Net income as-reported was up 76.6% versus the prior year, driven by gains on the extinguishment of debt, improved operating margins, lower interest expense and international store growth.
Year-to-date, the Company has repurchased approximately $161 million in principal amount of its long-term debt. As of the quarter end, the Company had nearly $49 million of unrestricted cash and cash equivalents.
During the third quarter, domestic same store sales were flat while international same store sales grew 2.7%. The quarter also marked the 63rd consecutive quarter of same store sales growth in Domino's international division.
Third Quarter Highlights:
(dollars in Third Third First Three First Three
millions, except Quarter Quarter Quarters Quarters
per share data) of 2009 of 2008 of 2009 of 2008
------- ------- ----------- -----------
Net income $17.8 $10.1 $56.1 $42.9
Weighted average
diluted shares 57,981,137 58,042,743 57,680,513 58,859,220
Diluted earnings per
share, as-reported $0.31 $0.17 $0.97 $0.73
Items affecting
comparability (see
section below) $(0.14) $(0.05) $(0.40) $(0.17)
------ ------ ------ ------
Diluted earnings per
share, as adjusted $0.17 $0.13 $0.57 $0.56
===== ===== ===== =====
-- Diluted EPS was $0.31 on an as-reported basis for the third quarter,
up $0.14 from the prior year period. Excluding items affecting
comparability, diluted EPS increased $0.04, primarily due to operating
margin improvements and lower interest expense primarily from recent
debt extinguishments. This was offset in part by the negative impact
of foreign currency exchange rates on international operations. (See
the Items Affecting Comparability section and the Comments on
Regulation G section.)
-- Global Retail Sales were down 1.9% in the third quarter, or up 3.9%
when excluding the impact of foreign currency.
Third Third
Quarter Quarter
of 2009 of 2008
--------- ---------
Same store sales growth: (versus prior
year period)
Domestic Company-owned stores (2.0)% (3.4)%
Domestic franchise stores +0.3% (6.4)%
------- -----
Domestic stores 0.0% (6.1)%
=== =====
International stores +2.7% +5.4%
===== ======
Global retail sales growth: (versus prior
year period)
Domestic stores (1.6)% (5.8)%
International stores (2.1)% +14.1%
----- -----
Total (1.9)% +2.4%
===== ======
Global retail sales growth: (versus prior
year period, excluding foreign currency impact)
Domestic stores (1.6)% (5.8)%
International stores +10.4% +12.2%
----- -----
Total + 3.9% + 1.6%
====== ======
Domestic
Company- Domestic Total
owned Franchise Domestic International
Stores Stores Stores Stores Total
-------- --------- -------- ------------- -----
Store counts:
Store count at
June 14, 2009 483 4,484 4,967 3,906 8,873
Openings - 17 17 49 66
Closings (2) (45) (47) (6) (53)
-- --- --- -- ---
Store count at
September 6,
2009 481 4,456 4,937 3,949 8,886
=== ===== ===== ===== =====
Third quarter
2009 net growth (2) (28) (30) 43 13
== === === == ==
Trailing four
quarters net
growth (31) (118) (149) 309 160
=== ==== ==== === ===