Sonic 2007 Annual Report Download - page 2

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2007 2006 Change
($ in thousands, except per share data)
Operations (for the year)
Total revenues $ 770,469 $693,262 11%
Income from operations $ 145,289 $131,627 10%
Net income per diluted share $ 0.91 $ 0.88 3%
Net income per diluted share,
excluding debt extinguishment
charges 1$0.96 $0.88 9%
Weighted average diluted shares
outstanding 70,592 89,239 -21%
System Information (for the year or at year's end)
Partner drive-ins 2654 623 5%
Franchise drive-ins 2,689 2,565 5%
System-wide drive-ins 33,343 3,188 5%
System-wide average drive-in sales 3$ 1,109 $ 1,070 4%
Change in system-wide sales 38.6%10.7%
Change in system-wide same-store sales 3, 4 3.1% 4.5%
Financial Highlights
1 Excludes $0.05 in special items
associated with Sonic's tender offer
and subsequent financing activities.
Net income per diluted share,
excluding debt extinguishment
charges, is a non-GAAP financial
measure. We believe net income per
diluted share,excluding debt
extinguishment charges, provides
additional insight into the strength
of our operations and aids in the
comparability of current- and prior-
year results.
2 Partner drive-ins are those Sonic
Drive-Ins in which we own a majority
interest, typically at least 60%. Most
supervisors and managers of partner
drive-ins own a minority equity
interest.
3 System-wide information, which
combines partner drive-in and
franchise drive-in information, is a
non-GAAP measure. We believe
system-wide information is useful in
analyzing the growth of the Sonic
brand as well as our revenues, since
franchisees pay royalties based on a
percentage of sales.
4 Changes in same-store sales based
on drive-ins open for at least 15
months.
Sonic began in 1953 in Shawnee, Oklahoma. Today, we franchise and operate the largest chain of drive-
in restaurants in the country, with more than 3,300 Sonic Drive-Ins from coast to coast.
Our drive-in experience, together with a unique menu and personalized Carhop service, position us as
one of the most highly differentiated concepts in the quick-service restaurant (QSR) industry. At a typical
Sonic Drive-In, customers park in one of 24 to 36 canopy-covered spaces and place orders through an
intercom speaker system. A smiling Carhop delivers the customer's order car-side, usually within four
minutes. Customers also may enjoy drive-thru service at many Sonic locations.
Sonic Drive-Ins feature signature menu items, offering made-when-you-order Extra-Long Chili Cheese
Coneys, hamburgers, wraps and other sandwiches, hand-battered Onion Rings, Tater Tots and a full
breakfast menu. We are known for our variety of Frozen Favorites®treats and Fountain Favorites®
drinks, too, like Cherry Limeades, Slushes and Cream Pie Shakes, making Sonic Your Ultimate Drink Stop®.
Sonic also offers a variety of choice for health-conscious customers, including Fresh Tastes®salads and
several low-calorie drinks, including a diet version of our classic Cherry Limeade.
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