Popeye's 2014 Annual Report Download - page 47

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29
(in millions, except per share data) 2014 2013
Net income $ 38.0 $ 34.1
Other expense (income), net 1.2 0.3
Interest expense associated with 2010 credit facility retirement — 0.4
Deferred tax liability adjustment 0.5 —
Tax effect (0.5)(0.3)
Adjusted net income $ 39.2 $ 34.5
Adjusted earnings per diluted share $ 1.65 $ 1.43
Weighted average diluted shares outstanding 23.8 24.1
Operating EBITDA: Calculation and Definition
The Company defines operating EBITDA as “earnings before interest expense, taxes, depreciation and amortization, and other
expenses (income), net.” The following table reconciles on a historical basis for fiscal years 2014 and 2013, the Company’s
operating EBITDA on a consolidated basis to the line on its consolidated statement of operations entitled net income, which the
Company believes is the most directly comparable GAAP measure on its consolidated statement of operations. Operating EBITDA
margin is defined as operating EBITDA divided by total revenues.
(dollars in millions) 2014 2013
Net income $ 38.0 $ 34.1
Interest expense, net 3.0 3.7
Income tax expense 23.8 20.4
Depreciation and amortization 8.7 6.7
Other expenses (income), net 1.2 0.3
Operating EBITDA $ 74.7 $ 65.2
Total Revenues $235.6 $206.0
Operating EBITDA margin 31.7% 31.7%
Company-operated restaurant operating profit: Calculation and Definition
The Company defines company-operated restaurant operating profit as sales by company-operated restaurants minus restaurant
food, beverages and packaging minus restaurant employee, occupancy and other expenses. The following table reconciles on a
historical basis for fiscal years 2014, 2013 and 2012, the Company’s company-operated restaurant operating profit to the line item
on its consolidated statement of operations entitled sales by company-operated restaurants, which the Company believes is the
most directly comparable GAAP measure on its consolidated statement of operations. Company-operated restaurant operating
profit margin is defined as company-operated restaurant operating profit divided by sales by company-operated restaurants.
(dollars in millions) 2014 2013 2012
Sales by company-operated restaurants $ 97.2 $ 78.7 $ 64.0
Restaurant food, beverages and packaging (32.0)(26.1)(21.7)
Restaurant employee, occupancy and other expenses (46.8)(37.9)(31.2)
Company-operated restaurant operating profit $ 18.4 $ 14.7 $ 11.1
Company-operated restaurant operating profit margin 18.9% 18.7% 17.3%