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Actionable news in DPZ: DOMINO'S PIZZA Inc,

Domino's Pizza: Communications, Investor Relations And Legislative Affairs

The following excerpt is from the company's SEC filing.

(734) 930-3008

Dominos Pizza

Announces Third Quarter 2015 Financial Results

Continued Global Momentum with Strong Sales and Store Count Growth

ANN ARBOR, Michigan, October 8, 2015: Dominos Pizza, Inc. (NYSE: DPZ),

the recognized world leader in pizza delivery, today announced results for the third quarter of 2015, comprised of strong same store sales results and store count growth. Domestic same store sales grew 10.5% during the quarter versus the year-ago period, continuing the positive sales momentum in the Companys domestic business. The international division also post ed strong results with same store sales growth of 7.7%, marking the 87

consecutive quarter of international same store sales growth. The Company had global net store growth of 194 stores in the quarter.

During the quarter, the Company incurred incremental insurance expense relating to updated independent actuarial estimates for the Companys casualty insurance program, and faced continued pressure from foreign currency exchange rates. Diluted EPS was 67 cents for the third quarter, which was up 6.3% over the Companys diluted EPS in the prior year quarter.

The Company repurchased 365,460 shares of its common stock during the quarter for approximately $40.9 million. The Board of Directors also declared a 31-cent per share quarterly dividend for shareholders of record as of December 15, 2015, to be paid on December 30, 2015.

J. Patrick Doyle, Dominos President and Chief Executive Officer

, said: We are pleased with the sustained strong sales and continued momentum behind store growth. The things we are doing are working, and we will continue to aggressively lead the industry.

Third Quarter Highlights:

(dollars in millions, except per share data)

Quarter of

Three Fiscal

Quarters of

Net income

Weighted average diluted shares





Diluted earnings per share, as reported

Items affecting comparability*

Diluted earnings per share, as adjusted*

Refer to the

Items Affecting Comparability

section on page three for additional details. Diluted earnings per share figures may not sum to the total due to the rounding of each individual calculation.


were up 8.5% for the third quarter versus the prior year period, driven by higher supply chain volumes and sales of equipment to stores in connection with the Companys global store reimaging program. Higher domestic same store sales and store count growth, which resulted in increased royalties from franchised stores and higher revenues at Company-owned stores, also contributed to this increase. International revenues benefited from increased same store sales and store count growth, and were offset in part by the negative impact of foreign currency.

Net Income

was up 6.2% for the third quarter versus the prior year period, driven by domestic and international same store sales growth, global store count growth and higher supply chain volumes. These increases were offset in part by the negative impact of foreign currency exchange rates and incremental insurance expense related to the Companys casualty insurance program.

was 67 cents for the third quarter versus 63 cents in the prior year quarter, an increase of 4 cents, or 6.3%. This increase was due to higher net income and lower weighted average diluted shares outstanding.


Dominos Pizza: Q3 2015 Earnings Release, Page Two

The table below outlines certain statistical measures utilized by the Company to analyze its performance. Refer to the

Comments on Regulation G

section on page four for additional details.

Third Quarter

of 2014

Same store sales growth:

(versus prior year period)

Domestic Company-owned stores

Domestic franchise stores

Domestic stores

International stores (excluding foreign currency impact)

Global retail sales growth:

(versus prior year period, excluding foreign currency impact)

owned Stores


Store counts:

Store count at June 14, 2015





Store count at September 6, 2015


Third quarter 2015 net change

Trailing four quarters net change

Casualty Insurance

The Company has retention programs for workers compensation, general liability and owned and non-owned automobile liabilities for its corporate stores, offices and supply chain centers. Insurance reserves relating to these retention programs are based on independent actuarial estimates.

While the Companys claims activity in these areas has been fairly consistent over the past several years, as the Company announced on September 28, 2015, a more recent increase in the frequency and severity of claims resulted in an independent actuarial determination that required the Company to record a pre-tax expense of approximately $5.7 million in the third quarter. This resulted in an approximate six-cent decrease in the third quarter 2015 diluted earnings per share. The Company will continue to focus on its safety efforts for all of its team members.

Proposed Debt Refinancing

On September 28, 2015, the Company issued a press release announcing the intent of certain of its subsidiaries to complete a recapitalization transaction, which will include the refinancing of a portion of their outstanding securitized debt with a new series of securitized notes under its existing securitized financing facility.

Conference Call Information

The Company will file its quarterly report on Form 10-Q this morning. As previously announced, Dominos Pizza, Inc. will hold a

conference call today

at 10 a.m. (Eastern) to review its third quarter 2015 financial results. The call can be accessed by dialing (888) 400-9978 (U.S./Canada) or (706) 634-4947 (International). Ask for the Dominos Pizza conference call. The call will also be webcast at

. If you are unable to participate on the call, a replay will be available for 30 days by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406 (International), Conference ID 71624546. The webcast will also be archived for 30 days on

Dominos Pizza: Q3 2015 Earnings Release, Page Three

Share Repurchases

During the third quarter of 2015, the Company repurchased and retired 365,460 shares of its common stock under its open market share repurchase program for approximately $40.9 million, or an average price of $111.96 per share.


On October 6, 2015, the Board of Directors declared a 31-cent per share...