Papa John's Reports Third Quarter 2006 Earnings.October October: see month. Comparable Sales Results Announced; 2006 Earnings Guidance Updated LOUISVILLE Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky. -- Papa John's International, Inc. (NASDAQ NASDAQin full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : PZZA): Highlights * Third quarter earnings per share of $0.40 in 2006 vs. $0.31 in 2005 ($0.31 in 2006 vs. $0.25 in 2005, excluding the consolidation of the company's franchisee-owned cheese purchasing entity, BIBP BIBP Base d'Information Bibliographique En Patristique BIBP Buddies in Big Places (web comic) Commodities, Inc. (BIBP)). * Third quarter 2006 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. includes $0.03 from the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of certain income tax issues. * 18 net restaurant openings during the quarter. * Domestic system-wide comparable sales for the quarter increased 4.5%. * Domestic system-wide comparable sales for October decreased 1.8%. * Earnings guidance for 2006 updated to a range of $1.45 to $1.49 per share, excluding the impact of consolidating BIBP. Papa John's International, Inc. (NASDAQ: PZZA) today announced revenues of $239.7 million for the third quarter of 2006, representing an increase of 2.8% from revenues of $233.1 million for the same period in 2005. Net income for the third quarter of 2006 was $13.1 million, or $0.40 per share (including a net gain of $3.0 million, or $0.09 per share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity and $950,000, or $0.03 per share, from the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of certain income tax examination issues), compared to last year's net income of $10.8 million, or $0.31 per share (including a net gain of $1.9 million, or $0.06 per share, from the consolidation of BIBP). Excluding the impact of BIBP, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter of 2006 increased $1.0 million (or $0.02 per share, after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) from the corresponding 2005 period. As discussed below, revenues were $723.6 million for the nine months ended September September: see month. 24, 2006, which are substantially flat with revenues for the same period in 2005. Net income for the nine months ended September 24, 2006 was $44.4 million, or $1.33 per share (including net income of $10.4 million, or $0.31 per share, from the consolidation of BIBP and $950,000, or $0.03 per share, from the previously mentioned finalization of certain income tax examination issues), compared to last year's net income of $31.6 million, or $0.92 per share (including a net gain of $800,000, or $0.02 per share, from the consolidation of BIBP). Excluding the impact of BIBP, pre-tax income from continuing operations increased $5.1 million (or $0.10 per share, after-tax) from the corresponding 2005 period. "Our third quarter results were very good, with our system continuing to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the competition in a very challenging environment, while we continue to make both domestic and international investments to sustain our longer-term growth," commented Papa John's president and chief executive officer, Nigel Travis. Revenues Comparison The primary reasons for the $6.6 million, or 2.8%, increase in revenues for the third quarter of 2006, as compared to the same period in 2005, were a $3.5 million increase in commissary COMMISSARY. An officer whose principal duties are to supply the army with provisions. 2. The Act of April 14, 1818, s. 6, requires that the president, by and with the consent of the senate, shall appoint a commissary general with the rank, pay, and emoluments revenues reflecting increased volumes and an increase in domestic franchise royalties of $874,000 as a result of the 4.5% increase in comparable sales and additional equivalent units for the quarter. In addition, international revenues increased $1.4 million as a result of additional company-owned restaurants located in the United Kingdom and Mexico. Revenues for domestic company-owned restaurants were substantially consistent with the prior year quarter due to offsetting factors as discussed on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, below. For the nine-month period ended September 24, 2006, consolidated revenues were $723.6 million, which is substantially flat with the corresponding 2005 period. Commissary revenues and domestic franchise royalties increased $10.7 million and $2.8 million, respectively, for the nine months ended September 24, 2006, as compared to the corresponding 2005 period. The revenue increases in the commissary operations and franchise royalties occurred for the same reasons mentioned above for the third quarter-only results. The increases were substantially offset by decreases in revenues for company-owned restaurants and restaurants classified as variable interest entities (VIEs). Company-owned restaurant revenues declined $8.6 million, as the 5.0% increase in comparable sales on a year-to-date basis was more than offset by a decline in the number of equivalent units reflecting the sale of 84 company restaurants to a new franchisee at the beginning of the fourth quarter of 2005 (partially offset by the acquisition of 43 franchised restaurants during the current quarter). Revenues from VIE restaurants declined $3.1 million reflecting the sale of restaurants by two franchisees to third parties during 2005 and 2006, eliminating the VIE classification under Interpretation No. 46, Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51 (FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. 