Overland Park / KS. (npc) NPC International Inc. reported financial results for its third fiscal quarter ended September 29, 2015.
Third Quarter Highlights:
- Pizza Hut comparable store sales were (0.9) percent rolling over a decrease of (0.7) percent last year.
- Wendy’s comparable store sales were plus 3.1 percent.
- Adjusted Ebitda (reconciliation attached) was 22.0 MM USD; a decrease of 1.7 MM USD or 7 percent from the prior year.
- The Company generated a net loss of (2.1) MM USD compared to net income of 0.2 MM USD last year.
- Pizza Hut comparable store sales decreased (1.3) percent rolling over a decrease of (3.7) percent last year.
- Wendy’s comparable store sales increased +1.4 percent.
- Adjusted Ebitda (reconciliation attached) was 83.8 MM USD; an increase of 10.2 MM USD or 14 percent from the prior year.
- Net income was 2.9 MM USD, an increase of 1.2 MM USD from last year.
- Cash balances were 32.1 MM USD, an increase of 20.1 MM USD from fiscal year end.
- Our leverage ratio was 4.89X Consolidated Ebitda, net of allowable cash balances (as defined in our Credit Agreement).
NPC’s President and CEO Jim Schwartz said, «We were very pleased with the performance of our Wendy’s business this quarter which posted strong comparable store sales growth of over three percent and continued margin expansion. In contrast, our Pizza Hut business experienced a modestly soft top-line and margins were pressured somewhat in the form of higher labor costs associated with a mix shift to our more labor intensive delivery channel as we had less promotional activity this year on carry-out centered offers».
«Our Pizza Hut business continued to enjoy the margin benefit of a more favorable commodity environment this quarter; however, this benefit was more than offset by a modest decline in comparable store sales and higher labor costs. We have made strides this year in stabilizing the top line of the business and we look forward to consistent top line momentum to allow for margin expansion and improved profitability. Fortunately, we are making progress but when compared to overall category health, we must move faster and solidify our overall unique brand position in the market place».
«Our Wendy’s business had a fabulous quarter and is clearly benefiting from the on-target brand positioning and marketing efforts of the leadership team at Wendy’s, as well as, excellent restaurant level execution by our restaurant teams. There is no doubt that we have fully integrated all the acquisitions that make up our Wendy’s business today and have the capability and infrastructure to continue to grow this business in a meaningful way. We remain on track to exceed our Image Activation requirements for fiscal 2015 and we look forward to carrying this momentum through the end of the fiscal year and beyond».
«We are encouraged by our sales momentum half way through our fourth quarter. Wendy’s has accelerated its growth rate from its strong third quarter and Pizza Hut is solidly in positive sales growth territory. We look forward to a strong finish to fiscal 2015 and to further improving upon our Ebitda growth which has increased by 10.2 million or 14 percent on a year to date basis over the prior year, improving our profitability, liquidity and credit statistics relative to 2014».