Popeye's 2015 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2015 Popeye's 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 88

  • 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

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 the fiscal years 2015 and 2014 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. Operating EBITDA margin is defined as operating
EBITDA divided by total revenues.
(Dollars in millions) 2015 2014
Net income $ 44.1 $ 38.0
Interest expense, net 3.7 3.0
Income tax expense 26.5 23.8
Depreciation and amortization 9.7 8.7
Other expenses (income), net — 1.2
Operating EBITDA $ 84.0 $ 74.7
Total revenues $259.0 $ 235.6
Operating EBITDA margin 32.4% 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 2015, 2014 and 2013, 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. Company-operated restaurant operating profit margin is defined as Company-
operated restaurant operating profit divided by sales by Company-operated restaurants.
(Dollars in millions) 2015 2014 2013
Sales by company-operated restaurants $109.5 $ 97.2 $ 78.7
Restaurant food, beverages and packaging (35.3)(32.0)(26.1)
Restaurant employee, occupancy and other expenses (52.3)(46.8)(37.9)
Company-operated restaurant operating profit $ 21.9 $ 18.4 $ 14.7
Company-operated restaurant operating profit margin 20.0% 18.9% 18.7%
Free Cash Flow: Calculation and Definition
The Company defines free cash flow as net income plus depreciation and amortization plus stock-based compensation expense
minus maintenance capital expenditures which includes: for fiscal 2015, $0.4 million of information technology hardware and
software and $1.5 million in other capital assets to maintain, replace and extend the lives of company-operated restaurant and
corporate facilities and equipment, and for fiscal 2014, $0.6 million in Company-operated restaurant reimages, $0.8 million of
information technology hardware and software and $2.6 million in other capital assets to maintain, replace and extend the lives
of company-operated restaurant and corporate facilities and equipment. In 2015, maintenance capital expenditures exclude $10.9
million for the construction of new company-operated restaurants. In 2014, maintenance capital expenditures exclude $20.9
million for the construction of new company-operated restaurants and $2.9 million related to the acquired restaurants in Minnesota
and California.
29