46), and the related consolidation of the operating results of such restaurants at that time. Operating Results and Cash Flow Operating Results Our pre-tax income from continuing operations for the third quarter of 2006 was $19.8 million compared to $16.5 million for the corresponding period in 2005. For the nine months ended September 24, 2006, pre-tax income from continuing operations was $68.8 million compared to $48.0 million for the corresponding period in 2005. Excluding the impact of the consolidation of BIBP, third quarter 2006 pre-tax income from continuing operations was $14.5 million, an increase of $1.0 million over 2005 comparable results, and pre-tax income for the nine months ended September 24, 2006 was $51.8 million, an increase of $5.1 million over 2005 comparable results. The increase of $1.0 million and $5.1 million, respectively, in pre-tax income from continuing operations for the three- and nine-month periods ended September 24, 2006 (excluding the consolidation of BIBP) is principally due to the following (analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. on a segment basis -- see the Summary Financial Data table that follows for the reconciliation of segment income to consolidated income below): * Domestic Company-owned Restaurant Segment. Domestic company-owned restaurants' operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased approximately $900,000 and $7.8 million for the three- and nine-month periods ended September 24, 2006, respectively, primarily due to fixed-cost leverage and related margin improvement associated with the noted increase in comparable sales (see below) for the periods. * Domestic Commissary Segment. Domestic commissaries' operating income increased approximately $2.9 million and $5.5 million for the three- and nine-month periods ended September 24, 2006, respectively, primarily due to the margin on increased sales volumes, including sales to the theme-park operator Six Flags For the national flags of Texas, see . Six Flags (NYSE: SIX) is the world's largest chain of amusement parks and theme parks and is headquartered in New York City. There are 20 such parks run by Six Flags. , Inc. as part of our multi-year strategic marketing alliance and partnership agreement that was announced in late March 2006. * Domestic Franchising Segment. Domestic franchising operating income increased approximately $360,000 and $1.1 million for the three- and nine-month periods ended September 24, 2006, respectively, primarily as a result of an increase in royalties due to an increase in comparable sales (see below) and the royalties from the 84 restaurants that were purchased by a franchisee from the company at the beginning of the fourth quarter of 2005. The increase in royalties during 2006 was partially offset by an increase in administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. related to the field organizational restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). implemented in late 2005 to better drive the performance of our domestic franchise operations. * International Segment. The international segment, which excludes the Perfect Pizza operations that were sold in March 2006, reported operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.0 million and $6.8 million for the three- and nine-month periods ended September 24, 2006, respectively, as compared to operating losses of $1.2 million and $2.7 million for the corresponding 2005 periods. The decrease in operating results is principally due to increased costs related to the continued development of our support infrastructure throughout the international segment, including the United Kingdom, to support the accelerated development of both company-owned and franchised Papa John's branded restaurants in our international markets. In addition, the company incurred a $470,000 charge in the second quarter related to a management reorganization of one of our international operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . * All Others Segment. The operating income for the "All others" reporting segment was substantially flat for the three-month period ended September 24, 2006 as compared to the corresponding 2005 period. Operating income for this segment for the nine-month period ended September 24, 2006 increased $1.1 million primarily due to improved operating results from our insurance business and our partnership development activities. * Unallocated Corporate Segment. The unallocated corporate expenses increased $2.3 million and $5.6 million for the three- and nine-month periods ended September 24, 2006, respectively, as compared to the corresponding prior year periods. Increased marketing efforts, primarily related to non-traditional restaurant initiatives, resulted in additional costs of $1.4 million and $2.0 million, respectively, for the three- and nine-month periods ended September 24, 2006. In addition, we incurred additional equity compensation and executive performance unit incentive plan expense, as follows. Stock options were awarded to the majority of management in late March 2005 and April 2006, each with a two-year cliff vesting Cliff Vesting A type of vesting that occurs entirely at a specified time rather than gradually. Notes: Until the specified time there is no vesting, at which point the benefit becomes fully vested. provision. The company also granted approximately 28,000 shares of performance-based restricted stock to employees during the second quarter of 2006 with a performance