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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 First Quarter 2016 Financial Results

Strong Fundamentals and Continued Innovation Help Drive Positive Results

ANN ARBOR, Michigan, April 28, 2016: Dominos Pizza, Inc. (NYSE: DPZ),

the recognized world leader in pizza delivery, today announced results for the first quarter of 2016, comprised of growth in same store sales, global store counts and earnings per share. Domestic same store sales grew 6.4% during the quarter versus the year-ago period, continuing the 20-quarter positive sales momentum in the U.S. business. The international d ivision also posted strong results with quarterly same store sales growth of 7.9%, marking the 89

consecutive quarter of international same store sales growth. The Company had global net store growth of 162 stores in the quarter, and 953 net new stores on a trailing thirteen period basis.

Diluted EPS was 89 cents for the first quarter, which was up 9.9% over the Companys reported EPS in the prior year quarter. During the quarter, the Company received and retired 456,936 shares of its common stock upon the completion of its previously announced accelerated share repurchase (ASR) program. The Board of Directors also declared a 38-cent per share quarterly dividend for shareholders of record as of June 15, 2016, to be paid on June 30, 2016.

J. Patrick Doyle, Dominos President and Chief Executive Officer

, said: We started 2016 with yet another strong quarter of growth for both our international and domestic operations. Business remains robust thanks to our tremendous fundamentals and brand momentum.

First Quarter Highlights:

(dollars in millions, except per share data)

Quarter of

Net income

Weighted average diluted shares

51,230,604

57,013,552

Diluted earnings per share

Revenues

were up 7.4% for the first quarter versus the prior year period, due primarily to higher supply chain revenues from increased volumes. Increased domestic franchise and Company-owned store revenues and higher international revenues resulting from both same store sales and store count growth also contributed to this increase. The negative impact of foreign currency exchange rates partially offset this increase.

Net Income

was down 1.8% for the first quarter versus the prior year period, due to higher interest expense as a result of the Companys 2015 recapitalization, as well as the negative impact of foreign currency exchange rates. Higher domestic and international same store sales growth, global store count growth and higher supply chain volumes partially offset this decrease.

Diluted EPS

was 89 cents for the first quarter versus 81 cents in the prior year quarter. This represents an 8-cent or 9.9% increase over the prior year quarter. This increase was driven by the aforementioned operating results as well as lower diluted share counts, primarily as a result of the ASR program.

More

Dominos Pizza: Q1 2016 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 three for additional details.

Quarter of

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

Franchise

Store counts:

Store count at January 3, 2016

12,530

Openings

Closings

Store count at March 27, 2016

12,692

First quarter 2016 net change

Trailing four quarters net change

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 first quarter 2016 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

biz.dominos.com

. The webcast will also be archived for one year on

Accelerated Share Repurchase Program

During the first quarter of 2016, the Companys previously announced $600.0 million ASR program was completed. On March 14, 2016, at final settlement, the Company received and retired 456,936 shares of its common stock based on the terms of the related ASR agreement. The average purchase price per share for all of the 5,315,930 shares the Company received and retired over the entirety of the $600.0 million ASR program was $112.87. As of April 21, 2016, the Company had authorization for repurchases of $200.0 million remaining under its open market share repurchase program.

Dominos Pizza: Q1 2016 Earnings Release, Page Three

Liquidity

As of March 27, 2016, the Company had approximately:

$178.3 million of unrestricted cash and cash equivalents;

$2.21 billion in total debt; and

$78.8 million of available borrowings under its $125.0 million variable funding notes, net of letters of credit issued of $46.2 million. The Company has collateralized $35.0 million of these letters of credit with restricted cash, and has the ability to access this cash with minimal notice.

The Company invested $10.5 million in capital expenditures during the first quarter of 2016, versus $7.6 million in the first quarter of 2015. Free cash flow, as reconciled below to cash flows from operations as determined under generally accepted accounting principles (GAAP), was approximately $6.7 million in the first quarter of 2016.

(in thousands)

First Quarter

Net cash provided by operating activities

17,148

Capital expenditures

(10,486

Comments on Regulation G

In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G. The Company has also included metrics such as global retail sales growth and same store sales growth, which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance.

The Company uses

to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Dominos Pizza

brand. In addition, supply chain revenues are directly impacted by changes in franchise retail sales. Retail sales for franchise stores are reported to the Company by its franchisees and are not included in Company revenues.

Same store sales growth

, which is calculated by 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 domestic same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales.

The Company uses

, which is calculated as cash flows from operations less capital expenditures, both as reported under GAAP. The Company believes that the free cash flow measure is important to investors and other interested persons, and that such persons benefit from having a measure which communicates how much cash flow is available for working capital needs or to be used for repurchasing debt, making acquisitions, repurchasing common stock, paying dividends or other similar uses of cash.

Dominos Pizza: Q1 2016 Earnings Release, Page Four

About Dominos Pizza

Founded in 1960, Dominos Pizza is the recognized world leader in pizza delivery, with a significant business in carryout pizza. It ranks among the worlds top public restaurant brands with a global enterprise of more than 12,600 stores in over 80 international markets. Dominos had global retail sales of over $9.9 billion in 2015, with more than $4.8 billion in the U.S. and nearly $5.1 billion internationally. In the first quarter of 2016, Dominos had global retail sales of over $2.3 billion, with over $1.1 billion in the U.S. and nearly $1.2 billion internationally. Its system is comprised of independent franchise owners who accounted for nearly 97% of Dominos stores as of the first quarter of 2016. Emphasis on technology innovation helped Dominos generate over 50% of U.S. sales from digital channels at the end of 2015, and an estimated $4.7 billion annually in global digital sales. Dominos features an ordering app lineup that covers nearly 95% of the U.S. smartphone market and recently introduced several innovative ordering platforms, including Ford SYNC

, Samsung Smart TV

Apple Watch and Amazon Echo, as well as Twitter and text message using a pizza emoji. In late 2015, Dominos announced the design and launch of the DXP

, a purpose-built pizza delivery vehicle, as well as its first digital customer loyalty program.

