The following selected financial data set forth should be read in conjunction with, and is qualified by reference to, Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and related notes included in this Form 10-K. The selected financial data, with the exception of store counts and same store sales growth, has been derived from the audited consolidated financial statements of Domino’s Pizza, Inc. and subsidiaries. This historical data is not necessarily indicative of results to be expected for any future period.
Fiscal year ended (8)
(dollars in millions, except per share data)
December 30, 2018 (4) (5)
December 31, 2017 (6)
January 1, 2017
January 3, 2016 (7)
December 28, 2014
Income statement data:
Revenues:
U.S. Company-owned stores
$
514.8
$
490.8
$
439.0
$
396.9
$
348.5
U.S. franchise royalties and fees
391.5
351.4
312.3
272.8
230.2
U.S. franchise advertising (1)
358.5
—
—
—
—
U.S. stores
1,264.8
842.2
751.3
669.7
578.7
Supply chain
1,943.3
1,739.0
1,544.3
1,383.2
1,262.5
International franchise royalties and fees
224.7
206.7
177.0
163.6
152.6
Total revenues
3,432.9
2,788.0
2,472.6
2,216.5
1,993.8
Cost of sales
2,130.2
1,922.0
1,704.9
1,533.4
1,399.1
Operating margin
1,302.7
866.0
767.7
683.1
594.8
General and administrative expense
372.5
344.8
313.6
277.7
249.4
U.S. franchise advertising (1)
358.5
—
—
—
—
Income from operations
571.7
521.2
454.0
405.4
345.4
Interest income
3.3
1.5
0.7
0.3
0.1
Interest expense
(146.3
)
(122.5
)
(110.1
)
(99.5
)
(86.9
)
Income before provision for income taxes
428.7
400.2
344.7
306.2
258.6
Provision for income taxes
66.7
122.2
130.0
113.4
96.0
Net income
$
362.0
$
277.9
$
214.7
$
192.8
$
162.6
Earnings per share:
Common stock – basic
$
8.65
$
6.05
$
4.41
$
3.58
$
2.96
Common stock – diluted
8.35
5.83
4.30
3.47
2.86
Dividends declared per share
$
2.20
$
1.84
$
1.52
$
1.24
$
1.00
Balance sheet data (at end of period):
Cash and cash equivalents
$
25.4
$
35.8
$
42.8
$
133.4
$
30.9
Restricted cash and cash equivalents
167.0
191.8
126.5
180.9
121.0
Cash and cash equivalents included in advertising fund assets, restricted
The adoption of ASC 606 in 2018 resulted in the recognition of $358.5 million in revenue in 2018 related to U.S. franchise contributions to DNAF. In prior years, under accounting standards in effect at that time, we had presented these contributions net with the related disbursements in our consolidated statement of income. Refer to Note 1 to the consolidated financial statements for additional information related to the adoption of this new accounting standard.
(2)
The working capital amounts exclude restricted cash and cash equivalents, advertising fund assets, restricted, and advertising fund liabilities.
(3)
Same store sales growth is calculated including only sales from stores that also had sales in the comparable period of the prior year. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported on a constant dollar basis which reflects changes in international local currency sales. The 53rd week in fiscal 2015 had no impact on reported same store sales growth amounts.
(4)
In 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment. Prior to 2018, store counts and retail sales from these franchised stores were included in the Company’s international stores in the table above. Consolidated results of the Company have not been impacted by this change and prior year amounts have not been reclassified to conform to the current year presentation due to immateriality.
(5)
In connection with our 2018 Recapitalization, the Company issued $825.0 million of fixed rate notes. A portion of the proceeds from the 2018 Recapitalization was used to repay the remaining $490.1 million in outstanding principal and interest under the Company’s 2015 five-year fixed rate notes, pre-fund a portion of the principal and interest payable on the 2018 Notes, pay transaction fees and expenses and repurchase and retire shares of the Company’s common stock. Refer to Note 4 of the consolidated financial statements for additional detail related to the 2018 Recapitalization.
(6)
In connection with our 2017 Recapitalization, the Company issued $1.9 billion of fixed and floating rate notes. A portion of the proceeds from the 2017 Recapitalization was used to repay the remaining $910.2 million in outstanding principal under the Series 2012-1 5.216% Fixed Rate Senior Secured Notes, Class A-2 (the “2012 Fixed Rate Notes”), pre-fund a portion of the principal and interest payable on the 2017 fixed and floating rate notes and pay transaction fees and expenses. The Company also used a portion of the proceeds from the 2017 Recapitalization to enter into a $1.0 billion accelerated share repurchase agreement to repurchase the Company’s common stock. Refer to Note 4 of the consolidated financial statements for additional detail related to the 2017 Recapitalization.
(7)
In connection with our 2015 Recapitalization, the Company issued $1.3 billion of fixed rate notes. A portion of the proceeds from the 2015 Recapitalization was used to make an optional prepayment of approximately $551.3 million in aggregate principal amount of its 2012 Fixed Rate Notes, at par, pay scheduled principal catch-up amounts on its 2012 Fixed Rate Notes, make an interest reserve deposit, pre-fund a portion of the principal and interest payable on the 2015 fixed rate notes and pay transaction fees and expenses. The Company also used a portion of the proceeds from the 2015 Recapitalization to enter into a $600.0 million accelerated share repurchase agreement to repurchase the Company’s common stock. Refer to Note 4 of the consolidated financial statements for additional detail related to the 2015 Recapitalization.
(8)
The 2015 fiscal year includes 53 weeks and the 2018, 2017, 2016, and 2014 fiscal years each include 52 weeks.
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