period of three years. There were no such stock options or restricted stock awarded in 2004 that vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) in 2005 or subsequent years. Stock compensation expense recognized for the three- and nine-month periods ended September 24, 2006 was $1.2 million and $3.1 million, respectively, as compared to $725,000 and $1.6 million for the corresponding 2005 periods. Additionally, performance units were awarded in 2005 and 2006 to certain members of management with each award having a three-year performance period (none awarded prior to 2005). Further, the ultimate cost associated with the performance units is based on the company's ending stock price and total shareholder return relative to a peer group over the three-year performance period ending in December 2007 for the 2005 program and December 2008 for the 2006 program, with the awards paid in cash at the end of the respective performance periods. The total expense related to the 2005 and 2006 performance unit programs was approximately $925,000 in the third quarter of 2006 as compared to $675,000 in the third quarter of 2005 and $2.3 million for the nine months ended September 24, 2006 as compared to $1.0 million for the corresponding 2005 period. Net interest expense increased approximately $145,000 for the three-month period ended September 24, 2006, as compared to the corresponding 2005 period, principally due to an increased net average debt balance outstanding. For the nine months ended September 24, 2006, interest expense decreased $1.2 million principally due to a decrease in our average outstanding debt balance from the comparable prior year period. The income tax rate was 33.8% and 36.1% for the three- and nine-month periods ended September 24, 2006, compared to 37.0% for the corresponding 2005 periods. The decrease in the effective tax rate in 2006 is primarily due to the previously mentioned finalization of certain income tax examination issues in the current quarter. Cash Flow Cash flow from operating activities from continuing operations was $66.3 million in the first nine months of 2006 as compared to $61.5 million for the comparable period in 2005. The consolidation of BIBP increased cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses by approximately $17.0 million and $1.3 million in 2006 and 2005, respectively. Excluding the impact of the consolidation of BIBP, cash flow from continuing operations decreased $11.0 million in the first nine months of 2006 as compared to the corresponding 2005 period, primarily due to unfavorable working capital changes with accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. . The 2005 operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the collection of unusually high accounts receivable balances at the end of 2004. In addition, a decrease in cash flow from continuing operations occurred due to the classification in 2006 of $5.7 million of excess tax benefits related to the exercise of non-qualified stock options Non-qualified stock options are stock options which do not qualify for the special treatment accorded to incentive stock options. Incentive stock options are only available for employees and other restrictions apply for them. from operating activities to financing activities as required by Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 123R, Share-Based Payment. Form 10-Q Form 10-Q See 10-Q. Filing See the Management Discussion & Analysis section of our third quarter Form 10-Q filed with the Securities and Exchange Commission for additional information concerning the operating results and cash flows for the three- and nine-month periods ended September 24, 2006. Comparable Sales and Unit Count As previously announced, domestic system-wide comparable sales for the third quarter increased 4.5% (composed of a 4.3% increase at company-owned restaurants and a 4.5% increase at franchised restaurants). Total system-wide international sales for Papa John's branded units increased 30.9% for the quarter, on a constant U.S. dollar basis, over the comparable period last year. Domestic system-wide comparable sales for the nine months ended September 24, 2006 increased 4.4% (composed of a 5.0% increase at company-owned restaurants and a 4.3% increase at franchised restaurants). Total system-wide international sales for Papa John's branded units increased 27.7% on a year-to-date basis, on a constant U.S. dollar basis, over the comparable period last year. The company today announced that domestic system-wide comparable sales for the four weeks ended October 22, 2006 decreased approximately 1.8% (composed of a 0.6% decrease at company-owned restaurants and a 2.2% decrease at franchised restaurants). Total system-wide international sales for Papa John's branded units increased 21.4% for the four weeks ended October 22, 2006, on a constant U.S. dollar basis, over the comparable period last year. The company also today announced that December 2006 will be the last month of reporting monthly domestic comparable sales results. Beginning in 2007, domestic comparable sales results will be reported on a quarterly basis, matching the reporting methodology of our two primary national competitors. In addition to avoiding the potential competitive disadvantage of continuing to report monthly, we believe reporting on a quarterly basis will actually benefit investors by providing a more meaningful view of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. performance trends and strategies. During the third quarter of 2006, 31 domestic (five company-owned and 26 franchised) and 17 international franchised restaurants were opened and 22 domestic and eight international franchised restaurants were closed. At September 24, 2006, there were 2,978 Papa John's restaurants (564 company-owned and 2,414 franchised) operating in 49 states and 25 countries. The company-owned unit count includes 117 restaurants operated in majority-owned domestic joint venture arrangements, the operations of which are fully consolidated into the company's results. Acquisition Activity As previously disclosed, the company acquired 43 franchised restaurants in the Phoenix and Flagstaff, Arizona
