The following are highlights for 2001 compared to 2000:
• Net income increased 45.9 percent to $36.8 million.
• Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 10.1 percent to a record $162.2 million.
• Domestic same store sales increased 4.0 percent, comprised of a 7.3 percent increase in company-owned same store sales and a 3.6% increase in domestic franchise same-store sales.
• International same store sales increased 6.4%, on a constant dollar basis.
• Systemwide sales increased 6.8 percent to a record $3.785 billion.
"We are extremely proud of achieving another year of record earnings in this highly competitive industry,'' said Domino's chairman and CEO David A. Brandon. "Our ability to lead all reporting national competitors in same-store sales growth for the first time in many years was a great accomplishment.
"Our results confirm we're on the right track, both in terms of our brand message, and how we have improved the consistency and quality of our store operations,'' Brandon said. "We challenged our entire system to improve, and our results in 2001 demonstrate the progress we are making. Our expectations continue to be high and we're looking forward to building on the momentum we generated throughout 2001.''
The following are highlights for Domino's fourth quarter of 2001 compared to the same period in 2000:
• Net income increased 21.9 percent to $12.2 million.
• EBITDA increased 14.8 percent to a record $52.8 million.
• Domestic same store sales increased 5.8%, comprised of an 8.0 percent increase in company-owned same-store sales and a 5.5 percent increase in domestic franchise same-store sales.
• International same store sales increased 5.1%, on a constant dollar basis, marking the 32nd consecutive quarter of international same store sales growth.
• Systemwide sales increased 7.4 percent to a record $1.197 billion.
Domino's says the increases in the fourth quarter and year-to-date system-wide sales in 2001 are due primarily to increases in both domestic and international same-store sales and worldwide store counts.
Domino's says the increases in fourth quarter and year-to-date total revenues in 2001 are due primarily to increases in distribution volumes and increased revenues from domestic and international franchise royalties. These increases in revenues were offset in part by decreases in revenues from company-owned stores. Domino's says these decreases in revenues from company-owned stores resulted from the strategic sales of certain company-owned stores to franchisees and were offset in part by increases in same-store sales.
The increases in fourth quarter and year-to-date EBITDA in 2001 are due primarily to strong systemwide sales growth as a result of increases in domestic and international same store sales. Additionally, the company added 95 stores worldwide during 2001.
During 2001, domestic same store sales increased 4.0 percent, comprised of a 7.3 percent increase in company-owned same store sales and a 3.6 percent increase in domestic franchise same store sales. The increase in domestic same store sales during 2001 was due in part to improvements in overall marketing programs, according to the company. Domino's also benefited from increases in distribution volumes as a result of increased domestic sales activity. These EBITDA gains were offset in part by continued margin pressures at company-owned stores, primarily as a result of increased food costs, including higher cheese costs, labor, and energy costs.
Net income was positively affected by increases in EBITDA and reductions in our interest costs due to lower debt levels and more favorable variable interest rates, while negatively impacted by increases in provision for income taxes due to increases in pre-tax income.
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