Papa Johns 2013 Annual Report Download - page 49

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฀
41
(a)
The฀53
rd
฀week฀of฀operations฀increased฀income฀before฀income฀taxes฀by฀approximately฀$4.1฀million฀
in฀2012฀as฀follows:฀฀
Increase฀
(Decrease)
Domestic฀company-owned฀restaurants 1,609$฀฀฀฀฀฀฀฀฀
Domestic฀commissaries฀ 1,200฀฀฀฀฀฀฀฀฀฀฀
North฀America฀franchising฀ 1,414฀฀฀฀฀฀฀฀฀฀฀
International฀ 414฀฀฀฀฀฀฀฀฀฀฀฀฀฀
All฀others 215฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Unallocated฀corporate฀expenses (707)฀฀฀฀฀฀฀฀฀฀฀฀฀
Income฀before฀income฀taxes 4,145$฀฀฀฀฀฀฀฀฀
฀
(b)
Includes฀ the฀ benefit฀ of฀ a฀ $1.0฀ million฀ advertising฀ credit฀ from฀ PJMF฀ related฀ to฀ the฀ Incentive฀
Contribution฀ in฀ 2012.฀ See฀ “Items฀ Impacting฀ Comparability;฀ Non-GAAP฀ Measures”฀ above฀ for฀
further฀information฀about฀the฀Incentive฀Contribution.฀฀
(c)฀฀Includes฀the฀impact฀of฀the฀Incentive฀Contribution฀in฀2012฀($4.0฀million฀increase฀in฀expense).฀฀
฀
Changes฀in฀income฀before฀income฀taxes฀for฀2012฀are฀summarized฀on฀a฀segment฀basis฀as฀follows:฀
฀
•
Domestic฀ Company-owned฀ Restaurant฀ Segment.฀ Domestic฀ Company-owned฀ restaurants’฀
income฀before฀income฀taxes฀increased฀$9.1฀million฀from฀the฀prior฀comparable฀period,฀including฀
approximately฀ $1.6฀ million฀ related฀ to฀ the฀ 53
rd
฀ week฀ of฀ operations.฀ The฀ remaining฀ increase฀ was฀
due฀ to฀the฀previously฀noted฀comparable฀ sales฀increase,฀favorable฀ commodity฀costs,฀ and฀ various฀
supplier฀incentives.฀฀
•
Domestic฀ Commissary฀ Segment.฀ Domestic฀ commissaries’฀ income฀ before฀ income฀ taxes฀
increased฀$3.8฀million฀in฀2012฀as฀compared฀to฀the฀comparable฀2011฀period.฀Approximately฀$1.2฀
million฀ of฀ the฀ increase฀ was฀ due฀ to฀ the฀ impact฀ of฀ the฀ 53
rd
฀ week฀ of฀ operations.฀ The฀ remaining฀
increase฀was฀primarily฀due฀to฀higher฀commissary฀product฀volumes฀resulting฀from฀increased฀sales฀
volumes฀from฀the฀previously฀noted฀increase฀in฀net฀units฀and฀comparable฀sales.฀฀
•
North฀America฀Franchising฀Segment.฀North฀America฀franchising฀income฀before฀income฀taxes฀
increased฀approximately฀$3.1฀million฀in฀2012,฀including฀approximately฀$1.4฀million฀related฀to฀the฀
53
rd
฀ week฀ of฀ operations฀ in฀ 2012.฀The฀ remaining฀ increase฀ was฀ due฀ to฀ the฀ previously฀ mentioned฀
royalty฀revenue฀increase,฀partially฀offset฀by฀both฀an฀increase฀in฀development฀incentive฀costs฀and฀a฀
reduction฀ in฀ royalties฀ attributable฀ to฀ the฀ Company’s฀ net฀ acquisition฀ of฀ the฀ 50฀ Denver฀ and฀
Minneapolis฀restaurants.฀
฀
•
International฀ Segment.฀ The฀ international฀ segment฀ reported฀ income฀ before฀ income฀ taxes฀ of฀
approximately฀$3.1฀million฀in฀2012฀compared฀to฀a฀loss฀of฀approximately฀$165,000฀in฀2011.฀The฀
improvement฀in฀operating฀results฀of฀$3.2฀million฀was฀primarily฀due฀to฀increased฀royalties฀due฀to฀
growth฀in฀the฀number฀of฀units฀and฀a฀comparable฀sales฀increase฀of฀7.1%,฀and฀improved฀operating฀
results฀ in฀ our฀ United฀ Kingdom฀ commissary.฀ The฀ 53
rd
฀ week฀ of฀ operations฀ increased฀ operating฀
results฀by฀approximately฀$400,000฀in฀2012.฀
฀
•
All฀Others฀Segment.฀The฀“All฀others”฀segment฀reported฀operating฀income฀of฀approximately฀$2.9฀
million฀ in฀ 2012,฀ representing฀ an฀ increase฀ of฀ approximately฀ $3.3฀ million,฀ as฀ compared฀ to฀ the฀
corresponding฀2011฀period.฀The฀increase฀was฀primarily฀due฀to฀an฀improvement฀in฀our฀online฀and฀
mobile฀ ordering฀ (“eCommerce”)฀ business.฀ This฀ improvement฀ was฀ somewhat฀ offset฀ by฀ reduced฀
operating฀ results฀ at฀ our฀ wholly-owned฀ print฀ and฀ promotions฀ subsidiary,฀ Preferred฀ Marketing฀
Solutions฀(“Preferred”).
฀฀
฀ ฀