Order

AnyWare Ordering

anyware.dominos.com

Company Info

Twitter

twitter.com/dominos

Facebook

facebook.com/dominos

Instagram

instagram.com/dominos

YouTube

youtube.com/dominos

Please visit our Investor Relations website at biz.dominos.com to view a schedule of upcoming earnings releases, significant announcements and conference webcasts.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

This press release contains forward-looking statements. You can identify forward-looking statements because they contain words such as believes, expects, may, will, should, seeks, approximately, intends, plans, estimates, or anticipates or similar expressions that concern our strategy, plans or intentions. These forward-looking statements relating to our anticipated profitability, estimates in same store sales growth, the growth of our international business, ability to service our indebtedness, our future cash flows, our operating performance, trends in our business and other descriptions of future events reflect the Companys expectations based upon currently available information and data. However, actual results are subject to future risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause actual results to differ materially include: the level of our long-term and other indebtedness; uncertainties relating to litigation; consumer preferences, spending patterns and demographic trends; the effectiveness of our advertising, operations and promotional initiatives; the strength of our brand in the markets in which we compete; our ability to retain key personnel; new product, digital ordering and concept developments by us, and other food-industry competitors; the ongoing level of profitability of our franchisees; our ability and that of our franchisees to open new restaurants and keep existing restaurants in operation; changes in operating expenses resulting from changes in prices of food (particularly cheese), labor, utilities, insurance, employee benefits and other operating costs; the impact that widespread illness or general health concerns may have on our business and the economy of the countries where we operate; severe weather conditions and natural disasters; changes in our effective tax rate; changes in foreign currency exchange rates; changes in government legislation and regulations; adequacy of our insurance coverage; costs related to future financings; our ability and that of our franchisees to successfully operate in the current credit environment; changes in the level of consumer spending given the general economic conditions including interest rates, energy prices and consumer confidence; availability of borrowings under our variable funding notes and our letters of credit; and changes in accounting policies. Important factors that could cause actual results to differ materially from our expectations are more fully described in our other filings with the Securities and Exchange Commission, including under the section headed Risk Factors in our annual report on Form 10-K. These forward-looking statements speak only as of the date of this press release, and you should not rely on such statements as representing the views of the Company as of any subsequent date. Except as required by applicable securities laws, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

TABLES TO FOLLOW

Dominos Pizza: Q1 2016 Earnings Release, Page Five

Dominos Pizza, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

Fiscal Quarter Ended

March 22,

(In thousands, except per share data)

Revenues:

96,443

92,375

68,151

61,774

Supply chain

335,695

311,656

International franchise

38,886

36,222

Total revenues

539,175

502,027

Cost of sales:

72,755

68,152

299,204

276,809

Total cost of sales

371,959

344,961

Operating margin

167,216

157,066

General and administrative

68,504

62,813

Income from operations

98,712

94,253

Interest expense, net

(25,870

(20,071

Income before provision for income taxes

72,842

74,182

Provision for income taxes

27,391

27,893

45,451

46,289

Earnings per share:

Common stock diluted

Dividends declared per share

Dominos Pizza: Q1 2016 Earnings Release, Page Six

Condensed Consolidated Balance Sheets

March 27, 2016

January 3, 2016

(In thousands)

Assets

Current assets:

Cash and cash equivalents

178,252

133,449

Restricted cash and cash equivalents

154,123

180,940

Accounts receivable

130,520

131,582

Inventories

39,108

36,861

Advertising fund assets, restricted

90,651

99,159

Prepaid expenses and other

33,832

20,646

Total current assets

626,486

602,637

Property, plant and equipment, net

131,060

131,890

Other assets

63,213

65,318

Total assets

820,759

799,845

Liabilities and stockholders deficit

Current liabilities:

Current portion of long-term debt

41,593

59,333

Accounts payable

86,137

106,927

Dividends payable

19,398

Advertising fund liabilities

Other accrued liabilities

95,947

110,007

Total current liabilities

333,726

375,983

Long-term liabilities:

Long-term debt, less current portion

2,173,403

2,181,460

43,909

42,653

Total long-term liabilities

2,217,312

2,224,113

Total stockholders deficit

(1,730,279

(1,800,251

Total liabilities and stockholders deficit

Dominos Pizza: Q1 2016 Earnings Release, Page Seven

Condensed Consolidated Statements of Cash Flows

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Losses on sale/disposal of assets

Amortization of debt issuance costs

Provision for deferred income taxes

Non-cash compensation expense

Tax impact from equity-based compensation

(31,896

(4,677

Changes in operating assets and liabilities

(15,135

29,624

17,817

84,745

Cash flows from investing activities:

(11,155

(7,600

Proceeds from sale of assets

Changes in restricted cash

26,817

Net cash provided by investing activities

16,817

Cash flows from financing activities:

Repayments of long-term debt and capital lease obligations

(27,459

Proceeds from exercise of stock options

Purchases of common stock

(29,512

Tax payments for restricted stock upon vesting

(3,036

(3,632

Payments of common stock dividends and equivalents

(13,965

Net cash provided by (used in) financing activities

10,419

(41,339

Effect of exchange rate changes on cash and cash equivalents

Change in cash and cash equivalents

44,803

44,136

Cash and cash equivalents, at beginning of period

30,855

Cash and cash equivalents, at end of period

74,991

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Quarterly report [Sections 13 or 15(d)] - April 28, 2016