Sonic 2014 Annual Report Download - page 18

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Management’s Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
Revenues. The following table sets forth the components of revenue for the reported periods and the relative change between
the comparable periods.
Revenues Percent
Year Ended August 31, Increase Increase
($ in thousands) 2014 2013 (Decrease) (Decrease)
Revenues:
Company Drive-In sales $ 405,363 $ 402,296 $ 3,067 0.8 %
Franchise Drive-Ins:
Franchise royalties 137,125 130,009 7,116 5.5
Franchise fees 1,291 728 563 77.3
Lease revenue 4,291 4,785 (494) (10.3)
Other 4,279 4,767 (488) (10.2)
Total revenues $ 552,349 $ 542,585 $ 9,764 1.8 %
Revenues Percent
Year Ended August 31, Increase Increase
($ in thousands) 2013 2012 (Decrease) (Decrease)
Revenues:
Company Drive-In sales $ 402,296 $ 404,443 $ (2,147) (0.5)%
Franchise Drive-Ins:
Franchise royalties 130,009 125,989 4,020 3.2
Franchise fees 728 2,024 (1,296) (64.0)
Lease revenue 4,785 6,575 (1,790) (27.2)
Other 4,767 4,699 68 1.4
Total revenues $ 542,585 $ 543,730 $ (1,145) (0.2)%
The following table reflects the changes in sales and same-store sales at Company Drive-Ins. It also presents information about
average unit volumes and the number of Company Drive-Ins, which is useful in analyzing the growth of Company Drive-In sales.
Company Drive-In Sales
Year Ended August 31,
($ in thousands) 2014 2013 2012
Company Drive-In sales $ 405,363 $ 402,296 $ 404,443
Percentage increase (decrease) 0.8 % (0.5)% (1.6)%
Company Drive-Ins in operation(1):
Total at beginning of year 396 409 446
Opened 3 2 1
Acquired from (sold to) franchisees, net (7) 1 (35)
Closed (net of re-openings) (1) (16) (3)
Total at end of year 391 396 409
Average sales per Company Drive-In $ 1,043 $ 990 $ 958
Change in same-store sales(2) 3.5% 2.5% 2.8%
(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.
16