Sonic 2012 Annual Report Download - page 19

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Management's Discussion and Analysis of Financial Condition and Results of Operations
The following non-GAAP adjustments are intended to supplement the presentation of the company’s financial results in
accordance with GAAP. We believe the exclusion of these items in evaluating the change in net income and diluted earnings
per share for the periods below provides useful information to investors and management regarding the underlying business
trends and the performance of our ongoing operations and is helpful for period-to-period and company-to-company comparisons,
which management believes will assist investors in analyzing the financial results for the company and predicting future
performance.
Fiscal Year Ended Fiscal Year Ended
August 31, 2012 August 31, 2011
Net Diluted Net Diluted
Income EPS Income EPS
Reported – GAAP $ 36,085 $ 0.60 $ 19,225 $ 0.31
After-tax net loss from early extinguishment of debt ––14,439 0.24
Tax benefit from favorable tax settlement ––(1,073) (0.02)
Adjusted - Non-GAAP $ 36,085 $ 0.60 $ 32,591 $ 0.53
The following table provides information regarding the number of Company Drive-Ins and Franchise Drive-Ins operating
as of the end of the years indicated as well as the system-wide change in sales and average unit volume. System-wide
information includes both Company Drive-In and Franchise Drive-In information, which we believe is useful in analyzing the
growth of the brand as well as the company’s revenues, since franchisees pay royalties based on a percentage of sales.
System-wide Performance
Year Ended August 31,
($ in thousands) 2012 2011 2010
Percentage increase (decrease) in sales 2.7% 1.9% (5.7)%
System-wide drive-ins in operation (1):
Total at beginning of year 3,561 3,572 3,544
Opened 37 43 85
Closed (net of re-openings) (42) (54) (57)
Total at end of year 3,556 3,561 3,572
Average sales per drive-in: $ 1,066 $ 1,037 $ 1,023
Change in same-store sales (2):2.2% 0.5% (7.8)%
(1) Drive-ins that are temporarily closed for various reasons (repairs, remodeling, relocations, etc.) are not considered closed
unless the company determines that they are unlikely to reopen within a reasonable time.
(2) Represents percentage change for drive-ins open for a minimum of 15 months.
The following table provides information regarding drive-in development across the system.
Year Ended August 31,
2012 2011 2010
New drive-ins:
Company 135
Franchise 36 40 80
System-wide 37 43 85
Rebuilds/relocations:
Company 13–
Franchise 17 11 23
System-wide 18 14 23
17