Raleigh (IPA: /ˈrɑli/, ral-ee) is the capital of the State of North Carolina and the county seat of Wake County. market effective September 25, 2006 (beginning of period 10). It is not expected that these acquisitions will significantly impact operating income for the remainder of 2006 as management transition costs are expected to substantially offset incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. unit level operating income during this time frame. International Update A total of 17 restaurants were opened in all international markets during the quarter, of which 11 were located in our fastest growing markets of Korea and China. As of September 24, 2006, we had a total of 94 franchised restaurants open and contractual agreements for an additional 396 Papa John's restaurants to be opened over the next eight years in these two countries. We also have a ten-year, 100-unit development agreement for Northern India, of which three units are currently open. In addition, we recently signed a development agreement for 75 restaurants to be opened in South and West India West` In´di`a 1. Belonging or relating to the West Indies. West India tea (Bot.) a shrubby plant (Capraria biflora) having oblanceolate toothed leaves which are sometimes used in the West Indies as a substitute for tea. over the next six years. Our total international development pipeline as of September 24, 2006 included 836 restaurants expected to open over the next ten years. As noted in our first quarter Form 10-Q filing, the company sold its Perfect Pizza operations in the United Kingdom, consisting of the franchised units and related distribution operations, on March 8, 2006. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , we have classified the Perfect Pizza operating results, including directly associated G&A expenses, as "discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. " for both 2006 and 2005. The following summarizes the discontinued operations for 2006 and 2005 (in 000's): [TABLE OMITTED] Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Activity The company repurchased approximately 381,000 shares of its common stock at an average price of $32.14 per share, or a total of $12.2 million, during the third quarter of 2006, and 2.0 million shares of its common stock at an average of $31.58 per share, or a total of $64.0 million, during the first nine months of 2006. A total of 183,000 and 893,000 shares of common stock, respectively, were issued upon the exercise of stock options for the three- and nine-month periods ended September 24, 2006. As a result, there were 32.6 million diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. weighted average shares outstanding for the third quarter of 2006 as compared to 35.0 million for the same period in 2005. Approximately 31.9 million actual shares of the company's common stock were outstanding as of September 24, 2006. The company's board of directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to an aggregate $575.0 million of common stock through December 31, 2006, and through September 24, 2006, approximately 36.7 million shares have been repurchased at a total cost of $559.8 million (average price of $15.24 per share). There were no repurchases subsequent to September 24, 2006. The company's share repurchase activity increased earnings per share from continuing operations by $0.02 and $0.06 for the three- and nine-month periods ended September 24, 2006, respectively. 2006 Earnings Guidance Updated In connection with the second quarter earnings release, the company revised the original guidance for 2006, excluding the impact of the consolidation of BIBP, to a range of $1.42 to $1.46 (including the previously disclosed $0.07 benefit from the extra week of operations in the fourth quarter of 2006). Based upon actual third quarter operating results, including the impact of the finalization of certain income tax examination issues, which resulted in an additional $0.03 of earnings per share, the company is updating its 2006 EPS guidance to a range of $1.45 to $1.49. Our determination of the updated fourth quarter earnings guidance for 2006 included the following factors: * Expected transition and infrastructure costs and unit level operating losses associated with the planned domestic and international development opportunities currently being pursued. * The continued year-over-year increase in equity compensation costs in the fourth quarter for reasons as explained for the first three quarters of 2006. The updated full-year guidance assumes domestic comparable sales will increase 3% to 5% for the year (3.8% increase year-to-date through October). Total sales growth for international Papa John's branded units is expected to be in the range of 25% to 30% (27.1% increase year-to-date through October). Our worldwide unit openings are expected to be near the upper end of our initial guidance range of 210 to 240 units (151 openings through