Quarter Highlights:
- Earnings per share of $.23 vs $.27 in 1999
- 6 Restaurants Opened and One Acquired
- Comparable Restaurant Sales Decrease of 0.1%
PJ America, Inc. (Nasdaq:PJAM – news), the largest franchisee of Papa John’s International, Inc. announced record revenues of $27.6 million and net income of $1.09 million for the second quarter ended June 25, 2000. These results represent a sales increase of 15% and net income decrease of 33%, respectively, over revenues of $24.0 million and net income of $1.62 million for the same period in 1999. Net income per share (diluted) for the quarter decreased 15% to 23 cents compared to 27 cents for the second quarter of 1999. Net income per share was 45 cents for the first six months of 2000 compared to 51 cents for the same period in 1999, prior to the cumulative effect change in accounting principle.
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Comparable restaurant sales for the quarter decreased 0.1%. During the second quarter, six restaurants were opened, and one restaurant was acquired. At June 25, 2000, there were 166 Papa John’s restaurants operated by the Company in nine states and Puerto Rico.
During the second quarter, the Company repurchased 575,000 shares for $6.1 million. At June 25, 2000, the Company had 4.59 million shares outstanding. Cumulatively through the second quarter of 2000, the Company has repurchased a total of 1.36 million shares for $17.1 million. The Board has authorized a share repurchase program up to a total of $20 million; therefore $2.9 million is available for additional share repurchases.
The Company’s President and C.E.O., Doug Stephens, said, “Our sales during the second quarter continued to be less than management’s expectations. Our focus on increasing transaction counts through increased marketing and discounting has only been moderately successful as the pizza segment continues to be extremely price point competitive.”
This information contains forward-looking statements within the meaning of Section 27A of The Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect management’s expectations based upon currently available information and data; however, actual results are subject to future events and uncertainties, which could cause actual results to materially differ from those projected in these statements. Factors that can cause actual results to materially differ include: additional unforeseen costs, expenses which may be incurred with respect to the change of the Papa John’s slogan as a result of Papa John’s International, Inc.’s litigation with Pizza Hut, Inc.; increased advertising, promotions and discounting by competitors which may adversely affect sales; the ability of the Company to open new restaurants and operate new and existing restaurants profitably; increases in food, labor, employee benefits and similar costs; economic and political conditions in the territories in which the Company operates; and new product and concept development by food industry competitors. Further information regarding factors that could affect the Company’s financial and other results is included in the Company’s forms 10-Q and 10-K, filed with the Securities and Exchange Commission.
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By GlobalData
Three Months Ended Six Months Ended
—————— —————-
June 25, June 27, June 25, June 27,
2000 1999 2000 1999
——– ——– ——– ——–
Restaurant sales $ 27,642 $ 24,001 $ 53,466 $ 45,857
======== ======== ======== ========
Net income before cumulative
effect of change in
accounting principle 1,092 1,620 2,298 3,095
Cumulative effect of change
in accounting principle,
net of taxes – – – (181)
——– ——– ——– ——–
Net income $ 1,092 $ 1,620 $ 2,298 $ 2,914
======== ======== ======== ========
Diluted earnings per share
before cumulative effect of
change in accounting
principle $ 0.23 $ 0.27 $ 0.45 $ 0.51
Cumulative effect of change
in accounting principle,
net of taxes – – – (0.03)
——– ——– ——– ——–
Diluted earnings per share $ 0.23 $ 0.27 $ 0.45 $ 0.48
======== ======== ======== ========
Weighted average shares –
diluted 4,812 6,042 5,062 6,019
======== ======== ======== ========
(All data above in thousands except per share amounts)
PJ AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
—————— —————–
June 25, June 27, June 25, June 27,
2000 1999 2000 1999
——– ——– ——– ——–
(In thousands, except per
share amounts)
Restaurant sales $27,642 $24,001 $53,466 $45,857
Cost and expenses:
Cost of sales 8,385 7,318 16,033 13,937
Salaries and benefits 7,871 6,760 15,398 12,841
Other operating expenses 7,162 5,668 13,687 10,910
——– ——– ——– ——–
23,418 19,746 45,118 37,688
General and administrative
expenses 1,573 1,169 3,003 2,306
Depreciation and
amortization 991 787 1,937 1,497
——– ——– ——– ——–
Total costs and expenses 25,982 21,702 50,058 41,491
——– ——– ——– ——–
Operating income 1,660 2,299 3,408 4,366
Other income 20 156 127 324
——– ——– ——– ——–
Income before income taxes and
cumulative effect of change in
accounting principle 1,680 2,455 3,535 4,690
Income tax expense 588 835 1,237 1,595
——– ——– ——– ——–
Income before cumulative
effect of change in
accounting principle $ 1,092 $ 1,620 $ 2,298 $ 3,095
Cumulative effect of change in
accounting principle, net of
taxes – – – (181)
——– ——– ——– ——–
Net income $ 1,092 $ 1,620 $ 2,298 $ 2,914
======== ======== ======== ========
Basic earnings per share:
Net income before cumulative
effect of change in
accounting principle $ 0.23 $ 0.28 $ 0.45 $ 0.53
Cumulative effect of accounting
change, net of taxes – – – (0.03)
——– ——– ——– ——–
Net income $ 0.23 $ 0.28 $ 0.45 $ 0.50
======== ======== ======== ========
Diluted earnings per share:
Net income before cumulative
effect of change in accounting
principle $ 0.23 $ 0.27 $ 0.45 $ 0.51
Cumulative effect of accounting
change, net of taxes – – – (0.03)
——– ——– ——– ——–
Net income per share
– Diluted $ 0.23 $ 0.27 $ 0.45 $ 0.48
======== ======== ======== ========
Weighted average shares
outstanding – Basic 4,812 5,814 5,051 5,797
======== ======== ======== ========
Weighted average shares
outstanding – Diluted 4,812 6,042 5,062 6,019
======== ======== ======== ========
