 2012.฀ The฀ Company฀ is฀recognizing฀ the฀ supplier฀ marketing฀ payment฀
evenly฀ as฀ income฀ over฀ the฀ five-year฀ term฀ of฀ the฀ agreement฀ ($1.0฀ million฀ per฀ year).฀ In฀ 2012,฀ the฀
Company฀contributed฀the฀supplier฀marketing฀payment฀to฀the฀Papa฀John’s฀Marketing฀Fund฀(“PJMF”),฀
an฀ unconsolidated฀ nonstock฀ corporation฀ designed฀ to฀ operate฀ at฀ break฀ even฀ for฀ the฀ purpose฀ of฀
designing฀ and฀ administering฀ advertising฀ and฀ promotional฀ programs฀ for฀ all฀ participating฀ domestic฀
restaurants.฀The฀Company’s฀contribution฀to฀PJMF฀was฀fully฀expensed฀in฀2012.฀
฀
PJMF฀ elected฀ to฀ distribute฀ the฀ $5.0฀ million฀ supplier฀ marketing฀ payment฀ to฀ the฀ domestic฀ system฀ as฀
advertising฀ credits฀ in฀ 2012.฀ Our฀ domestic฀ Company-owned฀ restaurants’฀ portion฀ of฀ the฀ advertising฀
credits฀resulted฀in฀an฀increase฀in฀income฀before฀income฀taxes฀of฀approximately฀$1.0฀million฀in฀2012.฀
฀
The฀ overall฀ impact฀ of฀ these฀ transactions฀ described฀ above,฀ which฀ are฀ collectively฀ defined฀ as฀ the฀
“Incentive฀ Contribution,”฀ was฀ an฀ increase฀ in฀ income฀ before฀ income฀ taxes฀ of฀ approximately฀ $1.0฀