Papa Johns International (PZZA) has reported 8.58 percent rise in profit for the quarter ended Mar. 26, 2017. The company has earned $28.43 million, or $0.77 a share in the quarter, compared with $26.18 million, or $0.69 a share for the same period last year.
Revenue during the quarter grew 4.82 percent to $449.27 million from $428.60 million in the previous year period. Gross margin for the quarter contracted 116 basis points over the previous year period to 20.51 percent. Total expenses were 90.28 percent of quarterly revenues, up from 89.99 percent for the same period last year. That has resulted in a contraction of 29 basis points in operating margin to 9.72 percent.
Operating income for the quarter was $43.68 million, compared with $42.90 million in the previous year period.
"We're pleased with our solid start to 2017, with good comparable sales and earnings growth despite a challenging environment for restaurants," said Papa John’s founder, chairman and chief executive officer John Schnatter. "With our digital sales percentage now over 60% and several initiatives that will build on our industry-leading quality advantage, we are leveraging our strengths to steadily grow the Papa John’s business globally for many years to come."
Operating cash flow improves significantlyPapa Johns International has generated cash of $47.33 million from operating activities during the quarter, up 39.81 percent or $13.48 million, when compared with the last year period. The company has spent $14.93 million cash to meet investing activities during the quarter as against cash outgo of $20.93 million in the last year period.
The company has spent $25.32 million cash to carry out financing activities during the quarter as against cash outgo of $16.60 million in the last year period.
Cash and cash equivalents stood at $22.72 million as on Mar. 26, 2017, up 31.51 percent or $5.44 million from $17.27 million on Mar. 27, 2016.
Working capital drops significantly
Papa Johns International has witnessed a decline in the working capital over the last year. It stood at $25.14 million as at Mar. 26, 2017, down 28.89 percent or $10.21 million from $35.36 million on Mar. 27, 2016. Current ratio was at 1.21 as on Mar. 26, 2017, down from 1.34 on Mar. 27, 2016.
Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 10 days for the last year period. Days sales outstanding were almost stable at 14 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 3 days for the quarter compared with 6 days for the previous year period. At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.
Debt comes downPapa Johns International has recorded a decline in total debt over the last one year. It stood at $294.33 million as on Mar. 26, 2017, down 7.07 percent or $22.38 million from $316.72 million on Mar. 27, 2016. Papa Johns International has recorded a decline in long-term debt over the last one year. It stood at $294.33 million as on Mar. 26, 2017, down 7.07 percent or $22.38 million from $316.72 million on Mar. 27, 2016. Total debt was 56.99 percent of total assets as on Mar. 26, 2017, compared with 64.51 percent on Mar. 27, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