September). However, worldwide closings are expected to exceed our initial guidance range of 70 to 100 (99 closings through September). This includes 34 restaurants closed in Mexico as a result of our restructuring of that market. Therefore, worldwide net unit growth is now expected to be in the 100 to 115-unit range (52 net unit openings through September). The lower than anticipated net unit growth did not significantly impact our 2006 earnings. There are no other significant changes in the key operating assumptions we provided in our press release dated August 1, 2006. As noted above, the impact of the additional week of operations in the fourth quarter of 2006 provides $0.07 of earnings per share, as reflected in the above earnings guidance range. Accordingly, our baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version 2006 earnings per share, adjusted to exclude BIBP, the 53rd week of operations and the benefit from the finalization of certain income tax examination issues, is projected to be $1.35 to $1.39. We plan on issuing our initial 2007 earnings guidance in mid-December; however, we have consistently discussed an expectation of a 10% to 12% earnings per share growth target, and we would further expect such growth target to be applied to baseline 2006 earnings adjusted as noted above. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Except for historical information, this announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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. Certain factors that can cause actual results to materially differ include: the uncertainties associated with litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; changes in pricing or other marketing or promotional strategies by competitors, which may adversely affect sales; new product and concept developments by food industry competitors; the ability of the company and its franchisees to meet planned growth targets and operate new and existing restaurants profitably; increases in or sustained high levels of food, paper, utilities, fuel, employee compensation and benefits, insurance and similar costs; the ability to obtain ingredients from alternative suppliers, if needed; health- or disease-related disruptions or consumer concerns about commodities supplies; the selection and availability of suitable restaurant locations; negotiation of suitable lease or financing terms; constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. on permitting and construction of restaurants; local governmental agencies restricting the sale of certain food products; higher-than-anticipated construction costs; the hiring, training and retention of management and other personnel; changes in consumer taste, demographic trends, traffic patterns and the type, number and location of competing restaurants; franchisee relations; federal and state laws governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. such matters as wages, working conditions, citizenship requirements and overtime; and labor shortages A Labor shortage is an economic condition in which there are insufficient qualified candidates (employees) to fill the market-place demands for employment at any price. This condition is sometimes referred to by Economists as "an insufficiency in the labor force. in various markets resulting in higher required wage rates. The above factors might be especially harmful to the financial viability of franchisees or company-owned operations in under-penetrated or emerging markets, leading to greater unit closings than anticipated. Increases in projected claims losses for the company's self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance coverage or within the captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. franchise insurance program could have a significant impact on our operating results. Our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. are subject to additional factors, including economic, political and health conditions in the countries in which the company or its franchisees operate; currency regulations and fluctuations; differing business and social cultures and consumer preferences; diverse government regulations and structures; ability to source high-quality ingredients and other commodities in a cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. manner; and differing interpretation of the obligations established in franchise agreements with international franchisees. 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. Conference Call A conference call is scheduled for Wednesday, November 1, 2006, at 10:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy to review third quarter earnings results. The call can be accessed from the company's web page at www.papajohns.com in a listen-only mode, or dial 800-487-2662 for participation in the question and answer session. International participants may dial 706-679-8452. The conference call will be available for replay beginning Wednesday, November 1, 2006 at approximately noon through Friday, November 3, 2006, at midnight EST. The replay can be accessed from the company's web page at www.papajohns.com or by dialing 800-642-1687 (passcode 2263153). International participants may dial 706-645-9291 (passcode 2263153). [TABLE OMITTED] As of October 22, 2006, Papa John's had 2,986 restaurants (577 company-owned and 2,409 franchised) operating in 49 states and 25 countries. For more information about the company, please visit www.papajohns.com. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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